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Are Investors Undervaluing Yara International ASA (YARIY) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Yara International ASA (YARIY - Free Report) . YARIY is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 11.86, which compares to its industry's average of 15.94. Over the last 12 months, YARIY's Forward P/E has been as high as 13.77 and as low as 9.27, with a median of 11.47.

Another notable valuation metric for YARIY is its P/B ratio of 1.34. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.52. Over the past year, YARIY's P/B has been as high as 1.36 and as low as 0.87, with a median of 1.02.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. YARIY has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.48.

Finally, investors will want to recognize that YARIY has a P/CF ratio of 7.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.19. Over the past year, YARIY's P/CF has been as high as 7.77 and as low as 4.21, with a median of 6.15.

These are only a few of the key metrics included in Yara International ASA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, YARIY looks like an impressive value stock at the moment.


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