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Are Investors Undervaluing The Mosaic Company (MOS) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 to watch right now is The Mosaic Company (MOS - Free Report) . MOS is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.18, while its industry has an average P/E of 13.89. Over the last 12 months, MOS's Forward P/E has been as high as 15.57 and as low as 10.58, with a median of 12.85.

Another valuation metric that we should highlight is MOS's P/B ratio of 0.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.90. MOS's P/B has been as high as 1.01 and as low as 0.61, with a median of 0.73, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MOS has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.2.

Finally, investors should note that MOS has a P/CF ratio of 6.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.21. Over the past 52 weeks, MOS's P/CF has been as high as 7.77 and as low as 4.68, with a median of 6.26.

If you're looking for another solid Fertilizers value stock, take a look at Yara International ASA (YARIY - Free Report) . YARIY is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.

Additionally, Yara International ASA has a P/B ratio of 1.14 while its industry's price-to-book ratio sits at 0.90. For YARIY, this valuation metric has been as high as 1.36, as low as 0.87, with a median of 1.05 over the past year.

These are just a handful of the figures considered in The Mosaic Company and Yara International ASA's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MOS and YARIY is an impressive value stock right now.


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