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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is The Mosaic Company (MOS - Free Report) . MOS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.7. This compares to its industry's average Forward P/E of 13.57. Over the past 52 weeks, MOS's Forward P/E has been as high as 15.57 and as low as 10.58, with a median of 12.68.

Another notable valuation metric for MOS is its P/B ratio of 0.86. 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. MOS's current P/B looks attractive when compared to its industry's average P/B of 0.93. Over the past year, MOS's P/B has been as high as 0.98 and as low as 0.61, with a median of 0.74.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOS has a P/S ratio of 1. This compares to its industry's average P/S of 1.29.

Finally, investors will want to recognize that MOS has a P/CF ratio of 5.05. 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. MOS's P/CF compares to its industry's average P/CF of 14.05. MOS's P/CF has been as high as 7.60 and as low as 4.60, with a median of 5.78, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that The Mosaic Company is likely undervalued currently. And when considering the strength of its earnings outlook, MOS sticks out as one of the market's strongest value stocks.


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