Back to top

Image: Bigstock

Are Investors Undervaluing Subaru Corporation (FUJHY) Right Now?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Subaru Corporation (FUJHY - Free Report) . FUJHY is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors should also note that FUJHY holds a PEG ratio of 0.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FUJHY's PEG compares to its industry's average PEG of 0.41. FUJHY's PEG has been as high as 0.24 and as low as 0.15, with a median of 0.21, all within the past year.

We should also highlight that FUJHY has a P/B ratio of 0.82. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.15. Over the past year, FUJHY's P/B has been as high as 0.84 and as low as 0.64, with a median of 0.74.

Finally, investors should note that FUJHY has a P/CF ratio of 4.18. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.94. Over the past 52 weeks, FUJHY's P/CF has been as high as 4.30 and as low as 2.77, with a median of 3.24.

If you're looking for another solid Automotive - Foreign value stock, take a look at Suzuki Motor (SZKMY - Free Report) . SZKMY is a Zacks Rank of #2 (Buy) stock with a Value score of A.

Furthermore, Suzuki Motor holds a P/B ratio of 1.10 and its industry's price-to-book ratio is 1.15. SZKMY's P/B has been as high as 1.11, as low as 0.82, with a median of 0.95 over the past 12 months.

These are only a few of the key metrics included in Subaru Corporation and Suzuki Motor strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FUJHY and SZKMY look like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Subaru Corporation (FUJHY) - free report >>

Suzuki Motor (SZKMY) - free report >>

Published in