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Is Mazda Motor (MZDAY) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 to watch right now is Mazda Motor (MZDAY - Free Report) . MZDAY is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors should also recognize that MZDAY has a P/B ratio of 0.39. 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 1.13. Over the past year, MZDAY's P/B has been as high as 0.43 and as low as 0.28, with a median of 0.35.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MZDAY has a P/S ratio of 0.14. This compares to its industry's average P/S of 0.41.

Finally, investors will want to recognize that MZDAY has a P/CF ratio of 5.04. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MZDAY's current P/CF looks attractive when compared to its industry's average P/CF of 5.90. Over the past 52 weeks, MZDAY's P/CF has been as high as 5.41 and as low as 2.10, with a median of 2.55.

These are only a few of the key metrics included in Mazda Motor'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, MZDAY looks like an impressive value stock at the moment.


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