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Should Value Investors Buy Yara International ASA (YARIY) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now 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 P/E ratio of 10.48 right now. For comparison, its industry sports an average P/E of 15.62. YARIY's Forward P/E has been as high as 13.77 and as low as 9.27, with a median of 11.02, all within 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. YARIY has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.64.

Finally, investors will want to recognize that YARIY has a P/CF ratio of 5.28. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 10.20. Within the past 12 months, YARIY's P/CF has been as high as 7.77 and as low as 4.21, with a median of 5.60.

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

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