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Is Yara International ASA (YARIY) Stock Undervalued Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Yara International ASA (YARIY - Free Report) is a stock many investors are watching right now. YARIY is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.48 right now. For comparison, its industry sports an average P/E of 12.73. Over the past 52 weeks, YARIY's Forward P/E has been as high as 13.77 and as low as 9.27, with a median of 11.02.

We should also highlight that YARIY has a P/B ratio of 1.15. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.30. Within the past 52 weeks, YARIY's P/B has been as high as 1.36 and as low as 0.87, with a median of 1.08.

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 0.67. This compares to its industry's average P/S of 1.14.

Finally, our model also underscores that YARIY has a P/CF ratio of 5.28. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.91. YARIY's P/CF has been as high as 7.77 and as low as 4.21, with a median of 5.60, all within the past year.

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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