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Are Investors Undervaluing Mazda Motor (MZDAY) 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.

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.

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 value investors might notice is Mazda Motor (MZDAY - Free Report) . MZDAY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is MZDAY's 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 stock's P/B looks attractive against its industry's average P/B of 1.14. Within the past 52 weeks, 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 0.13. This compares to its industry's average P/S of 0.38.

Finally, we should also recognize that MZDAY has a P/CF ratio of 5.04. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.60. Within the past 12 months, 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 just a handful of the figures considered in Mazda Motor's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MZDAY is an impressive value stock right now.

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