Back to top

Are Investors Undervaluing Matson (MATX) Right Now?

Read MoreHide Full Article

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, 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.

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.

One company value investors might notice is Matson (MATX - Free Report) . MATX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 14.20, which compares to its industry's average of 18.35. Over the past year, MATX's Forward P/E has been as high as 19.63 and as low as 12.85, with a median of 15.24.

Another notable valuation metric for MATX is its P/B ratio of 2.17. 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 stock's P/B looks solid versus its industry's average P/B of 3.97. Over the past year, MATX's P/B has been as high as 2.54 and as low as 1.74, with a median of 2.21.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. MATX has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.8.

Finally, investors should note that MATX has a P/CF ratio of 4.42. 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 16.75. MATX's P/CF has been as high as 7.13 and as low as 3.52, with a median of 4.48, all within the past year.

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

In-Depth Zacks Research for the Tickers Above

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

Matson, Inc. (MATX) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in