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Is TOTAL S.A. (TOT) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

TOTAL S.A. is a stock many investors are watching right now. TOT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.55, while its industry has an average P/E of 12.94. TOT's Forward P/E has been as high as 11.29 and as low as 8.70, with a median of 9.88, all within the past year.

TOT is also sporting a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TOT's PEG compares to its industry's average PEG of 1.68. TOT's PEG has been as high as 1.61 and as low as 0.71, with a median of 0.98, all within the past year.

Another notable valuation metric for TOT is its P/B ratio of 1.17. 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 solid versus its industry's average P/B of 1.24. TOT's P/B has been as high as 1.35 and as low as 1.04, with a median of 1.17, over the past year.

Finally, investors should note that TOT has a P/CF ratio of 5.44. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.90. Over the past year, TOT's P/CF has been as high as 6.72 and as low as 4.93, with a median of 5.59.

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

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