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Is TOKUYAMA CORP (TKYMY) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

TOKUYAMA CORP (TKYMY - Free Report) is a stock many investors are watching right now. TKYMY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.52. This compares to its industry's average Forward P/E of 13.74. TKYMY's Forward P/E has been as high as 9.80 and as low as 4.98, with a median of 7.41, all within the past year.

Another valuation metric that we should highlight is TKYMY's P/B ratio of 1.08. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.77. Over the past year, TKYMY's P/B has been as high as 1.26 and as low as 0.79, with a median of 1.10.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TKYMY has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.75.

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


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