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Is Seiko Epson (SEKEY) a Great Value Stock Right Now?

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Seiko Epson (SEKEY). SEKEY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.53. This compares to its industry's average Forward P/E of 9.84. SEKEY's Forward P/E has been as high as 18.78 and as low as 8.93, with a median of 11.06, all within the past year.

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Finally, our model also underscores that SEKEY has a P/CF ratio of 3.70. 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 5.74. Over the past year, SEKEY's P/CF has been as high as 6.97 and as low as 3.47, with a median of 4.45.

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


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Zacks Investment Research