Yahoo Finance Is Suzuki Motor (SZKMY) Stock Undervalued 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Suzuki Motor (SZKMY). SZKMY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for SZKMY is its P/B ratio of 0.93. 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 attractive against its industry's average P/B of 1.54. Over the past 12 months, SZKMY's P/B has been as high as 1.09 and as low as 0.71, with a median of 0.94.
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. SZKMY has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.62.
Finally, our model also underscores that SZKMY has a P/CF ratio of 5.15. 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. SZKMY's P/CF compares to its industry's average P/CF of 5.66. Over the past year, SZKMY's P/CF has been as high as 7.06 and as low as 4.89, with a median of 5.79.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Suzuki Motor is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SZKMY feels like a great value stock at the moment.
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Suzuki Motor (SZKMY) : Free Stock Analysis Report
