Yahoo Finance Should Value Investors Buy Yamaha Motor Co. (YAMHF) Stock?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Yamaha Motor Co. (YAMHF). YAMHF 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 7.08. This compares to its industry's average Forward P/E of 7.48. YAMHF's Forward P/E has been as high as 7.75 and as low as 5.54, with a median of 6.16, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. YAMHF has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.51.
Finally, investors should note that YAMHF has a P/CF ratio of 4.72. 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 4.95. Over the past year, YAMHF's P/CF has been as high as 5.20 and as low as 3.57, with a median of 4.15.
Value investors will likely look at more than just these metrics, but the above data helps show that Yamaha Motor Co. Is likely undervalued currently. And when considering the strength of its earnings outlook, YAMHF sticks out at as one of the market's strongest value stocks.
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Yamaha Motor Co., Ltd. (YAMHF) : Free Stock Analysis Report
