Back to top

Image: Bigstock

Is Yamaha Motor Co. (YAMHF) Stock Undervalued Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

Yamaha Motor Co. (YAMHF - Free Report) is a stock many investors are watching right now. YAMHF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.76, which compares to its industry's average of 10.93. YAMHF's Forward P/E has been as high as 11.49 and as low as 6.76, with a median of 9.20, all within the past year.

We should also highlight that YAMHF has a P/B ratio of 1.03. The P/B is a method of comparing a stock's market value to 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 1.05. Over the past 12 months, YAMHF's P/B has been as high as 1.43 and as low as 1.03, with a median of 1.18.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. YAMHF has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.56.

Finally, we should also recognize that YAMHF has a P/CF ratio of 4.50. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.24. Over the past 52 weeks, YAMHF's P/CF has been as high as 9.26 and as low as 4.49, with a median of 5.34.

These are just a handful of the figures considered in Yamaha Motor Co.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that YAMHF is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Yamaha Motor Co., Ltd. (YAMHF) - free report >>

Published in