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Is The Mosaic Company (MOS) 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 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 stock to keep an eye on is The Mosaic Company (MOS - Free Report) . MOS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.57. This compares to its industry's average Forward P/E of 7.49. Over the last 12 months, MOS's Forward P/E has been as high as 20.52 and as low as 4.49, with a median of 8.14.

Another valuation metric that we should highlight is MOS's P/B ratio of 1.62. 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. MOS's current P/B looks attractive when compared to its industry's average P/B of 1.97. MOS's P/B has been as high as 1.68 and as low as 1.04, with a median of 1.30, over 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. MOS has a P/S ratio of 1.39. This compares to its industry's average P/S of 1.57.

Finally, we should also recognize that MOS has a P/CF ratio of 6.48. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MOS's P/CF compares to its industry's average P/CF of 10.48. Over the past year, MOS's P/CF has been as high as 8.28 and as low as 4.77, with a median of 5.94.

Value investors will likely look at more than just these metrics, but the above data helps show that The Mosaic Company is likely undervalued currently. And when considering the strength of its earnings outlook, MOS sticks out at as one of the market's strongest value stocks.


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