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Should Value Investors Buy Yamaha Motor Co. (YAMHF) Stock?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Yamaha Motor Co. (YAMHF - Free Report) . YAMHF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.02, while its industry has an average P/E of 9.05. YAMHF's Forward P/E has been as high as 9.36 and as low as 5.18, with a median of 6.55, 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 0.43. This compares to its industry's average P/S of 0.56.

Finally, our model also underscores that YAMHF has a P/CF ratio of 4.12. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.19. YAMHF's P/CF has been as high as 5.52 and as low as 3.48, with a median of 4.19, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Yamaha Motor Co. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YAMHF feels like a great value stock at the moment.


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