Back to top

Image: Bigstock

Is Bayerische Motoren Werke (BAMXF) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

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.

Bayerische Motoren Werke (BAMXF - Free Report) is a stock many investors are watching right now. BAMXF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.96 right now. For comparison, its industry sports an average P/E of 8.14. Over the past 52 weeks, BAMXF's Forward P/E has been as high as 7.03 and as low as 4.41, with a median of 5.29.

We should also highlight that BAMXF has a P/B ratio of 0.46. 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 stock's P/B looks solid versus its industry's average P/B of 0.84. Within the past 52 weeks, BAMXF's P/B has been as high as 0.76 and as low as 0.42, with a median of 0.52.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BAMXF has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.46.

Finally, our model also underscores that BAMXF has a P/CF ratio of 1.70. 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. BAMXF's current P/CF looks attractive when compared to its industry's average P/CF of 3.98. Over the past year, BAMXF's P/CF has been as high as 3.33 and as low as 1.57, with a median of 1.92.

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


See More Zacks Research for These Tickers


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


Bayerische Motoren Werke AG (BAMXF) - free report >>

Published in