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Are Investors Undervaluing Repsol (REPYY) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Repsol (REPYY - Free Report) is a stock many investors are watching right now. REPYY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 3.78, which compares to its industry's average of 7.41. Over the last 12 months, REPYY's Forward P/E has been as high as 7 and as low as 2.94, with a median of 4.57.

Investors will also notice that REPYY has a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. REPYY's industry currently sports an average PEG of 0.53. Over the last 12 months, REPYY's PEG has been as high as 1.22 and as low as 0.11, with a median of 0.44.

Investors should also recognize that REPYY has a P/B ratio of 0.81. 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 1.60. Within the past 52 weeks, REPYY's P/B has been as high as 0.96 and as low as 0.61, with a median of 0.74.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. REPYY has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.49.

Finally, investors will want to recognize that REPYY has a P/CF ratio of 3.20. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.79. REPYY's P/CF has been as high as 5.26 and as low as 2.37, with a median of 3.53, all within the past year.

Another great Oil and Gas - Integrated - International stock you could consider is YPF Sociedad Anonima (YPF - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

YPF Sociedad Anonima sports a P/B ratio of 0.30 as well; this compares to its industry's price-to-book ratio of 1.60. In the past 52 weeks, YPF's P/B has been as high as 0.32, as low as 0.11, with a median of 0.20.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Repsol and YPF Sociedad Anonima are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, REPYY and YPF feels like a great value stock at the moment.


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