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Are Investors Undervaluing Yara International ASA (YARIY) Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Yara International ASA (YARIY - Free Report) . YARIY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.44, while its industry has an average P/E of 12.65. Over the past year, YARIY's Forward P/E has been as high as 30.27 and as low as 6.50, with a median of 10.20.

We should also highlight that YARIY has a P/B ratio of 0.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. YARIY's current P/B looks attractive when compared to its industry's average P/B of 2.12. Over the past year, YARIY's P/B has been as high as 1.45 and as low as 0.93, with a median of 1.14.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. YARIY has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.88.

Finally, we should also recognize that YARIY has a P/CF ratio of 7.19. 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. YARIY's current P/CF looks attractive when compared to its industry's average P/CF of 15.41. Over the past 52 weeks, YARIY's P/CF has been as high as 8.55 and as low as 4.56, with a median of 7.30.

These are only a few of the key metrics included in Yara International ASA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, YARIY looks like an impressive value stock at the moment.


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