Are Investors Undervaluing Marubeni (MARUY) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Marubeni (MARUY). MARUY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.24, while its industry has an average P/E of 20.32. Over the past 52 weeks, MARUY's Forward P/E has been as high as 10.31 and as low as 3.94, with a median of 5.65.
We should also highlight that MARUY has a P/B ratio of 1.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.56. Over the past 12 months, MARUY's P/B has been as high as 1.57 and as low as 0.70, with a median of 1.12.
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. MARUY has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.8.
Finally, investors will want to recognize that MARUY has a P/CF ratio of 6.05. 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. MARUY's current P/CF looks attractive when compared to its industry's average P/CF of 14.82. Over the past 52 weeks, MARUY's P/CF has been as high as 6.47 and as low as 2.76, with a median of 4.16.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Marubeni is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MARUY feels like a great value stock at the moment.
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Marubeni Corp. (MARUY) : Free Stock Analysis Report
