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Is Tokio Marine (TKOMY) Stock Undervalued Right Now?

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Tokio Marine (TKOMY) is a stock many investors are watching right now. TKOMY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.39. This compares to its industry's average Forward P/E of 26.72. Over the last 12 months, TKOMY's Forward P/E has been as high as 15.35 and as low as 9.20, with a median of 11.82.

Investors should also recognize that TKOMY has a P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TKOMY's current P/B looks attractive when compared to its industry's average P/B of 1.40. Over the past 12 months, TKOMY's P/B has been as high as 1.23 and as low as 0.93, with a median of 1.06.

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. TKOMY has a P/S ratio of 0.74. This compares to its industry's average P/S of 0.92.

Value investors will likely look at more than just these metrics, but the above data helps show that Tokio Marine is likely undervalued currently. And when considering the strength of its earnings outlook, TKOMY sticks out at as one of the market's strongest value stocks.


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