Yahoo Finance Should Value Investors Buy Marubeni (MARUY) Stock?
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.
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.
Marubeni (MARUY) is a stock many investors are watching right now. MARUY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.13, which compares to its industry's average of 18.57. Over the past 52 weeks, MARUY's Forward P/E has been as high as 7.34 and as low as 3.83, with a median of 5.06.
Investors should also recognize that MARUY has a P/B ratio of 1.20. Investors use the P/B ratio to look at a stock's market value versus 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 2.87. Within the past 52 weeks, MARUY's P/B has been as high as 1.24 and as low as 0.70, with a median of 0.89.
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. MARUY has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.77.
Finally, our model also underscores that MARUY has a P/CF ratio of 4.50. 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 P/CF compares to its industry's average P/CF of 15.87. MARUY's P/CF has been as high as 4.64 and as low as 2.67, with a median of 3.55, all within the past year.
These are just a handful of the figures considered in Marubeni's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MARUY is an impressive value stock right now.
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Marubeni Corp. (MARUY) : Free Stock Analysis Report
