Are Investors Undervaluing Mosaic (MOS) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Mosaic (MOS) is a stock many investors are watching right now. MOS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.16, which compares to its industry's average of 12.40. Over the last 12 months, MOS's Forward P/E has been as high as 23.70 and as low as 6.80, with a median of 13.03.

We should also highlight that MOS has a P/B ratio of 1.46. 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. MOS's current P/B looks attractive when compared to its industry's average P/B of 1.84. Over the past year, MOS's P/B has been as high as 1.46 and as low as 0.73, with a median of 1.15.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. MOS has a P/S ratio of 1.6. This compares to its industry's average P/S of 1.8.

Finally, investors will want to recognize that MOS has a P/CF ratio of 6.70. 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. MOS's P/CF compares to its industry's average P/CF of 13.85. Over the past 52 weeks, MOS's P/CF has been as high as 19.85 and as low as 4.77, with a median of 6.88.

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

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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