Are Investors Undervaluing Internet Initiative Japan (IIJIY) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
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.
One stock to keep an eye on is Internet Initiative Japan (IIJIY). IIJIY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is IIJIY's P/B ratio of 4.08. 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. This stock's P/B looks attractive against its industry's average P/B of 5.48. Within the past 52 weeks, IIJIY's P/B has been as high as 4.70 and as low as 2.84, with a median of 3.76.
Finally, our model also underscores that IIJIY has a P/CF ratio of 10.37. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. IIJIY's P/CF compares to its industry's average P/CF of 16.92. Over the past 52 weeks, IIJIY's P/CF has been as high as 10.53 and as low as 7.12, with a median of 9.07.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Internet Initiative Japan is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IIJIY feels like a great value stock at the moment.
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Internet Initiative Japan, Inc. (IIJIY) : Free Stock Analysis Report