Should Value Investors Buy Internet Initiative Japan (IIJIY) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Internet Initiative Japan (IIJIY). IIJIY 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 23.84, which compares to its industry's average of 31.46. Over the past year, IIJIY's Forward P/E has been as high as 25.10 and as low as 17.56, with a median of 20.16.
Investors should also note that IIJIY holds a PEG ratio of 1.60. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IIJIY's PEG compares to its industry's average PEG of 1.74. Over the last 12 months, IIJIY's PEG has been as high as 1.66 and as low as 1.30, with a median of 1.44.
We should also highlight that IIJIY has a P/B ratio of 1.82. 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 5.35. Over the past year, IIJIY's P/B has been as high as 1.88 and as low as 1.17, with a median of 1.41.
These are only a few of the key metrics included in Internet Initiative Japan's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IIJIY looks like an impressive value stock at the moment.
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