The Evraz share price has been a stand-out performer in 2019, boasting a three-month relative strength of 31.9% against an already strong market.
Despite this improvement, the steel and iron manufacturer and miner continues to look conventionally cheap across a range of metrics. Many of these measures are inputs into Stockopedia's composite Value Rank, which orders stocks according to cheapness, so this might be a useful way to gauge the attractiveness of this miner's shares.
More specifically, the Value Rank is composed of the following ratios:
- Price to Book Value
- Price to Earnings
- Price to Free Cash Flow
- Dividend Yield %
- Price to Sales
- Earnings Yield %
The Value Rank: how does Evraz stack up?
We can see by using Evraz’s StockReport that the group has a:
- Rolling price to book value of 7.44,
- Rolling price to earnings ratio of 5.76
- Trailing twelve-month price to free cash flow of 5.92
- Rolling dividend yield of 11.9%
- Trailing twelve-month price to sales ratio of 0.97
When we add all of these together, we find that Evraz has a Value Rank of 87. Investing in high-value stocks requires finesse and a sturdy constitution but, when cheap stocks come good, the payoff can be large and sudden - Evraz's recent share price performance being a case in point. The question is whether this can continue.
A smarter way to invest in value stocks is to find the best quality value stocks or value stocks whose share prices are turning around - history shows that you can do much better than a passive investor by combining factors, so it makes sense to consider Evraz’s Value Rank alongside its Momentum and Quality Ranks. You can see these Ranks on the group's StockReport page.
Disclaimer: These articles are provided for information purposes only. The content is not intended to be a personal recommendation. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. The author has no position in the stocks mentioned, unless otherwise stated.