Back to top

Image: Bigstock

Should Value Investors Buy INTERNATIONAL MONEY EXPRESS, INC. (IMXI) Stock?

Read MoreHide Full Article

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.

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 company value investors might notice is INTERNATIONAL MONEY EXPRESS, INC. (IMXI - Free Report) . IMXI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.10 right now. For comparison, its industry sports an average P/E of 30.41. Over the past year, IMXI's Forward P/E has been as high as 20.32 and as low as 7.21, with a median of 12.79.

We also note that IMXI holds a PEG ratio of 0.79. 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. IMXI's industry currently sports an average PEG of 2.22. Over the last 12 months, IMXI's PEG has been as high as 0.88 and as low as 0.79, with a median of 0.85.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IMXI has a P/S ratio of 1.54. This compares to its industry's average P/S of 4.1.

Finally, investors should note that IMXI has a P/CF ratio of 13.76. 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. IMXI's current P/CF looks attractive when compared to its industry's average P/CF of 29.83. Within the past 12 months, IMXI's P/CF has been as high as 23.04 and as low as 8.35, with a median of 14.20.

Value investors will likely look at more than just these metrics, but the above data helps show that INTERNATIONAL MONEY EXPRESS, INC. Is likely undervalued currently. And when considering the strength of its earnings outlook, IMXI sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


INTERNATIONAL MONEY EXPRESS, INC. (IMXI) - free report >>

Published in