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Is Ezcorp (EZPW) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Ezcorp (EZPW - Free Report) . EZPW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 16.87, which compares to its industry's average of 20.58. Over the past year, EZPW's Forward P/E has been as high as 17.91 and as low as -61.20, with a median of 8.11.

Investors should also recognize that EZPW has a P/B ratio of 0.42. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.59. Over the past 12 months, EZPW's P/B has been as high as 0.54 and as low as 0.26, with a median of 0.42.

Finally, investors should note that EZPW has a P/CF ratio of 3.74. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EZPW's current P/CF looks attractive when compared to its industry's average P/CF of 4.46. Over the past 52 weeks, EZPW's P/CF has been as high as 4.58 and as low as 2.72, with a median of 3.74.

These are just a handful of the figures considered in Ezcorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EZPW is an impressive value stock right now.


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