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Are Investors Undervaluing International Money Express (IMXI) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 International Money Express (IMXI - Free Report) . IMXI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.06 right now. For comparison, its industry sports an average P/E of 24.32. Over the past year, IMXI's Forward P/E has been as high as 12.68 and as low as 7.65, with a median of 10.05.

Another valuation metric that we should highlight is IMXI's P/B ratio of 5.22. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 7.47. Over the past 12 months, IMXI's P/B has been as high as 6.37 and as low as 3.57, with a median of 4.89.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 1.17. This compares to its industry's average P/S of 3.27.

Finally, we should also recognize that IMXI has a P/CF ratio of 10.93. 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. IMXI's P/CF compares to its industry's average P/CF of 19.22. Within the past 12 months, IMXI's P/CF has been as high as 14.57 and as low as 8.50, with a median of 10.81.

PagSeguro Digital (PAGS - Free Report) may be another strong Financial Transaction Services stock to add to your shortlist. PAGS is a # 1 (Strong Buy) stock with a Value grade of A.

PagSeguro Digital is currently trading with a Forward P/E ratio of 11 while its PEG ratio sits at 0.77. Both of the company's metrics compare favorably to its industry's average P/E of 24.32 and average PEG ratio of 1.51.


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