Back to top

Is Cardtronics (CATM) a Great Value Stock Right Now?

Read MoreHide Full Article

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Cardtronics (CATM - Free Report) is a stock many investors are watching right now. CATM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.78. This compares to its industry's average Forward P/E of 22.29. Over the last 12 months, CATM's Forward P/E has been as high as 20.86 and as low as 10.78, with a median of 15.90.

Investors will also notice that CATM has a PEG ratio of 1.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CATM's PEG compares to its industry's average PEG of 1.53. CATM's PEG has been as high as 1.87 and as low as 0.96, with a median of 1.40, all within the past year.

Another notable valuation metric for CATM is its P/B ratio of 3.20. 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 attractive against its industry's average P/B of 9.44. CATM's P/B has been as high as 4.41 and as low as 2.29, with a median of 3.09, over the past year.

Finally, our model also underscores that CATM has a P/CF ratio of 6.07. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.25. Over the past year, CATM's P/CF has been as high as 7.71 and as low as 3.97, with a median of 5.45.

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

In-Depth Zacks Research for the Tickers Above

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

Cardtronics PLC (CATM) - free report >>

Published in