Is Medallion Financial (MFIN) a Great Value Stock Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Medallion Financial (MFIN) is a stock many investors are watching right now. MFIN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 4.30, while its industry has an average P/E of 7.43. Over the past year, MFIN's Forward P/E has been as high as 7.31 and as low as 3.66, with a median of 5.34.
Another valuation metric that we should highlight is MFIN's P/B ratio of 0.50. 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. MFIN's current P/B looks attractive when compared to its industry's average P/B of 0.90. Within the past 52 weeks, MFIN's P/B has been as high as 0.62 and as low as 0.36, with a median of 0.48.
Finally, investors will want to recognize that MFIN has a P/CF ratio of 2.96. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.44. MFIN's P/CF has been as high as 3.66 and as low as 2.10, with a median of 2.67, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Medallion Financial is likely undervalued currently. And when considering the strength of its earnings outlook, MFIN sticks out at as one of the market's strongest value stocks.
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Medallion Financial Corp. (MFIN) : Free Stock Analysis Report
