Is Medallion Financial (MFIN) Stock Undervalued Right Now?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Medallion Financial (MFIN). MFIN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.15, which compares to its industry's average of 7.58. Over the last 12 months, MFIN's Forward P/E has been as high as 7.31 and as low as 3.66, with a median of 5.31.
Investors should also recognize that MFIN has a P/B ratio of 0.47. 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 stock's P/B looks solid versus its industry's average P/B of 0.91. 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 2.82. 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. MFIN's current P/CF looks attractive when compared to its industry's average P/CF of 10.63. Over the past year, MFIN's P/CF has been as high as 3.66 and as low as 2.10, with a median of 2.69.
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
