Is It The Right Time To Buy MoneyGram International Inc (NASDAQ:MGI)?
MoneyGram International Inc (NASDAQ:MGI), a it company based in United States, saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $11.37 and falling to the lows of $6.57. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether MoneyGram International’s current trading price of $6.95 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at MoneyGram International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for MoneyGram International
What is MoneyGram International worth?
According to my valuation model, MoneyGram International seems to be fairly priced at around 18.99% below my intrinsic value, which means if you buy MoneyGram International today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $8.58, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because MoneyGram International’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from MoneyGram International?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with a relatively muted revenue growth of 1.41% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for MoneyGram International, at least in the short term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in MGI’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on MGI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on MoneyGram International. You can find everything you need to know about MoneyGram International in the latest infographic research report. If you are no longer interested in MoneyGram International, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
