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Why Marlin Business Services Corp (NASDAQ:MRLN) Could Be A Buy

Blake Harford

Marlin Business Services Corp (NASDAQ:MRLN), a diversified financial company based in United States, saw a significant share price rise of over 20% in the past couple of months on the NasdaqGS. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Marlin Business Services’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Marlin Business Services

What’s the opportunity in Marlin Business Services?

Good news, investors! Marlin Business Services is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $32.6, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Marlin Business Services’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Marlin Business Services?

NasdaqGS:MRLN Future Profit Mar 6th 18
NasdaqGS:MRLN Future Profit Mar 6th 18

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. With profit expected to grow by 46.92% over the next couple of years, the future seems bright for Marlin Business Services. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since MRLN is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MRLN for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MRLN. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Marlin Business Services. You can find everything you need to know about Marlin Business Services in the latest infographic research report. If you are no longer interested in Marlin Business Services, 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.