Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Business Support Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Business Support Services Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Business Support Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Business Support Services industry for Thursday, March 14, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Business Support Services industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

AerCap Holdings N.V.’s Value Grade

Value Grade:

AerCap Holdings N.V. is an Ireland-based company, which is primarily engaged in aviation leasing. The Company provides a range of assets for lease, including narrowbody and widebody aircraft, regional jets, freighters, engines, and helicopters. Its offering includes new and used commercial passenger and cargo aircraft, and helicopters, on operating lease from its existing fleet and order book. In addition, it offers aftermarket components, equipment and services through its materials business and the lease, purchase and financing of spare engines. It also provides aircraft owners, financiers and investors with all asset services necessary to manage an aircraft, engines and helicopter portfolio. The Company has a portfolio of approximately 1,740 aircraft, over 900 engines and over 300 helicopters, and an order book of more than 400 of in-demand aircraft in the world. The Company serves approximately 300 customers around the world with comprehensive fleet solutions.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

AerCap Holdings N.V. has a Value Score of 87, which is considered to be undervalued.

When you look at AerCap Holdings N.V.’s price-to-sales ratio at 2.40 compared to the industry median at 1.53, this company has a higher price relative to revenue compared to its peers. This could make AerCap Holdings N.V.’s stock less attractive for value investors.

AerCap Holdings N.V.’s price-earnings ratio is 5.95 compared to the industry median at 26.67. This means it has a lower share price relative to earnings compared to its peers. This could make AerCap Holdings N.V. more attractive for value investors.

Now, let’s assess AerCap Holdings N.V.’s EV/EBITDA ratio, also known as enterprise multiple. At 10.1, when compared to the industry median of 11.1, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. AerCap Holdings N.V.’s shareholder yield is higher than its industry median ratio of 0.00%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. AerCap Holdings N.V.’s price-to-book ratio is lower than its industry median ratio of 2.77. This could make AerCap Holdings N.V. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at AerCap Holdings N.V.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. AerCap Holdings N.V.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 13.90. This could make AerCap Holdings N.V. more attractive because the lower P/FCF ratio indicates that AerCap Holdings N.V. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

American Shared Hospital Services’s Value Grade

Value Grade:

American Shared Hospital Services is a provider of financial and turnkey solutions to cancer treatment centers, hospitals, and large cancer networks worldwide. The Company's products include MR Guided Radiation Therapy Linacs, Advanced Linear Accelerators, Proton Beam Radiation Therapy Operations (PBRT), Brachytherapy systems, and through the Company's GK Financing partnership with Elekta, the Leksell Gamma Knife product and services. The Gamma Knife radiosurgery equipment is a non-invasive treatment for malignant and benign brain tumors, vascular malformations, and trigeminal neuralgia (facial pain). The PBRT is an alternative to traditional external beam, photon-based radiation delivered by linear accelerators. PBRT treats prostate, brain, spine, head and neck, lung, breast, gastrointestinal tract, and pediatric tumors. The Company typically provides the equipment, as well as planning, installation, reimbursement and marketing support services.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

American Shared Hospital Services has a Value Score of 74, which is considered to be undervalued.

American Shared Hospital Services’s price-earnings ratio is 39.0 compared to the industry median at 26.7. This means that it has a higher price relative to its earnings compared to its peers. This makes American Shared Hospital Services less attractive for value investors.

American Shared Hospital Services’s price-to-book ratio is higher than its peers. This could make American Shared Hospital Services less attractive for value investors when compared to the industry median at 2.77.

You can read more about American Shared Hospital Services’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

CLARIVATE PLC’s Value Grade

Value Grade:

Clarivate Plc is an information services provider. The Company provides information, analytics, professional services and workflow solutions that enable users across government and academic institutions, life science and healthcare companies, corporations and law firms to power the entire lifecycle, from cultivating curiosity to protecting critical intellectual property assets. Its segments include Academia & Government (A&G;), Intellectual Property (IP), and Life Sciences & Healthcare (LS&H;). The A&G; segment provides curated, structured content, discovery solutions and related software applications that are embedded into the workflows of its customers, which include libraries, universities and research institutions. Its IP segment consists of patents, trademarks, and IP management products and solutions. The LS&H; segment contains its products and solutions, which serve the content and analytical needs of pharmaceutical and biotechnology companies across the drug development lifecycle.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CLARIVATE PLC has a Value Score of 63, which is considered to be undervalued.

CLARIVATE PLC’s price-to-book ratio is higher than its peers. This could make CLARIVATE PLC less attractive for value investors when compared to the industry median at 2.77.

You can read more about CLARIVATE PLC’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

CompoSecure Inc’s Value Grade

Value Grade:

CompoSecure, Inc. is a technology partner to fintechs and consumers around the globe. The Company is a provider of premium financial payment cards and cryptocurrency and digital asset storage and security solutions. Its payment card technology and metal cards with Arculus security and authentication capabilities delivers premium branded experiences, enable people to access and use their financial and digital assets, and ensure trust at the point of a transaction. The Company designs and manufactures metal cards, which includes contact and dual interface cards. Its primary metal form factors include Embedded Metal, Metal Veneer Lite, Metal Veneer and Full Metal. The Arculus platform is offered through partner-branded solutions, which include a partner-branded version of the Arculus Key card, as well as some or all of the Arculus Cold Storage Wallet and other Arculus products and/or services. Its clients include international, foreign and domestic banks, and other credit card issuers.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CompoSecure Inc has a Value Score of 72, which is considered to be undervalued.

CompoSecure Inc’s price-earnings ratio is 4.7 compared to the industry median at 26.7. This means that it has a lower price relative to its earnings compared to its peers. This makes CompoSecure Inc more attractive for value investors.

You can read more about CompoSecure Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Corecivic Inc’s Value Grade

Value Grade:

CoreCivic, Inc. is a diversified, government-solutions company. The Company provides a broad range of solutions to government partners that serve the public good through corrections and detention management. Its segments include CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. CoreCivic Safety segment consists of approximately 43 correctional and detention facilities that are owned, or controlled via a long-term lease, and managed by CoreCivic, as well as those correctional and detention facilities owned by third parties but managed by CoreCivic. CoreCivic Safety also includes the operating results of its subsidiary that provides transportation services to governmental agencies, TransCor America, LLC. CoreCivic Community segment consists of the residential reentry centers that are owned, or controlled via a long-term lease, and managed by CoreCivic. CoreCivic Properties segment consists of the real estate properties owned by CoreCivic and leased to government agencies.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Corecivic Inc has a Value Score of 69, which is considered to be undervalued.

Corecivic Inc’s price-earnings ratio is 25.0 compared to the industry median at 26.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Corecivic Inc more attractive for value investors.

Corecivic Inc’s price-to-book ratio is higher than its peers. This could make Corecivic Inc less attractive for value investors when compared to the industry median at 2.77.

You can read more about Corecivic Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Guardforce AI Co Ltd’s Value Grade

Value Grade:

Guardforce AI Co., Limited is an integrated security solutions provider. The Company is focused on developing robotic solutions and information security services that complement its secured logistics business. Its businesses are categorized into three main units: Secured Logistics Business, Robotics Solution Business and Information Security Business. Its Secured Logistics Business include Cash-In-Transit-Non-Dedicated Vehicle (Non-DV); Cash-In-Transit - Dedicated Vehicle (DV); ATM management; Cash Processing (CPC); Cash Center Operations (CCT); Consolidate Cash Center Operations (CCC); Cheque Center Service (CDC); Express Cash; Coin Processing Service, and Cash Deposit Management Solutions (GDM). It has three robotics products: Reception Robot (T - Series) for indoor stationary applications, Disinfection Robots (S - Series) and Delivery Robot (D - Series) for indoor applications.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Guardforce AI Co Ltd has a Value Score of 63, which is considered to be undervalued.

Guardforce AI Co Ltd’s price-to-book ratio is higher than its peers. This could make Guardforce AI Co Ltd less attractive for value investors when compared to the industry median at 2.77.

You can read more about Guardforce AI Co Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Nuvei Corp’s Value Grade

Value Grade:

Nuvei Corporation is a fintech company. The Company provides electronic payment technology solutions to merchants and partners in North America, Europe, Middle East and Africa, Latin America and Asia-Pacific. Its solutions span the entire payments stack and include an integrated payments engine with global processing capabilities and a suite of data-driven business intelligence tools and risk management services. The Company platform provides pay-in and payout capabilities, connecting merchants with their customers in over 200 markets worldwide. Its platform supports for more than 634 alternative payment methods, and over 150 currencies. It also enables online payments, mobile payment and in-store payments. Its platform enables customers to accept payments worldwide regardless of their customers’ location, device or preferred payment method. Its technology includes gateway, currency management, global payouts, card issuing, open banking, data reporting and reconciliation tools.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Nuvei Corp has a Value Score of 65, which is considered to be undervalued.

Nuvei Corp’s price-to-book ratio is higher than its peers. This could make Nuvei Corp less attractive for value investors when compared to the industry median at 2.77.

You can read more about Nuvei Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Business Support Services Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Business Support Services stocks as well as other industrys.

Choosing Which of the 7 Best Business Support Services Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• AerCap Holdings N.V. stock has a Value Grade of A.
• American Shared Hospital Services stock has a Value Grade of B.
• CLARIVATE PLC stock has a Value Grade of B.
• CompoSecure Inc stock has a Value Grade of B.
• Corecivic Inc stock has a Value Grade of B.
• Guardforce AI Co Ltd stock has a Value Grade of B.
• Nuvei Corp stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Business Support Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Business Support Services Stocks

Want to learn more about Business Support Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Business Support Services Stocks for Thursday, March 14
• 3 Undervalued Business Support Services Stocks for Wednesday, March 13
• Why Block Inc’s (SQ) Stock Is Up 4.91%
• Why PayPal Holdings Inc’s (PYPL) Stock Is Up 4.03%

AAII Disclaimer

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