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 Wednesday, April 24, 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 2.45 compared to the industry median at 1.56, 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 6.10 compared to the industry median at 26.03. 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 2.67. 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 14.06. 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.

Blue Line Protection Group Inc’s Value Grade

Value Grade:

Blue Line Protection Group, Inc. provides armed protection and transportation, currency processing and training, and compliance services for businesses engaged in the legal cannabis industry. The Company provides logistics, and compliance services for businesses engaged in the legal cannabis industry. The Company offers asset logistic services, such as armed transportation service, including shipment protection, money escorts, asset vaulting, financial services, such as handling transportation and storage of currency; training; and compliance services. It offers a fully integrated approach to managing the movement of cannabis and cash from growers through dispensaries via armed and armored transport, currency processing, vaulting and related credit. It supplies asset protection via armored transportation and currency processing services to licensees in Colorado, Arizona, Nevada, and New Mexico, out of its two business locations.

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.

Blue Line Protection Group Inc has a Value Score of 99, which is considered to be undervalued.

Blue Line Protection Group Inc’s price-earnings ratio is 1.7 compared to the industry median at 26.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Blue Line Protection Group Inc more attractive for value investors.

You can read more about Blue Line Protection Group 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.

Euronet Worldwide Inc’s Value Grade

Value Grade:

Euronet Worldwide, Inc. is a global financial technology solutions and payments provider. The Company operates through three segments. Its Electronic Funds Transfer (EFT) segment meets the needs of financial institutions and consumers through Euronet-owned and outsourced ATMs and POS terminals combined with value-added and transaction processing services. EFT offers a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. Its epay segment provides retail payment solutions and delivers connections between the digital content of the brands and consumers. Its Money Transfer segment provides global money transfers and currency exchange information in retail stores, apps, and websites through Ria Money Transfer, Xe and the Dandelion cross-border real-time payments network. Its Money Transfer segment offers real-time, cross-border payments to consumers and businesses across over 198 countries and territories.

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.

Euronet Worldwide Inc has a Value Score of 63, which is considered to be undervalued.

Euronet Worldwide Inc’s price-earnings ratio is 19.4 compared to the industry median at 26.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Euronet Worldwide Inc more attractive for value investors.

Euronet Worldwide Inc’s price-to-book ratio is lower than its peers. This could make Euronet Worldwide Inc more attractive for value investors when compared to the industry median at 2.67.

You can read more about Euronet Worldwide 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.

Team Inc’s Value Grade

Value Grade:

Team, Inc. is a provider of specialty industrial services. The Company offers its clients access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services. The Company’s segments include Inspection and Heat Treating (IHT) and Mechanical Services (MS). IHT provides conventional and advanced non-destructive testing services primarily for the process, pipeline and power sectors, pipeline integrity management services, and field heat treating services, as well as associated engineering and condition assessment services. IHT also provides non-destructive testing services and metallurgical and chemical processing services. MS provides solutions designed to serve clients' needs during both the operational (onstream) and off-line states of their assets. Its onstream services include a range of standard custom-engineered leak repair and composite solutions, and hot tapping and line stopping, and on-line valve insertion 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.

Team Inc has a Value Score of 81, which is considered to be undervalued.

Team Inc’s price-to-book ratio is higher than its peers. This could make Team Inc less attractive for value investors when compared to the industry median at 2.67.

You can read more about Team 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.

Usio Inc’s Value Grade

Value Grade:

Usio, Inc. is a cloud-based, Fintech payment processor. It serves multiple industry verticals with technology that facilitates payment acceptance and funds disbursement in a single, full-stack ecosystem. It provides payment acceptance through multiple payment methods, including payment facilitation, prepaid card and electronic billing products and services to businesses, merchants and consumers. Through its Prepaid Debit Card platform, it offers a variety of prepaid card products, such as reloadable, incentive, promotional and corporate card programs. It provides integrated electronic payment processing services to merchants and businesses, including credit and debit card-based processing services and electronic funds transfer via the ACH network. Its card-based processing services enable merchants to process both traditional card-present, tap-and-pay, or swipe transactions, and card-not-present transactions. Its UsioCard platform supports Apple Pay, Samsung Pay and Google Pay.

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.

Usio Inc has a Value Score of 62, which is considered to be undervalued.

Usio Inc’s price-to-book ratio is higher than its peers. This could make Usio Inc less attractive for value investors when compared to the industry median at 2.67.

You can read more about Usio 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.

Willis Lease Finance Corporation’s Value Grade

Value Grade:

Willis Lease Finance Corporation, along with its subsidiaries, is a lessor and servicer of commercial aircraft and aircraft engines. The Company operates through two segments: Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment involves acquiring and leasing, primarily pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses. The Spare Parts Sales segment involves the purchase and resale of after-market engine parts, whole engines, engine modules and portable aircraft components. The Spare Parts Sales segment also enables the Company to provide end-of-life solutions for surplus aircraft and engines, as well as manage the full lifecycle of its lease assets. Its subsidiaries include WEST Engine Funding LLC, Willis Aeronautical Services, Inc. and Willis Asset Management Limited.

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.

Willis Lease Finance Corporation has a Value Score of 84, which is considered to be undervalued.

Willis Lease Finance Corporation’s price-earnings ratio is 7.9 compared to the industry median at 26.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Willis Lease Finance Corporation more attractive for value investors.

Willis Lease Finance Corporation’s price-to-book ratio is higher than its peers. This could make Willis Lease Finance Corporation less attractive for value investors when compared to the industry median at 2.67.

You can read more about Willis Lease Finance Corporation’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.

Scworx Corp’s Value Grade

Value Grade:

SCWorx Corp. is a provider of data content and services related to the repair, normalization and interoperability of information for healthcare providers, as well as big data analytics. for the healthcare industry. The Company is engaged in developing and marketing health care information technology solutions and associated services that improve healthcare processes and information flow within hospitals and other healthcare facilities. Its software enables a healthcare provider to simplify and organize its data; allows the data to be utilized across multiple internal software applications and provides the basis for sophisticated data analytics. Its software solution modules include virtualized item master file repair, expansion, and automation; electronic medical record management; charge description master (CDM) management; contract management; request for proposal (RFP) automation; rebate management; big data analytics modeling, and data integration and warehousing.

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.

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

Scworx Corp’s price-to-book ratio is higher than its peers. This could make Scworx Corp less attractive for value investors when compared to the industry median at 2.67.

You can read more about Scworx 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.
• Blue Line Protection Group Inc stock has a Value Grade of A.
• Euronet Worldwide Inc stock has a Value Grade of B.
• Team Inc stock has a Value Grade of A.
• Usio Inc stock has a Value Grade of B.
• Willis Lease Finance Corporation stock has a Value Grade of A.
• Scworx 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 Wednesday, April 24
• 5 Undervalued Business Support Services Stocks for Tuesday, April 23
• What You Need to Know About Fiserv Inc's Q1 Earnings
• What You Need to Know About Herc Holdings Inc's Q1 Earnings

AAII Disclaimer

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