Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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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5 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 5 undervalued stocks in the Business Support Services industry for Monday, May 06, 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.

Onfolio Holdings Inc’s Value Grade

Value Grade:

Onfolio Holdings Inc. is a holding company that acquires and manages a diversified portfolio of online businesses across a range of verticals. The Company is engaged in Website management, advertising and content placement on its online businesses, and product sales on certain sites. The Company owns multiple online businesses and manages online businesses on behalf of certain unconsolidated entities in which it holds equity interests. It operates through business models, such as direct-to-consumer (D2C) e-commerce, business-to-business (B2B) SEO and marketing services, as well as B2B digital products. The Company owns and/or manages over 20 online businesses, including RevenueZen.com, Contentellect.com, ProofreadAnywhere.com/WorkAtHomeSchool.com/WorkYourWay2020.com, SEOButler.com, Preventdirectaccess.com/Passwordprotectwp.com, Mightydeals.com and others. RevenueZen.com is an online service provider that works with B2B brands to grow their organic and referral traffic.

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.

Onfolio Holdings Inc has a Value Score of 91, which is considered to be undervalued.

When you look at Onfolio Holdings Inc’s price-to-sales ratio at 0.54 compared to the industry median at 1.54, this company has a lower price relative to revenue compared to its peers. This could make Onfolio Holdings Inc’s stock more attractive for value investors.

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. Onfolio Holdings Inc’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. Onfolio Holdings Inc’s price-to-book ratio is lower than its industry median ratio of 2.65. This could make Onfolio Holdings Inc more attractive to investors looking for a new addition to their portfolio.

PagSeguro Digital Ltd’s Value Grade

Value Grade:

PagSeguro Digital Ltd. is a disruptive provider of financial technology solutions focused primarily on consumers, individual entrepreneurs, micro-merchants, small companies, and medium-sized companies in Brazil. Its end-to-end digital ecosystem enables its merchants not only to accept payments, but also to grow and manage their businesses. It offers a two-sided ecosystem, providing banking and payments experience through a single interface, with one app, one platform and one customer support. Its digital banking ecosystem features its free PagBank digital account, under the brand PagBank, and offers about 40 cash-in methods and 13 cash-out options. Focusing primarily on individual entrepreneurs, micro-merchants, and small and medium-sized enterprises (SMEs), the Company offer a range of POS and mPOS devices specifically designed to fit their business needs. The Company’s end-to-end payments ecosystem enables its customers to accept a range of online and in-person payment methods.

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.

PagSeguro Digital Ltd has a Value Score of 84, which is considered to be undervalued.

PagSeguro Digital Ltd’s price-earnings ratio is 12.8 compared to the industry median at 25.2. This means that it has a lower price relative to its earnings compared to its peers. This makes PagSeguro Digital Ltd more attractive for value investors.

PagSeguro Digital Ltd’s price-to-book ratio is higher than its peers. This could make PagSeguro Digital Ltd less attractive for value investors when compared to the industry median at 2.65.

You can read more about PagSeguro Digital 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.

Starbox Group Holdings Ltd’s Value Grade

Value Grade:

Starbox Group Holdings Ltd. is engaged in building a cash rebate, advertising, payment solution, and software licensing business ecosystem targeting micro, small, and medium enterprises. Its segments include Cash rebate, payment solution, and media booking; Advertising services; Software licensing; Production services, and Marketing and Promotional campaign services. Through its subsidiaries in Malaysia, the Company connects retail merchants with retail shoppers to facilitate transactions through cash rebates offered by retail merchants, provides digital advertising services to advertisers, provides payment solution services to merchants, and license customized software systems to its clients. The Company cooperates with retail merchants, which have registered on the GETBATS Website and mobile app as merchants, to offer cash rebates on their products or services. It primarily distributes advertisements through its SEEBATS and GETBATS websites and mobile applications to its members.

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.

Starbox Group Holdings Ltd has a Value Score of 88, which is considered to be undervalued.

Starbox Group Holdings Ltd’s price-earnings ratio is 4.5 compared to the industry median at 25.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Starbox Group Holdings Ltd more attractive for value investors.

Starbox Group Holdings Ltd’s price-to-book ratio is higher than its peers. This could make Starbox Group Holdings Ltd less attractive for value investors when compared to the industry median at 2.65.

You can read more about Starbox Group Holdings 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.

Taskus Inc’s Value Grade

Value Grade:

TaskUs, Inc. is a provider of outsourced digital services and customer experience. The Company's global, omni-channel delivery model is focused on providing its clients three key services: Digital Customer Experience (Digital CX), Trust and Safety, and Artificial Intelligence (AI) services. The Company's Digital CX solutions include omni-channel customer care, learning experience, new product or market launches, sales and customer acquisition, and TaskUs Digital CX Consulting. Its Trust and Safety consists of two primary areas of service: content moderation and risk and response. Content moderation pertains to the review and disposition of user and advertiser generated content, which may include removal or labeling of policy violating, offensive or misleading content. The Company's AI services solutions include data annotation that refines large sets of training data for its clients by annotating videos, photos, audio clips and text based on their policy specifications.

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.

Taskus Inc has a Value Score of 65, which is considered to be undervalued.

Taskus Inc’s price-earnings ratio is 25.2 compared to the industry median at 25.2. This means that it has a higher price relative to its earnings compared to its peers. This makes Taskus Inc fairly attractive for value investors.

Taskus Inc’s price-to-book ratio is higher than its peers. This could make Taskus Inc less attractive for value investors when compared to the industry median at 2.65.

You can read more about Taskus 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 80, which is considered to be undervalued.

Willis Lease Finance Corporation’s price-earnings ratio is 9.0 compared to the industry median at 25.2. 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 2.65.

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.

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 5 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.

• Onfolio Holdings Inc stock has a Value Grade of A.
• PagSeguro Digital Ltd stock has a Value Grade of A.
• Starbox Group Holdings Ltd stock has a Value Grade of A.
• Taskus Inc stock has a Value Grade of B.
• Willis Lease Finance Corporation stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Business Support Services Stocks for Monday, May 06
• 7 Undervalued Business Support Services Stocks for Friday, May 03
• Why Verra Mobility Corp’s (VRRM) Stock Is Up 7.64%
• Why Willdan Group, Inc.’s (WLDN) Stock Is Up 9.87%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.