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, June 05, 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.

ABM Industries Inc’s Value Grade

Value Grade:

ABM Industries Incorporated, which operates through its subsidiaries, is a provider of integrated facility, infrastructure, and mobility solutions. Its segments include Business & Industry (B&I;), Manufacturing & Distribution (M&D;), Education, Aviation, and Technical Solutions. The B&I; segment encompasses janitorial, facilities engineering, and parking services for commercial real estate properties, sports and entertainment venues, and other facilities. The M&D; segment provides integrated facility services, engineering, janitorial, and other specialized services. The Education segment delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services. The Aviation segment supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation. The Technical Solutions segment specializes in facility infrastructure, mechanical and electrical 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.

ABM Industries Inc has a Value Score of 83, which is considered to be undervalued.

When you look at ABM Industries Inc’s price-to-sales ratio at 0.37 compared to the industry median at 1.41, this company has a lower price relative to revenue compared to its peers. This could make ABM Industries Inc’s stock more attractive for value investors.

ABM Industries Inc’s price-earnings ratio is 12.15 compared to the industry median at 22.73. This means it has a lower share price relative to earnings compared to its peers. This could make ABM Industries Inc more attractive for value investors.

Now, let’s assess ABM Industries Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 7.3, when compared to the industry median of 11.7, 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. ABM Industries 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. ABM Industries Inc’s price-to-book ratio is lower than its industry median ratio of 2.65. This could make ABM Industries Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at ABM Industries Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. ABM Industries Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 16.75. This could make ABM Industries Inc more attractive because the lower P/FCF ratio indicates that ABM Industries Inc 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 98, which is considered to be undervalued.

Blue Line Protection Group Inc’s price-earnings ratio is 3.4 compared to the industry median at 22.7. 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.

C3is Inc’s Value Grade

Value Grade:

C3is Inc. is a Greece-based entity, incorporated in Marshall Islands, primarily engaged in seaborne transportation services to drybulk charterer for both national and private clients. The Company acts as a holding company and operates through its two subsidiaries. The Company's fleet consists of two handysize drybulk carriers: Eco Bushfire and Eco Angelbay.

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.

C3is Inc has a Value Score of 80, which is considered to be undervalued.

C3is Inc’s price-to-book ratio is higher than its peers. This could make C3is Inc less attractive for value investors when compared to the industry median at 2.65.

You can read more about C3is 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.

Herc Holdings Inc’s Value Grade

Value Grade:

Herc Holdings Inc. is an equipment rental supplier. The Company offers a portfolio of equipment for rent. In addition to its principal business of equipment rental, the Company sells used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; offers equipment re-rental services and provides on-site support to its customers, and provides ancillary services such as equipment transport, rental protection, cleaning, refueling and labor. Its fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction and lighting. Its ProContractor business focuses on professional-grade tools and equipment, and offers industry-specific solutions-based services, which include power generation, climate control, remediation and restoration, pumps, trench shoring, studio and production equipment.

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.

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

Herc Holdings Inc’s price-earnings ratio is 11.2 compared to the industry median at 22.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Herc Holdings Inc more attractive for value investors.

Herc Holdings Inc’s price-to-book ratio is lower than its peers. This could make Herc Holdings Inc more attractive for value investors when compared to the industry median at 2.65.

You can read more about Herc Holdings 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.

Lesaka Technologies Inc’s Value Grade

Value Grade:

Lesaka Technologies, Inc. is a South Africa-based financial technology (Fintech) company. The Company utilizes its proprietary banking and payment technologies to deliver financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. It offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-added services to formal and informal retail merchants as well as banking, lending, and insurance solutions to consumers across Southern Africa. The Company operates through two segments: Consumer and Merchant. The Consumer segment includes activities related to the provision of financial services to customers. Its products include transactional banking, short-term loans, a digital wallet as well as insurance and various value-added services (VAS) to underserved consumers in South Africa. The Merchant segment includes activities related to the provision of goods and services provided to corporate and other juristic entities.

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.

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

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

You can read more about Lesaka Technologies 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.

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 69, which is considered to be undervalued.

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

You can read more about Onfolio Holdings 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.

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 2.65.

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.

• ABM Industries Inc stock has a Value Grade of A.
• Blue Line Protection Group Inc stock has a Value Grade of A.
• C3is Inc stock has a Value Grade of B.
• Herc Holdings Inc stock has a Value Grade of A.
• Lesaka Technologies Inc stock has a Value Grade of B.
• Onfolio Holdings Inc stock has a Value Grade of B.
• 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, June 05
• 7 Undervalued Business Support Services Stocks for Tuesday, June 04
• Why Emerald Holding Inc’s (EEX) Stock Is Down 4.63%
• 3 Undervalued Business Support Services Stocks for Monday, June 03

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.