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 Tuesday, July 30, 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.

Onemednet Corp’s Value Grade

Value Grade:

OneMedNet Corporation is a curator of regulatory-grade Imaging Real World Data (RWD), through its OneMedNet iRWD solution. The Company provides solutions that unlock the significant value contained within the clinical image archives of healthcare providers. It de-identifies, searches, and curates a data archive locally, bringing a wealth of internal and third-party research opportunities to providers. By leveraging this extensive federated provider network, together with technology and in-house clinical expertise, the Company meets the rigorous RWD life science requirements. OneMedNet iRWD offers advanced technology, clinical expert curation, and service. Medical imaging and associated clinical data are indexed at each network site using artificial intelligence (AI)/ machine learning (ML) technology. This includes EHR, radiology, cardiology, lab, path, and others. In addition to its customized data packages, it also offers regulatory-grade, pre-packaged imaging RWD sets.

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.

Onemednet Corp has a Value Score of 73, which is considered to be undervalued.

When you look at Onemednet Corp’s price-to-sales ratio at 26.53 compared to the industry median at 1.70, this company has a higher price relative to revenue compared to its peers. This could make Onemednet Corp’s stock less 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. Onemednet Corp’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.

Lastly, let’s take a look at Onemednet Corp’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Onemednet Corp’s price-to-free-cash-flow ratio is lower than its industry median ratio of 16.54. This could make Onemednet Corp more attractive because the lower P/FCF ratio indicates that Onemednet Corp 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.

Pharma-Bio Serv Inc’s Value Grade

Value Grade:

Pharma-Bio Serv, Inc. is a compliance and technology transfer services consulting company. The Company operates through four segments: Puerto Rico technical compliance consulting, United States technical compliance consulting, Europe technical compliance consulting, and Puerto Rico microbiological and chemical laboratory testing division (Lab). The Company provides a range of compliance-related consulting services. The Company provides microbiological testing services and chemical testing services through its laboratory testing facility in Puerto Rico. The Company's technical consulting services include regulatory compliance, validation, technology transfer, engineering, project management and process support. The Company markets its services to pharmaceutical, chemical, biotechnology, medical devices, cosmetic and food industries, and allied products companies in Puerto Rico, the United States, Europe and Brazil.

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.

Pharma-Bio Serv Inc has a Value Score of 74, which is considered to be undervalued.

Pharma-Bio Serv Inc’s price-to-book ratio is higher than its peers. This could make Pharma-Bio Serv Inc less attractive for value investors when compared to the industry median at 2.97.

You can read more about Pharma-Bio Serv 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.

Senstar Technologies Ltd’s Value Grade

Value Grade:

Senstar Technologies Ltd, formerly known as Magal Security Systems Ltd, is an Israel-based security solutions provider. The Company provides comprehensive physical, video and access control security products and solutions as well as critical site management. Senstar Technologies Ltd delivers its products as well as tailormade security solutions and turnkey projects to customers in worldwide.

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.

Senstar Technologies Ltd has a Value Score of 62, which is considered to be undervalued.

Senstar Technologies Ltd’s price-to-book ratio is higher than its peers. This could make Senstar Technologies Ltd less attractive for value investors when compared to the industry median at 2.97.

You can read more about Senstar Technologies 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.

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 83, 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 2.97.

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.

VCI Global Ltd’s Value Grade

Value Grade:

VCI Global Limited is a Malaysia-based diversified holding company. Through its subsidiaries, the Company focuses on consulting, fintech, artificial intelligence (AI), robotics, cybersecurity, and gamification. It primarily offers consulting services in capital markets, real estate, AI, and technology. Under its business strategy consultancy segment, the Company focuses on listing solutions, investors relations and boardroom strategies consultancy. It begins from pre-listing diagnosis and planning to the finalization of the entire listing process. It extends its services line to include investor relations consultation. Further, it also offers services in attaining boardroom strategies. Its strategic options consist of mergers and acquisitions, initial public offerings, restructuring and transformation. It also operates Socializer Messenger, which offers built-in face recognition, self-destructing messages, and additional app lock to shield the conversations from unauthorized access.

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.

VCI Global Ltd has a Value Score of 87, which is considered to be undervalued.

VCI Global Ltd’s price-earnings ratio is 1.6 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 VCI Global Ltd more attractive for value investors.

VCI Global Ltd’s price-to-book ratio is higher than its peers. This could make VCI Global Ltd less attractive for value investors when compared to the industry median at 2.97.

You can read more about VCI Global 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.

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.

• Onemednet Corp stock has a Value Grade of B.
• Pharma-Bio Serv Inc stock has a Value Grade of B.
• Senstar Technologies Ltd stock has a Value Grade of B.
• Usio Inc stock has a Value Grade of A.
• VCI Global Ltd stock has a Value Grade of A.

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 Tuesday, July 30
• 7 Undervalued Business Support Services Stocks for Monday, July 29
• 4 Undervalued Business Support Services Stocks for Friday, July 26
• Why Healthcare Services Group, Inc.’s (HCSG) Stock Is Up 5.19%

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.