Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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.

Latest Business Support Services Stock News

Before choosing which top Business Support Services stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The fundamental outlook for the business support services industry is neutral. Participants across the sub-industry carry out a wide scope of applications, including payments for goods and services, human resource (HR) payroll processing, and outsourcing. A variety of factors including inflation, pandemic-related impacts and geopolitical tensions have created a difficult set of obstacles for companies to maneuver. However, companies have largely recovered from pandemic-related impacts. Companies overly exposed to consumer groups have experienced larger inflationary pressures. Contractionary measures such as the Federal Reserve continuing to raise interest rates could further dampen consumer spending. It will be important that no other exogenous events emerge, such as intensified geopolitical conflicts disrupting the ongoing recovery in TPV (third party verification), employment levels, etc. Underlying payment economics likely flip to tailwinds as value-added services (VAS) revenue lines help fill the void and provide a “cushion” for upside, especially if other verticals or regions temporarily relax in the interim.

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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6 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 6 undervalued stocks in the Business Support Services industry for Friday, February 03, 2023. 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.

American Shared Hospital Services’s Value Grade

Value Grade:

American Shared Hospital Services is a provider of turnkey technology solutions for stereotactic radiosurgery and advanced radiation therapy equipment and services. The Company is a provider of Gamma Knife radiosurgery equipment, a non-invasive treatment for malignant and benign brain tumors, vascular malformations, and trigeminal neuralgia (facial pain). It can be an adjunct to conventional brain surgery, radiation therapy or chemotherapy. Typically, Gamma Knife patients resume their pre-surgical activities one or two days after treatment. The Company also offers proton therapy, and the IGRT, IMRT and MR/LINAC systems. The Company provides Gamma Knife units to approximately 12 medical centers in 11 states in the United States and two Gamma Knife units at stand-alone facilities in Lima, Peru and Guayaquil, Ecuador. The Company’s subsidiaries include American Shared Radiosurgery Services (ASRS), OR21, Inc. and MedLeader.com, Inc. (MedLeader).

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 83, which is considered to be undervalued.

When you look at American Shared Hospital Services’s price-to-sales ratio at 1.03 compared to the industry median at 2.14, this company has a lower price relative to revenue compared to its peers. This could make American Shared Hospital Services’s stock more attractive for value investors.

American Shared Hospital Services’s price-earnings ratio is 15.59 compared to the industry median at 22.93. This means it has a lower share price relative to earnings compared to its peers. This could make American Shared Hospital Services more attractive for value investors.

Now, let’s assess American Shared Hospital Services’s EV/EBITDA ratio, also known as enterprise multiple. At 2.8, 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. American Shared Hospital Services’s shareholder yield is lower 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. American Shared Hospital Services’s price-to-book ratio is lower than its industry median ratio of 2.52. This could make American Shared Hospital Services more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at American Shared Hospital Services’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. American Shared Hospital Services’s price-to-free-cash-flow ratio is lower than its industry median ratio of 19.63. This could make American Shared Hospital Services more attractive because the lower P/FCF ratio indicates that American Shared Hospital Services 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.

H&E; Equipment Services, Inc.’s Value Grade

Value Grade:

H&E; Equipment Services, Inc. is an integrated equipment services company. Its segments include equipment rentals, used equipment sales, new equipment sales, parts sales, and repair and maintenance services. Its equipment rentals segment rents its core types of construction and industrial equipment. Its used equipment sales segment is engaged in the sale of used equipment from its rental fleet, as well as from sales of inventoried equipment. Its new equipment sales segment is engaged in selling equipment through a professional in-house retail sales force. Its parts sales segment provides parts to its own rental fleet and sells parts for the equipment it sells. It also maintains a parts inventory. Its repair and maintenance services segment provides services to its own rental fleet and for its customers owned equipment. It provides ongoing preventative maintenance services. The Company provides ancillary equipment support activities, including transportation, hauling, and parts shipping.

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.

H&E; Equipment Services, Inc. has a Value Score of 61, which is considered to be undervalued.

H&E; Equipment Services, Inc.’s price-earnings ratio is 17.9 compared to the industry median at 22.9. This means that it has a lower price relative to its earnings compared to its peers. This makes H&E; Equipment Services, Inc. more attractive for value investors.

H&E; Equipment Services, Inc.’s price-to-book ratio is lower than its peers. This could make H&E; Equipment Services, Inc. more attractive for value investors when compared to the industry median at 2.52.

You can read more about H&E; Equipment Services, 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.

springbig Holdings Inc’s Value Grade

Value Grade:

SpringBig Holdings, Inc. is a software platform that provides customer loyalty and marketing automation solutions to cannabis retailers and brands in the United States and Canada. The Company’s platform connects consumers with retailers and brands, primarily through short message service (SMS) marketing, as well as emails, customer feedback system, and loyalty programs, to support retailers' and brands' customer engagement and retention. It offers marketing automation solutions that provide consistency of customer communication, thereby driving customer retention and retail foot traffic. In addition, the Company’s reporting and analytics offerings deliver insights that clients utilize to understand their customer base, purchasing habits and trends.

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.

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

springbig Holdings Inc’s price-to-book ratio is lower than its peers. This could make springbig Holdings Inc more attractive for value investors when compared to the industry median at 2.52.

You can read more about springbig 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.

Textainer Group Holdings Limited’s Value Grade

Value Grade:

Textainer Group Holdings Limited is a holding company. The Company is involved in the purchase, management, leasing and resale of a fleet of marine cargo containers. The Company operates in three segments: Container Ownership, Container Management and Container Resale. The Containers Ownership consist primarily of dry freight containers, but also include refrigerated and other special-purpose containers. The Container Management segment manages a fleet of containers for and on behalf of unaffiliated container investors, providing acquisition, management, and disposal services. The Container Resale segment sell containers from its fleet when they reach the end of their useful lives in marine services and also purchase and lease or resell containers from shipping line customers, container traders and other sellers of containers. The Company also supplies dry freight, specialized, and refrigerated containers to approximately 200 global customers, including shipping lines.

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.

Textainer Group Holdings Limited has a Value Score of 87, which is considered to be undervalued.

Textainer Group Holdings Limited’s price-earnings ratio is 5.5 compared to the industry median at 22.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Textainer Group Holdings Limited more attractive for value investors.

Textainer Group Holdings Limited’s price-to-book ratio is higher than its peers. This could make Textainer Group Holdings Limited less attractive for value investors when compared to the industry median at 2.52.

You can read more about Textainer Group Holdings Limited’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.

Triton International Ltd’s Value Grade

Value Grade:

Triton International Limited is an intermodal container leasing company. The Company is a lessor of intermodal containers and chassis. Its operations include the acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis. The Company’s segments include Equipment leasing and Equipment trading. The Company’s Equipment leasing operations include the acquisition, leasing, re-leasing and ultimate sale of multiple types of intermodal transportation equipment, primarily intermodal containers. The Equipment trading segment consists of purchasing containers from shipping line customers, and other sellers of containers, and resell these containers to container retailers and users of containers for storage or one-way shipment. It also leases chassis, which are used for the transportation of containers. It leases and sells quality intermodal shipping containers and related equipment through third-party depots and locations across the world.

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.

Triton International Ltd has a Value Score of 71, which is considered to be undervalued.

Triton International Ltd’s price-earnings ratio is 6.5 compared to the industry median at 22.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Triton International Ltd more attractive for value investors.

Triton International Ltd’s price-to-book ratio is higher than its peers. This could make Triton International Ltd less attractive for value investors when compared to the industry median at 2.52.

You can read more about Triton International 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.

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. It 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. The Company’s 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 82, which is considered to be undervalued.

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 2.52.

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 6 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.

• American Shared Hospital Services stock has a Value Grade of A.
• H&E; Equipment Services, Inc. stock has a Value Grade of B.
• springbig Holdings Inc stock has a Value Grade of B.
• Textainer Group Holdings Limited stock has a Value Grade of A.
• Triton International Ltd stock has a Value Grade of B.
• Willis Lease Finance Corporation stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Business Support Services Stocks for Friday, February 03
• 4 Undervalued Business Support Services Stocks for Thursday, February 02
• Which Is a Better Investment, Brink's Company or First Advantage Corp Stock?
• Which Is a Better Investment, Concentrix Corp or First Advantage Corp Stock?

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.