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Are Investors Undervaluing Cardtronics (CATM) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Cardtronics . CATM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.23, which compares to its industry's average of 25.78. Over the last 12 months, CATM's Forward P/E has been as high as 18.82 and as low as 11.29, with a median of 14.05.

We should also highlight that CATM has a P/B ratio of 4.12. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 11.84. CATM's P/B has been as high as 4.60 and as low as 2.67, with a median of 3.70, over the past year.

Finally, investors will want to recognize that CATM has a P/CF ratio of 7.21. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 24.99. Over the past 52 weeks, CATM's P/CF has been as high as 8.49 and as low as 5.08, with a median of 6.71.

Value investors will likely look at more than just these metrics, but the above data helps show that Cardtronics is likely undervalued currently. And when considering the strength of its earnings outlook, CATM sticks out at as one of the market's strongest value stocks.

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