Is Moneygram Intl (NASDAQ:MGI) undervalued?

Moneygram Intl Enterprise Value is most likely to increase significantly in the upcoming years. The preceding year's Enterprise Value was reported at 1.09 Billion. The current Free Cash Flow is estimated to increase to about 61 M, while Net Income Per Employee is projected to decrease to (3.7 K). As some conservative investors are getting more into financial services space, Moneygram Intl could be a your radar. We will check if it is still possible for Moneygram Intl to minimize net losses this year. In this post, I will also go over some essential variables affecting Moneygram Intl's products, and show how it may impact Moneygram Intl outlook for active traders this year.
Published over a year ago
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Reviewed by Rifka Kats

The company secures a Beta (Market Risk) of -0.2133, which conveys not very significant fluctuations relative to the market. Let's try to break down what Moneygram's beta means in this case. As returns on the market increase, returns on owning Moneygram Intl are expected to decrease at a much lower rate. During the bear market, Moneygram Intl is likely to outperform the market. Although it is extremely important to respect Moneygram Intl price patterns, it is better to be realistic regarding the information on equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Moneygram Intl technical indicators, you can presently evaluate if the expected return of 0.0302% will be sustainable into the future. Moneygram Intl right now secures a risk of 6.89%. Please verify Moneygram Intl downside variance, and the relationship between the treynor ratio and kurtosis to decide if Moneygram Intl will be following its current price movements.
The performance of Moneygram Int in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Moneygram Int's stock prices. When investing in Moneygram Int, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Moneygram Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Moneygram Int carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

How important is Moneygram Int's Liquidity

Moneygram Int financial leverage refers to using borrowed capital as a funding source to finance Moneygram Int ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Moneygram Int financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Moneygram Int's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Moneygram Int's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Moneygram Int's total debt and its cash.

What is driving Moneygram Int Investor Appetite?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Moneygram Intl has an asset utilization ratio of 27.56 percent. This implies that the company is making $0.28 for each dollar of assets. An increasing asset utilization means that Moneygram Intl is more efficient with each dollar of assets it utilizes for everyday operations.
 2020 2021 (projected)
Long Term Debt to Equity10.1310.07
Interest Coverage1.111.32

Are Moneygram Intl technical ratios showing a recoup?

The semi deviation is down to 5.67 as of today. Moneygram Intl is displaying above-average volatility over the selected time horizon. Investors should scrutinize Moneygram Intl independently to ensure intended market timing strategies are aligned with expectations about Moneygram Intl volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Moneygram Intl's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Moneygram Intl's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Moneygram Intl Investment

When is the right time to buy or sell Moneygram Intl? Buying stocks such as Moneygram Intl isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 8th of May 2021, our research shows that Moneygram Intl is a rather relatively risky investment opportunity with a close to average odds of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our actual 90 days buy vs. sell advice on the company is Strong Sell.

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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Moneygram Int. Please refer to our Terms of Use for any information regarding our disclosure principles.

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