As part of a new series here at The Acquirer’s Multiple, we’re providing a new feature called ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Points International Ltd. (NASDAQ: PCOM).
Points International Ltd is a Canadian company which is engaged in providing web-based solutions to the loyalty program industry. It offers e-commerce services include the retailing and wholesaling of loyalty program currencies, a range of additional e-commerce products and management of an online consumer-focused loyalty points management web-portal. The company’s operating segments are Loyalty Currency Retailing, Platform Partners, and Points Travel. It generates maximum revenue from the Loyalty Currency Retailing segment. The majority of the company’s revenue is derived from the United States.
A quick look at Points International’s share price history (below) over the past twelve months shows that the price is down 40%. Here’s why the company is undervalued.
Summary
Market Cap: $95 Million
Enterprise Value: $32 Million
Operating Earnings*
Operating Earnings: $18 Million
Acquirer’s Multiple
Acquirer’s Multiple: 1.76
Free Cash Flow (TTM)
Free Cash Flow: $12.9 Million
FCF/EV Yield:
FCF/EV Yield: 40%
Other Indicators
Piotroski F-Score: 7
Altman Z-Score: 3.66
Beneish M-Score: -1.81
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