Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Based in Tampa, Florida, nFinanSe Inc. specializes in distributing stored value cards (SVCs) across the United States. These offerings encompass various options such as Visa and Discover branded cards, bank-issued general purpose reloadable (GPR) cards, and gift cards. The company makes these SVCs available directly to consumers via a network of retail partners, which includes grocery stores, convenience stores, and general merchandise outlets. By January 1, 2011, nFinanSe's operational footprint had grown to approximately 84,000 network locations, primarily consisting of Western Union and MoneyGram sites, in addition to about 19,000 retail agent locations. Established in 2000, the firm rebranded to nFinanSe Inc. in 2006, having previously been known as Morgan Beaumont, Inc.
Company Valuation
From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. Specifically, the stock is undervalued on EV/EBITDA.