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IMXI

International Money Express NasdaqCM:IMXI Stock Report

Last Price

US$22.79

Market Cap

US$836.5m

7D

-2.2%

1Y

35.3%

Updated

30 Sep, 2022

Data

Company Financials +
IMXI fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends0/6

IMXI Stock Overview

International Money Express, Inc., through its subsidiary, operates as a money remittance services company in the United States, Latin America, Mexico, Africa, Central and South America, and the Caribbean.

International Money Express, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for International Money Express
Historical stock prices
Current Share PriceUS$22.79
52 Week HighUS$26.23
52 Week LowUS$14.66
Beta0.64
1 Month Change1.74%
3 Month Change4.69%
1 Year Change35.33%
3 Year Change68.44%
5 Year Changen/a
Change since IPO127.90%

Recent News & Updates

Sep 26

International Money Express: Bullish As Remittances May Prove To Be Recession Resistant

Summary IMXI is capturing market share in money transfer services to Latin America. The challenging economic environment may add to the demand for remittances as a form of financial assistance to friends and family overseas. IMXI outperformed this year, and we see more upside with continued earnings momentum. International Money Express, Inc. (IMXI), also known as "Intermex", is a leader in money transfer services between the U.S. and Latin America. The company's omnichannel business model allows customers to initiate international remittances through agent retailers, and company-owned stores, as well as with digital payments. The attraction here is a strong growth profile, with Intermex capturing market share in its core operating countries of Central America. Indeed, IMXI has climbed more than 40% in 2022 as an outperformer through a string of better-than-expected earnings. We like the stock with a sense that international remittances should be relatively resilient to slowing economic conditions as a defensive business in the current market. Simply put, a volatile global economy in combination with a historically strong U.S. Dollar should support demand for these types of cash transfers in support of friends and family. While IMXI has already been a big winner this year, we see more upside over the year ahead. IMXI Key Stats Intermex last reported its Q2 earnings in early August with EPS of $0.47, up from $0.39 in the period last year while beating expectations by 0.04. Revenue of $137 million increased by 17.3% year-over-year and was also ahead of estimates. The story is the climbing number of transactions that reached 11.9 million, up 18.1% y/y. Within that figure, digitally originated transactions more than doubled and now represent 26% of the total. The number of active customers is up 15% from Q2 last year, which provides some runaway for continued growth between new and repeat customers. Company IR During the earnings conference call, management noted how its receiving customers, which often do not have traditional bank accounts, are increasingly utilizing mobile wallets which have added to transaction activity. The share of digital transactions as a percentage of the total is now 26.3%, up from 22.1% in the period last year. What's also impressive is the principal value of transactions at $5.3 billion in Q2, up 22% over the past year. Intermex notes that its market share of inbound international remittances at 21.9% is up 90 basis points over the past year and from 19.3% in 2020. While the company operates in 22 countries, the core business includes Mexico, Guatemala, Honduras, and El Salvador. On this point, IMXI is in the process of closing its acquisition of smaller remittance player "El Nacional" which will add to its distribution reach of local agents to new areas as well as open the door for Intermex to expand into Europe as a new growth driver. Company IR A solid balance sheet and positive free cash flow generation are strong points in the company's investment profile. Intermex ended the quarter with $115 million in cash against $81 million in total debt. Considering adjusted EBITDA of 28 million during the quarter and $77 million over the past year, the leverage ratio is under 1x. Notably, the company has been active with share repurchases, buying back $10 million in Q2 with another $21 million remaining under the existing authorization. Company IR In terms of guidance, management projected some confidence that the trends can continue. For the full year, the company revenue was between $542 million to $551 million, up 19% at the midpoint. The expectation is that adjusted net income and adjusted EBITDA climb around 20% from 2021. These targets were revised higher compared to guidance back in Q1 highlighting the strength of the business. Company IR IMXI Stock Price Forecast There's a lot to like about IMXI which benefits from several underlying secular tailwinds. First, data suggests that the pandemic in 2020 accelerated the use of international remittances globally, particularly from the United States and into Latin America. 2021 was a record year for these types of flows, with every indication the trends can continue as more and more migrants and second or third-generation family members regularly use these types of services. The other important dynamic at play is the more widespread adoption of mobile devices and access to the internet, which is a key issue in some of the smaller countries of the region. Simply put, a new generation of customers are initiating digital transfers with ease and convenience, supporting more transactions. Intermex, through its brand recognition and customer loyalty, is well positioned to keep outpacing the industry and generate higher earnings, supporting a positive long-term outlook. The reason we're looking at IMXI today is a sense that the business of facilitating international cash transfers between the U.S. and Latin America may prove to be recession-proof. Our thinking here is that in a more challenging macro environment in both the U.S. and Latin America, the need for individual financial assistance is greater than ever. The remittances related to financial emergencies or recurring support of friends and family could see an uptick in a broader economic slowdown as a uniquely counter-cyclical segment of financial services. The bullish case here is simply that Intermex can maintain its growth strength with upside to earnings targets. According to consensus, the forecasts for full-year 2022 revenue and earnings, climbing near 20% from 2021 are in-line with management guidance. The market also expects continued momentum into 2023 with revenue and earnings climbing by 17%. Seeking Alpha These estimates stand out among a group of larger competitors including The Western Union Co. (WU) and MoneyGram International, Inc. (MGI) with IMXI generating stronger growth. In the last quarter, for example, WU posted a sales decline of 12% while MGI was flat. As it relates to valuation, IMXI's forward P/E of 13x is between MGI at 23x and WU at 8x. We believe IMXI deserves a higher multiple and growth premium given its more focused operating exposure to Latin America with the remittance trends in the region being driven by the transition to digital, which IMXI is capturing.

Aug 09
International Money Express (NASDAQ:IMXI) Has A Rock Solid Balance Sheet

International Money Express (NASDAQ:IMXI) Has A Rock Solid Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

IMXIUS ITUS Market
7D-2.2%-2.7%-2.5%
1Y35.3%-39.1%-23.2%

Return vs Industry: IMXI exceeded the US IT industry which returned -37.2% over the past year.

Return vs Market: IMXI exceeded the US Market which returned -21.5% over the past year.

Price Volatility

Is IMXI's price volatile compared to industry and market?
IMXI volatility
IMXI Average Weekly Movement4.4%
IT Industry Average Movement8.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: IMXI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IMXI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a779Bob Lisyhttps://www.intermexonline.com

International Money Express, Inc., through its subsidiary, operates as a money remittance services company in the United States, Latin America, Mexico, Africa, Central and South America, and the Caribbean. The company offers remittance services, which include a suite of ancillary financial processing solutions and payment services; and online payment options, pre-paid debit cards, and direct deposit payroll cards. It provides services through sending and paying agents and company-operated stores, as well as through online and Internet-enabled mobile devices.

International Money Express, Inc. Fundamentals Summary

How do International Money Express's earnings and revenue compare to its market cap?
IMXI fundamental statistics
Market CapUS$836.46m
Earnings (TTM)US$52.28m
Revenue (TTM)US$499.48m

16.0x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IMXI income statement (TTM)
RevenueUS$499.48m
Cost of RevenueUS$337.88m
Gross ProfitUS$161.60m
Other ExpensesUS$109.33m
EarningsUS$52.28m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.42
Gross Margin32.35%
Net Profit Margin10.47%
Debt/Equity Ratio50.7%

How did IMXI perform over the long term?

See historical performance and comparison