VASCO Data Security International, Inc. (VDSI)

sray2 (< 20) Submitted: 2/07/08 2:12 PM : Start Price: $16.80 VDSI Score: -10.33

I just added more of this stock to my real $ portfolio, this stock has been beaten so badly for no real reason. I checked it out and calculated some of the the financial data and it's truly an amazing stock that is completely undervalued by the market. This is what i found:

Currently trading at ~37% of its 52 week high
ROE = 44.7%, ROA= 27.3%
Gross Margin = 66.5%
Current P/E = 28.4 vs Avg P/E = 44
PEG = 0.5
Price/book = 9.5 vs Avg P/B = 14.7
Ent Value / EBITDA = 17.3 vs Avg EV/EBITDA = 27.3
LTM EBITDA margin = 30.2%
P/E of 28x 2008 projected earnings, well below 2007 P/E of 53
Expected EPS growth of 30%
Practically no debt

In addition, this was a SA pick in December when the stock was trading around $27, it is now at a 40% discount in 2 months since the recommendation and is one of their Best Buy now picks. S&P had a fair value of $23 on this stock last week when it was trading at around $19, now it is under $17. I don't know a whole lot about the company besides the above data and reading the SA pick and S&P report on it, but based on these things alone I believe that this stock will be a long-term growth and value stock which can potentially trounce the market once Wall Street picks up on its fundamentals and business.

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