International Money Express (IMXI), mcap=$866m, price $23.37 vs $22.40

IMXI pitch:
– Money-transfer business at 11x PE despite high growth, wide-moat, and excellent management team.
– IMXI has grown at 30% CAGR and has plenty of runways to continue growing revenue DD and EPS >20% by simply continuing to execute its current playbook.
– Focuses on selected remittance corridors to LatAm, where it can offer top customer service/brand.
– Negative investor sentiment due to bad industry reputation and fears of secular disruption.
– Digital-only players will not materially impact the growth trajectory of Intermex for the foreseeable future.
– Global remittance industry continues to grow MSD.
– US to LatAm remittances are growing ~10% – this is a strong secular tailwind for Intermex, which conducts >90% of its business in the US to LatAm corridors.

IMXI valuation:
– Trades at 11x our NTM EPS, a ~27% discount to its historical average multiple of 15x.
– In a bullish scenario worth $100/share at 25x 2025 EPS of $4/share.

Exp. gain: +300% to $100/share (bullish scenario).

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