IMXI

Intermex is a profitable, cash-generative money-transfer business trading at a distressed multiple — 13.5x trailing EPS, 0.7x sales, a 20.3% ROE — yet the discount is earned, not a mispricing. The MD&A is explicit that FY2025's damage is structural, not cyclical: wire-transfer fees fell 9.5% to $502.2M because transactions dropped ~8.5% to 53.9M amid 'a contraction in the market, particularly the Mexico corridor coupled with a change in consumer behavior.' Revenue peaked at $659M in FY2023–24 and has now slid to $608M; net income has collapsed from ~$59M to $32.7M (-44.5%) and diluted EPS from $1.79 to $1.08. This is a franchise losing its highest-volume corridor, and price competition ('lower payer fees...better pricing negotiated') shows the pricing power is thinning too.

That said, the headline earnings drop overstates the operating deterioration. Operating income of $55.6M absorbed roughly $10.5M of transaction costs (up from $1.8M — a ~$8.6M swing), $0.7M restructuring, and a $1.2M goodwill impairment; normalized for those largely one-off items, pre-tax income is meaningfully above the reported $47.1M. Management is deliberately spending into the decline — salaries +10%, advertising +$5.2M, higher IT — to stand up digital channel services as retail volume erodes. Other income rose 24% on RaaS and payroll-card fees, hinting the diversification is early but real.