REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
NYSE:RM - US75902K1060 - Common Stock
40.53 USD
+3.45 (+9.3%)
40.53 USD
0 (0%)
Taking everything into account, RM scores 5 out of 10 in our fundamental rating. RM was compared to 53 industry peers in the Consumer Finance industry. There are concerns on the financial health of RM while its profitability can be described as average. RM scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
RM had positive earnings in the past year.
RM had a positive operating cash flow in the past year.
In the past 5 years RM has always been profitable.
Each year in the past 5 years RM had a positive operating cash flow.
1.2 Ratios
RM has a Return On Assets (1.77%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 9.57%, RM is in line with its industry, outperforming 50.94% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.12%, RM is doing good in the industry, outperforming 64.15% of the companies in the same industry.
RM had an Average Return On Invested Capital over the past 3 years of 5.39%. This is significantly below the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 9.57% | ||
| ROIC | 5.12% |
ROA(3y)2.01%
ROA(5y)2.9%
ROE(3y)11.03%
ROE(5y)14.86%
ROIC(3y)5.39%
ROIC(5y)6.19%
1.3 Margins
Looking at the Profit Margin, with a value of 5.68%, RM is doing worse than 62.26% of the companies in the same industry.
RM's Profit Margin has declined in the last couple of years.
RM has a Operating Margin of 20.43%. This is in the better half of the industry: RM outperforms 67.92% of its industry peers.
RM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.43% | ||
| PM (TTM) | 5.68% | ||
| GM | N/A |
OM growth 3Y-9.85%
OM growth 5Y-4.74%
PM growth 3Y-30.32%
PM growth 5Y-11.03%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RM is destroying value.
The number of shares outstanding for RM has been increased compared to 1 year ago.
RM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that RM is in the distress zone and has some risk of bankruptcy.
RM has a Altman-Z score of 0.89. This is in the better half of the industry: RM outperforms 60.38% of its industry peers.
The Debt to FCF ratio of RM is 5.71, which is a neutral value as it means it would take RM, 5.71 years of fcf income to pay off all of its debts.
RM has a Debt to FCF ratio of 5.71. This is in the better half of the industry: RM outperforms 62.26% of its industry peers.
A Debt/Equity ratio of 4.14 is on the high side and indicates that RM has dependencies on debt financing.
RM's Debt to Equity ratio of 4.14 is on the low side compared to the rest of the industry. RM is outperformed by 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.81
WACC6.33%
2.3 Liquidity
RM has a Current Ratio of 0.04. This is a bad value and indicates that RM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RM (0.04) is worse than 83.02% of its industry peers.
RM has a Quick Ratio of 0.04. This is a bad value and indicates that RM is not financially healthy enough and could expect problems in meeting its short term obligations.
RM has a worse Quick ratio (0.04) than 83.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
RM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.34%.
The Earnings Per Share has been growing slightly by 1.67% on average over the past years.
The Revenue has been growing slightly by 7.31% in the past year.
Measured over the past years, RM shows a quite strong growth in Revenue. The Revenue has been growing by 10.59% on average per year.
EPS 1Y (TTM)-10.34%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%19.77%
Revenue 1Y (TTM)7.31%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%10.08%
3.2 Future
The Earnings Per Share is expected to grow by 50.54% on average over the next years. This is a very strong growth
Based on estimates for the next years, RM will show a small growth in Revenue. The Revenue will grow by 5.69% on average per year.
EPS Next Y13.27%
EPS Next 2Y28.18%
EPS Next 3Y50.54%
EPS Next 5YN/A
Revenue Next Year9.33%
Revenue Next 2Y8.37%
Revenue Next 3Y5.69%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.68, which indicates a very decent valuation of RM.
Compared to the rest of the industry, the Price/Earnings ratio of RM is on the same level as its industry peers.
RM is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
RM is valuated cheaply with a Price/Forward Earnings ratio of 5.93.
83.02% of the companies in the same industry are more expensive than RM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.81. RM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 5.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RM is valued a bit cheaper than the industry average as 60.38% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RM is valued cheaply inside the industry as 90.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.51 | ||
| EV/EBITDA | 13.57 |
4.3 Compensation for Growth
RM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RM's earnings are expected to grow with 50.54% in the coming years.
PEG (NY)0.88
PEG (5Y)7.01
EPS Next 2Y28.18%
EPS Next 3Y50.54%
5. Dividend
5.1 Amount
RM has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
RM's Dividend Yield is a higher than the industry average which is at 4.24.
RM's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
RM has been paying a dividend for over 5 years, so it has already some track record.
RM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
RM pays out 33.96% of its income as dividend. This is a sustainable payout ratio.
DP33.96%
EPS Next 2Y28.18%
EPS Next 3Y50.54%
40.53
+3.45 (+9.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners86.33%
Inst Owner Change-0.37%
Ins Owners8.85%
Ins Owner Change5.6%
Market Cap397.19M
Analysts80
Price Target40.55 (0.05%)
Short Float %2.76%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend1.23
Dividend Growth(5Y)N/A
DP33.96%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.3%
Min EPS beat(2)-7.33%
Max EPS beat(2)37.93%
EPS beat(4)2
Avg EPS beat(4)2%
Min EPS beat(4)-29.73%
Max EPS beat(4)37.93%
EPS beat(8)6
Avg EPS beat(8)20.19%
EPS beat(12)9
Avg EPS beat(12)15.5%
EPS beat(16)13
Avg EPS beat(16)17.72%
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)0.72%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)0.72%
Revenue beat(8)3
Avg Revenue beat(8)-0.92%
Revenue beat(12)4
Avg Revenue beat(12)-1.16%
Revenue beat(16)6
Avg Revenue beat(16)-0.65%
PT rev (1m)-0.62%
PT rev (3m)2.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.23%
EPS NY rev (1m)4.8%
EPS NY rev (3m)4.8%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)2.75%
Revenue NY rev (3m)2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 5.93 | ||
| P/S | 0.65 | ||
| P/FCF | 1.51 | ||
| P/OCF | 1.41 | ||
| P/B | 1.09 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 13.57 |
EPS(TTM)3.47
EY8.56%
EPS(NY)6.84
Fwd EY16.86%
FCF(TTM)26.85
FCFY66.26%
OCF(TTM)28.7
OCFY70.82%
SpS62.41
BVpS37.04
TBVpS34.1
PEG (NY)0.88
PEG (5Y)7.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 9.57% | ||
| ROCE | 6.7% | ||
| ROIC | 5.12% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 5.28% | ||
| OM | 20.43% | ||
| PM (TTM) | 5.68% | ||
| GM | N/A | ||
| FCFM | 43.03% |
ROA(3y)2.01%
ROA(5y)2.9%
ROE(3y)11.03%
ROE(5y)14.86%
ROIC(3y)5.39%
ROIC(5y)6.19%
ROICexc(3y)5.4%
ROICexc(5y)6.22%
ROICexgc(3y)5.53%
ROICexgc(5y)6.35%
ROCE(3y)7.04%
ROCE(5y)8.09%
ROICexcg growth 3Y0.96%
ROICexcg growth 5Y1.31%
ROICexc growth 3Y0.47%
ROICexc growth 5Y0.98%
OM growth 3Y-9.85%
OM growth 5Y-4.74%
PM growth 3Y-30.32%
PM growth 5Y-11.03%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | 5.71 | ||
| Debt/EBITDA | 10.76 | ||
| Cap/Depr | 123.36% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 201.48% | ||
| Profit Quality | 757.88% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | 0.89 |
F-Score7
WACC6.33%
ROIC/WACC0.81
Cap/Depr(3y)98.62%
Cap/Depr(5y)79.09%
Cap/Sales(3y)2.46%
Cap/Sales(5y)2.09%
Profit Quality(3y)837.23%
Profit Quality(5y)662.95%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.34%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%19.77%
EPS Next Y13.27%
EPS Next 2Y28.18%
EPS Next 3Y50.54%
EPS Next 5YN/A
Revenue 1Y (TTM)7.31%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%10.08%
Revenue Next Year9.33%
Revenue Next 2Y8.37%
Revenue Next 3Y5.69%
Revenue Next 5YN/A
EBIT growth 1Y22.11%
EBIT growth 3Y0.21%
EBIT growth 5Y5.35%
EBIT Next Year-23.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y21.84%
FCF growth 3Y11.37%
FCF growth 5Y10.77%
OCF growth 1Y22.51%
OCF growth 3Y12.48%
OCF growth 5Y11.2%