REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
USA - NYSE:RM - US75902K1060 - Common Stock
43.92 USD
+1.29 (+3.03%)
43.92 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RM. RM was compared to 54 industry peers in the Consumer Finance industry. While RM is still in line with the averages on profitability rating, there are concerns on its financial health. RM is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year RM was profitable.
RM had a positive operating cash flow in the past year.
RM had positive earnings in each of the past 5 years.
In the past 5 years RM always reported a positive cash flow from operatings.
1.2 Ratios
RM has a Return On Assets (1.77%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.57%, RM is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Invested Capital of RM (5.12%) is better than 64.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RM is significantly below the industry average of 11.02%.
| 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
RM has a worse Profit Margin (5.68%) than 62.96% of its industry peers.
RM's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 20.43%, RM is doing good in the industry, outperforming 68.52% of the companies in the same industry.
In the last couple of years the Operating Margin of RM has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RM is destroying value.
RM has more shares outstanding than it did 1 year ago.
RM has less shares outstanding than it did 5 years ago.
RM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that RM is in the distress zone and has some risk of bankruptcy.
RM's Altman-Z score of 0.90 is in line compared to the rest of the industry. RM outperforms 57.41% of its industry peers.
RM has a debt to FCF ratio of 5.71. This is a neutral value as RM would need 5.71 years to pay back of all of its debts.
The Debt to FCF ratio of RM (5.71) is better than 62.96% 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.
The Debt to Equity ratio of RM (4.14) is worse than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.79
WACC6.45%
2.3 Liquidity
A Current Ratio of 0.04 indicates that RM may have some problems paying its short term obligations.
RM has a worse Current ratio (0.04) than 83.33% of its industry peers.
A Quick Ratio of 0.04 indicates that RM may have some problems paying its short term obligations.
The Quick ratio of RM (0.04) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
The earnings per share for RM have decreased strongly by -10.34% in the last year.
RM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.67% yearly.
Looking at the last year, RM shows a small growth in Revenue. The Revenue has grown by 7.31% in the last year.
RM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.59% yearly.
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
RM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.54% yearly.
RM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.69% yearly.
EPS Next Y13.27%
EPS Next 2Y28.18%
EPS Next 3Y50.54%
EPS Next 5YN/A
Revenue Next Year9.32%
Revenue Next 2Y8.36%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RM is valuated correctly with a Price/Earnings ratio of 12.66.
RM's Price/Earnings ratio is in line with the industry average.
RM is valuated cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.43, the valuation of RM can be described as very cheap.
83.33% of the companies in the same industry are more expensive than RM, based on the Price/Forward Earnings ratio.
RM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 6.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RM is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
RM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RM is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.64 | ||
| EV/EBITDA | 13.81 |
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.
RM's earnings are expected to grow with 50.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)7.59
EPS Next 2Y28.18%
EPS Next 3Y50.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.79%, RM has a reasonable but not impressive dividend return.
RM's Dividend Yield is a higher than the industry average which is at 4.46.
RM's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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
33.96% of the earnings are spent on dividend by RM. This is a low number and sustainable payout ratio.
DP33.96%
EPS Next 2Y28.18%
EPS Next 3Y50.54%
43.92
+1.29 (+3.03%)
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 Cap430.42M
Analysts80
Price Target40.55 (-7.67%)
Short Float %2.46%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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%
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%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)2.74%
Revenue NY rev (3m)2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 6.43 | ||
| P/S | 0.7 | ||
| P/FCF | 1.64 | ||
| P/OCF | 1.53 | ||
| P/B | 1.19 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 13.81 |
EPS(TTM)3.47
EY7.9%
EPS(NY)6.84
Fwd EY15.56%
FCF(TTM)26.85
FCFY61.14%
OCF(TTM)28.7
OCFY65.35%
SpS62.41
BVpS37.04
TBVpS34.1
PEG (NY)0.95
PEG (5Y)7.59
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 | 0.9 |
F-Score7
WACC6.45%
ROIC/WACC0.79
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 Year9.32%
Revenue Next 2Y8.36%
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%