REGIONAL MANAGEMENT CORP (RM)
US75902K1060 - Common Stock
Overall RM gets a fundamental rating of 4 out of 10. We evaluated RM against 51 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 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.
In the past year RM had a positive cash flow from operations.
In the past 5 years RM has always been profitable.
In the past 5 years RM always reported a positive cash flow from operatings.
1.2 Ratios
RM has a Return On Assets (0.89%) which is in line with its industry peers.
With a Return On Equity value of 4.94%, RM perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.98%, RM is doing good in the industry, outperforming 64.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RM is in line with the industry average of 6.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 4.94% | ||
| ROIC | 3.98% |
ROA(3y)3.31%
ROA(5y)3.24%
ROE(3y)17.64%
ROE(5y)15.5%
ROIC(3y)5.42%
ROIC(5y)6.21%
1.3 Margins
The Profit Margin of RM (2.89%) is worse than 62.75% of its industry peers.
RM's Profit Margin has declined in the last couple of years.
RM has a better Operating Margin (15.99%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of RM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.99% | ||
| PM (TTM) | 2.89% | ||
| GM | N/A |
OM growth 3Y-16.88%
OM growth 5Y-9.17%
PM growth 3Y-26%
PM growth 5Y-24.13%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
RM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RM has been increased compared to 1 year ago.
The number of shares outstanding for RM has been reduced compared to 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 0.79, we must say that RM is in the distress zone and has some risk of bankruptcy.
RM's Altman-Z score of 0.79 is fine compared to the rest of the industry. RM outperforms 62.75% of its industry peers.
RM has a debt to FCF ratio of 5.88. This is a neutral value as RM would need 5.88 years to pay back of all of its debts.
The Debt to FCF ratio of RM (5.88) is comparable to the rest of the industry.
RM has a Debt/Equity ratio of 4.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.33, RM is doing worse than 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.33 | ||
| Debt/FCF | 5.88 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.73
WACC5.49%
2.3 Liquidity
RM has a Current Ratio of 0.06. This is a bad value and indicates that RM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.06, RM is not doing good in the industry: 78.43% of the companies in the same industry are doing better.
RM has a Quick Ratio of 0.06. 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 (0.06) than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The earnings per share for RM have decreased strongly by -42.91% in the last year.
Measured over the past years, RM shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.23% on average per year.
Looking at the last year, RM shows a quite strong growth in Revenue. The Revenue has grown by 8.73% in the last year.
The Revenue has been growing by 12.45% on average over the past years. This is quite good.
EPS 1Y (TTM)-42.91%
EPS 3Y7.63%
EPS 5Y-1.23%
EPS growth Q2Q116%
Revenue 1Y (TTM)8.73%
Revenue growth 3Y13.82%
Revenue growth 5Y12.45%
Revenue growth Q2Q7.32%
3.2 Future
The Earnings Per Share is expected to grow by 48.85% on average over the next years. This is a very strong growth
RM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.62% yearly.
EPS Next Y37.45%
EPS Next 2Y48.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.86%
Revenue Next 2Y6.62%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 9.17, which indicates a very decent valuation of RM.
RM's Price/Earnings ratio is a bit cheaper when compared to the industry. RM is cheaper than 64.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of RM to the average of the S&P500 Index (28.06), we can say RM is valued rather cheaply.
RM is valuated cheaply with a Price/Forward Earnings ratio of 6.67.
Based on the Price/Forward Earnings ratio, RM is valued a bit cheaper than 76.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. RM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 6.67 |
4.2 Price Multiples
RM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RM is cheaper than 66.67% of the companies in the same industry.
86.27% of the companies in the same industry are more expensive than RM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.12 | ||
| EV/EBITDA | 15.93 |
4.3 Compensation for Growth
The 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 48.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y48.85%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.76%, RM is a good candidate for dividend investing.
RM's Dividend Yield is rather good when compared to the industry average which is at 4.30. RM pays more dividend than 82.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, RM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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 Years3
5.3 Sustainability
RM pays out 74.63% of its income as dividend. This is not a sustainable payout ratio.
DP74.63%
EPS Next 2Y48.85%
EPS Next 3YN/A
REGIONAL MANAGEMENT CORP
NYSE:RM (5/2/2024, 3:10:03 PM)
After market: 27.32 0 (0%)27.32
+2.03 (+8.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap266.64M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 6.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 4.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.99% | ||
| PM (TTM) | 2.89% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-42.91%
EPS 3Y7.63%
EPS 5Y
EPS growth Q2Q
EPS Next Y37.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.73%
Revenue growth 3Y13.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y