REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RM - US75902K1060 - Common Stock
38.76 USD
-1.09 (-2.74%)
We assign a fundamental rating of 4 out of 10 to RM. RM was compared to 55 industry peers in the Consumer Finance industry. Both the profitability and financial health of RM have multiple concerns. RM may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years RM had a positive operating cash flow.
1.2 Ratios
RM has a Return On Assets (2.04%) which is comparable to the rest of the industry.
RM has a Return On Equity (11.14%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.36%, RM is in line with its industry, outperforming 60.00% 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 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 11.14% | ||
| ROIC | 5.36% |
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
The Profit Margin of RM (6.57%) is worse than 65.45% of its industry peers.
RM's Profit Margin has declined in the last couple of years.
RM has a Operating Margin of 21.62%. This is in the better half of the industry: RM outperforms 74.55% of its industry peers.
In the last couple of years the Operating Margin of RM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.62% | ||
| PM (TTM) | 6.57% | ||
| 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.
Compared to 1 year ago, RM has an improved debt to assets ratio.
2.2 Solvency
RM has an Altman-Z score of 0.90. This is a bad value and indicates that RM is not financially healthy and even has some risk of bankruptcy.
RM has a Altman-Z score (0.90) which is in line with its industry peers.
The Debt to FCF ratio of RM is 5.70, which is a neutral value as it means it would take RM, 5.70 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RM (5.70) is better than 74.55% of its industry peers.
A Debt/Equity ratio of 4.23 is on the high side and indicates that RM has dependencies on debt financing.
The Debt to Equity ratio of RM (4.23) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.86
WACC6.26%
2.3 Liquidity
A Current Ratio of 0.05 indicates that RM may have some problems paying its short term obligations.
RM's Current ratio of 0.05 is on the low side compared to the rest of the industry. RM is outperformed by 78.18% of its industry peers.
A Quick Ratio of 0.05 indicates that RM may have some problems paying its short term obligations.
The Quick ratio of RM (0.05) is worse than 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
RM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.02%, which is quite good.
Measured over the past 5 years, RM shows a small growth in Earnings Per Share. The EPS has been growing by 1.67% on average per year.
Looking at the last year, RM shows a quite strong growth in Revenue. The Revenue has grown by 9.63% in the last year.
The Revenue has been growing by 10.59% on average over the past years. This is quite good.
EPS 1Y (TTM)11.02%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%86.84%
Revenue 1Y (TTM)9.63%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%13.09%
3.2 Future
The Earnings Per Share is expected to grow by 26.86% 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 7.99% yearly.
EPS Next Y9.48%
EPS Next 2Y23.15%
EPS Next 3Y26.86%
EPS Next 5YN/A
Revenue Next Year9.45%
Revenue Next 2Y8.25%
Revenue Next 3Y7.99%
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
Based on the Price/Earnings ratio of 9.38, the valuation of RM can be described as reasonable.
Based on the Price/Earnings ratio, RM is valued a bit cheaper than 61.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of RM to the average of the S&P500 Index (26.87), we can say RM is valued rather cheaply.
RM is valuated cheaply with a Price/Forward Earnings ratio of 6.14.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RM indicates a rather cheap valuation: RM is cheaper than 81.82% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RM to the average of the S&P500 Index (23.46), we can say RM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 6.14 |
4.2 Price Multiples
61.82% of the companies in the same industry are more expensive than RM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RM indicates a rather cheap valuation: RM is cheaper than 90.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.36 | ||
| EV/EBITDA | 12.9 |
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 26.86% in the coming years.
PEG (NY)0.99
PEG (5Y)5.63
EPS Next 2Y23.15%
EPS Next 3Y26.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.10%, RM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.93, RM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, RM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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
28.16% of the earnings are spent on dividend by RM. This is a low number and sustainable payout ratio.
DP28.16%
EPS Next 2Y23.15%
EPS Next 3Y26.86%
NYSE:RM (1/6/2026, 12:40:45 PM)
38.76
-1.09 (-2.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners82.25%
Inst Owner Change0%
Ins Owners8.06%
Ins Owner Change-0.93%
Market Cap376.36M
Revenue(TTM)630.73M
Net Income(TTM)41.42M
Analysts81.54
Price Target47.26 (21.93%)
Short Float %3.18%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend1.23
Dividend Growth(5Y)N/A
DP28.16%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.1%
Min EPS beat(2)-3.73%
Max EPS beat(2)37.93%
EPS beat(4)2
Avg EPS beat(4)8.5%
Min EPS beat(4)-7.33%
Max EPS beat(4)37.93%
EPS beat(8)5
Avg EPS beat(8)18.3%
EPS beat(12)8
Avg EPS beat(12)14.03%
EPS beat(16)12
Avg EPS beat(16)15.53%
Revenue beat(2)2
Avg Revenue beat(2)1.37%
Min Revenue beat(2)0.72%
Max Revenue beat(2)2.02%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)2.02%
Revenue beat(8)4
Avg Revenue beat(8)-0.48%
Revenue beat(12)4
Avg Revenue beat(12)-1.1%
Revenue beat(16)6
Avg Revenue beat(16)-0.83%
PT rev (1m)0%
PT rev (3m)16.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 6.14 | ||
| P/S | 0.6 | ||
| P/FCF | 1.36 | ||
| P/OCF | 1.29 | ||
| P/B | 1.01 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 12.9 |
EPS(TTM)4.13
EY10.66%
EPS(NY)6.31
Fwd EY16.28%
FCF(TTM)28.43
FCFY73.35%
OCF(TTM)30.16
OCFY77.81%
SpS64.96
BVpS38.3
TBVpS35.17
PEG (NY)0.99
PEG (5Y)5.63
Graham Number59.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 11.14% | ||
| ROCE | 7.01% | ||
| ROIC | 5.36% | ||
| ROICexc | 5.37% | ||
| ROICexgc | 5.52% | ||
| OM | 21.62% | ||
| PM (TTM) | 6.57% | ||
| GM | N/A | ||
| FCFM | 43.77% |
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%
ROICexgc growth 3Y0.96%
ROICexgc 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-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 5.7 | ||
| Debt/EBITDA | 10.38 | ||
| Cap/Depr | 109.54% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 1.8 | ||
| Cash Conversion | 193.07% | ||
| Profit Quality | 666.53% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 0.9 |
F-Score6
WACC6.26%
ROIC/WACC0.86
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)11.02%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%86.84%
EPS Next Y9.48%
EPS Next 2Y23.15%
EPS Next 3Y26.86%
EPS Next 5YN/A
Revenue 1Y (TTM)9.63%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%13.09%
Revenue Next Year9.45%
Revenue Next 2Y8.25%
Revenue Next 3Y7.99%
Revenue Next 5YN/A
EBIT growth 1Y31.07%
EBIT growth 3Y0.21%
EBIT growth 5Y5.35%
EBIT Next Year-23.44%
EBIT Next 3Y6.38%
EBIT Next 5YN/A
FCF growth 1Y21.02%
FCF growth 3Y11.37%
FCF growth 5Y10.77%
OCF growth 1Y20.86%
OCF growth 3Y12.48%
OCF growth 5Y11.2%
REGIONAL MANAGEMENT CORP / RM FAQ
Can you provide the ChartMill fundamental rating for REGIONAL MANAGEMENT CORP?
ChartMill assigns a fundamental rating of 4 / 10 to RM.
What is the valuation status for RM stock?
ChartMill assigns a valuation rating of 8 / 10 to REGIONAL MANAGEMENT CORP (RM). This can be considered as Undervalued.
Can you provide the profitability details for REGIONAL MANAGEMENT CORP?
REGIONAL MANAGEMENT CORP (RM) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for RM stock?
The Earnings per Share (EPS) of REGIONAL MANAGEMENT CORP (RM) is expected to grow by 9.48% in the next year.
Is the dividend of REGIONAL MANAGEMENT CORP sustainable?
The dividend rating of REGIONAL MANAGEMENT CORP (RM) is 5 / 10 and the dividend payout ratio is 28.16%.