REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RM - US75902K1060 - Common Stock
37.02 USD
-0.63 (-1.67%)
37.02 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RM. RM was compared to 55 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
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.
RM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RM (2.04%) is comparable to the rest of the industry.
The Return On Equity of RM (11.14%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.36%, RM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RM is significantly below the industry average of 11.33%.
| 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 60.00% of its industry peers.
In the last couple of years the Profit Margin of RM has declined.
RM has a Operating Margin of 21.62%. This is in the better half of the industry: RM outperforms 76.36% of its industry peers.
RM's Operating Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, RM has more shares outstanding
The number of shares outstanding for RM has been reduced compared to 5 years ago.
The debt/assets ratio for RM has been reduced compared to a year ago.
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.
The Altman-Z score of RM (0.90) is comparable to the rest of the industry.
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.
RM has a Debt to FCF ratio of 5.70. This is in the better half of the industry: RM outperforms 72.73% 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 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.88
WACC6.09%
2.3 Liquidity
A Current Ratio of 0.05 indicates that RM may have some problems paying its short term obligations.
With a Current ratio value of 0.05, RM is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
RM has a Quick Ratio of 0.05. 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 Quick ratio of 0.05. This is amonst the worse of the industry: RM underperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.02% over the past year.
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.
The Revenue has grown by 9.63% in the past year. This is quite good.
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 38.63% 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 5.55% yearly.
EPS Next Y10.62%
EPS Next 2Y24.69%
EPS Next 3Y38.63%
EPS Next 5YN/A
Revenue Next Year9.19%
Revenue Next 2Y7.86%
Revenue Next 3Y5.55%
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
With a Price/Earnings ratio of 8.96, the valuation of RM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RM indicates a somewhat cheap valuation: RM is cheaper than 63.64% of the companies listed in the same industry.
RM is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
RM is valuated cheaply with a Price/Forward Earnings ratio of 5.72.
RM's Price/Forward Earnings ratio is rather cheap when compared to the industry. RM is cheaper than 83.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, RM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 5.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RM indicates a somewhat cheap valuation: RM is cheaper than 65.45% of the companies listed in the same industry.
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 | 1.3 | ||
| EV/EBITDA | 12.76 |
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.
A more expensive valuation may be justified as RM's earnings are expected to grow with 38.63% in the coming years.
PEG (NY)0.84
PEG (5Y)5.38
EPS Next 2Y24.69%
EPS Next 3Y38.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.07%, RM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.10, RM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, RM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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 2Y24.69%
EPS Next 3Y38.63%
37.02
-0.63 (-1.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners85.72%
Inst Owner Change-2.47%
Ins Owners8.9%
Ins Owner Change2.21%
Market Cap359.46M
Revenue(TTM)630.73M
Net Income(TTM)41.42M
Analysts81.54
Price Target47.26 (27.66%)
Short Float %3.11%
Short Ratio6.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend1.23
Dividend Growth(5Y)N/A
DP28.16%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)12.1%
PT rev (3m)16.56%
EPS NQ rev (1m)-2.75%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)-2.74%
EPS NY rev (3m)-2.34%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 5.72 | ||
| P/S | 0.57 | ||
| P/FCF | 1.3 | ||
| P/OCF | 1.23 | ||
| P/B | 0.97 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 12.76 |
EPS(TTM)4.13
EY11.16%
EPS(NY)6.47
Fwd EY17.47%
FCF(TTM)28.43
FCFY76.8%
OCF(TTM)30.16
OCFY81.47%
SpS64.96
BVpS38.3
TBVpS35.17
PEG (NY)0.84
PEG (5Y)5.38
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
WACC6.09%
ROIC/WACC0.88
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 Y10.62%
EPS Next 2Y24.69%
EPS Next 3Y38.63%
EPS Next 5YN/A
Revenue 1Y (TTM)9.63%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%13.09%
Revenue Next Year9.19%
Revenue Next 2Y7.86%
Revenue Next 3Y5.55%
Revenue Next 5YN/A
EBIT growth 1Y31.07%
EBIT growth 3Y0.21%
EBIT growth 5Y5.35%
EBIT Next Year-23.65%
EBIT Next 3YN/A
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 5 / 10 to RM.
Can you provide the valuation status for REGIONAL MANAGEMENT CORP?
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 4 / 10.
What are the PE and PB ratios of REGIONAL MANAGEMENT CORP (RM) stock?
The Price/Earnings (PE) ratio for REGIONAL MANAGEMENT CORP (RM) is 8.96 and the Price/Book (PB) ratio is 0.97.
Can you provide the dividend sustainability for RM stock?
The dividend rating of REGIONAL MANAGEMENT CORP (RM) is 5 / 10 and the dividend payout ratio is 28.16%.