REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
NYSE:RM - New York Stock Exchange, Inc. - US75902K1060 - Common Stock - Currency: USD
Taking everything into account, RM scores 4 out of 10 in our fundamental rating. RM was compared to 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on RM.
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 (1.74%) which is comparable to the rest of the industry.
RM's Return On Equity of 9.23% is in line compared to the rest of the industry. RM outperforms 47.06% of its industry peers.
The Return On Invested Capital of RM (5.03%) is better than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RM is below the industry average of 9.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 9.23% | ||
| ROIC | 5.03% |
ROA(3y)2.01%
ROA(5y)2.9%
ROE(3y)11.03%
ROE(5y)14.86%
ROIC(3y)5.39%
ROIC(5y)6.19%
1.3 Margins
RM has a worse Profit Margin (5.53%) than 68.63% of its industry peers.
In the last couple of years the Profit Margin of RM has declined.
RM has a better Operating Margin (20.11%) than 68.63% of its industry peers.
In the last couple of years the Operating Margin of RM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.11% | ||
| PM (TTM) | 5.53% | ||
| 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 0.88, we must say that RM is in the distress zone and has some risk of bankruptcy.
RM has a Altman-Z score (0.88) which is comparable to the rest of the industry.
RM has a debt to FCF ratio of 5.74. This is a neutral value as RM would need 5.74 years to pay back of all of its debts.
The Debt to FCF ratio of RM (5.74) is better than 60.78% of its industry peers.
A Debt/Equity ratio of 4.11 is on the high side and indicates that RM has dependencies on debt financing.
RM has a Debt to Equity ratio of 4.11. This is in the lower half of the industry: RM underperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.11 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.86
WACC5.83%
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.
Looking at the Current ratio, with a value of 0.06, RM is doing worse than 78.43% of the companies in the same industry.
A Quick Ratio of 0.06 indicates that RM may have some problems paying its short term obligations.
With a Quick 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
RM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.34%.
RM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.67% yearly.
RM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.57%.
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)-9.34%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%-55.13%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%6%
3.2 Future
RM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.08% yearly.
Based on estimates for the next years, RM will show a small growth in Revenue. The Revenue will grow by 3.56% on average per year.
EPS Next Y25.08%
EPS Next 2Y30.8%
EPS Next 3Y44.08%
EPS Next 5YN/A
Revenue Next Year6.4%
Revenue Next 2Y7.87%
Revenue Next 3Y3.56%
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 8.82, the valuation of RM can be described as very reasonable.
Based on the Price/Earnings ratio, RM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.85, RM is valued rather cheaply.
The Price/Forward Earnings ratio is 4.09, which indicates a rather cheap valuation of RM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RM indicates a rather cheap valuation: RM is cheaper than 94.12% 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 (20.89), we can say RM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 4.09 |
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 68.63% of the companies listed in the same industry.
90.20% 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 | 1.14 | ||
| EV/EBITDA | 13.15 |
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 44.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)5.29
EPS Next 2Y30.8%
EPS Next 3Y44.08%
5. Dividend
5.1 Amount
RM has a Yearly Dividend Yield of 4.15%, which is a nice return.
Compared to an average industry Dividend Yield of 4.42, RM pays a bit more dividend than its industry peers.
RM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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
36.45% of the earnings are spent on dividend by RM. This is a low number and sustainable payout ratio.
DP36.45%
EPS Next 2Y30.8%
EPS Next 3Y44.08%
NYSE:RM (5/15/2025, 4:00:02 PM)
29.12
-0.73 (-2.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners83.15%
Inst Owner Change0.52%
Ins Owners7.78%
Ins Owner Change-2.23%
Market Cap292.36M
Analysts80
Price Target39.53 (35.75%)
Short Float %3.11%
Short Ratio6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend1.23
Dividend Growth(5Y)N/A
DP36.45%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.11%
Min EPS beat(2)-7.33%
Max EPS beat(2)7.11%
EPS beat(4)2
Avg EPS beat(4)4.26%
Min EPS beat(4)-29.73%
Max EPS beat(4)47%
EPS beat(8)6
Avg EPS beat(8)17.56%
EPS beat(12)9
Avg EPS beat(12)13.9%
EPS beat(16)13
Avg EPS beat(16)16.86%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-0.36%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)0.16%
Revenue beat(8)2
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-1.36%
Revenue beat(16)6
Avg Revenue beat(16)-0.6%
PT rev (1m)-4.32%
PT rev (3m)2.65%
EPS NQ rev (1m)-38.3%
EPS NQ rev (3m)-44.67%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-10.01%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 4.09 | ||
| P/S | 0.49 | ||
| P/FCF | 1.14 | ||
| P/OCF | 1.07 | ||
| P/B | 0.82 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 13.15 |
EPS(TTM)3.3
EY11.33%
EPS(NY)7.12
Fwd EY24.44%
FCF(TTM)25.49
FCFY87.52%
OCF(TTM)27.3
OCFY93.76%
SpS59.48
BVpS35.65
TBVpS32.98
PEG (NY)0.35
PEG (5Y)5.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 9.23% | ||
| ROCE | 6.57% | ||
| ROIC | 5.03% | ||
| ROICexc | 5.04% | ||
| ROICexgc | 5.17% | ||
| OM | 20.11% | ||
| PM (TTM) | 5.53% | ||
| GM | N/A | ||
| FCFM | 42.85% |
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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.11 | ||
| Debt/FCF | 5.74 | ||
| Debt/EBITDA | 10.95 | ||
| Cap/Depr | 128.68% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 1.67 | ||
| Cash Conversion | 204.15% | ||
| Profit Quality | 774.71% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 0.88 |
F-Score5
WACC5.83%
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)-9.34%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%-55.13%
EPS Next Y25.08%
EPS Next 2Y30.8%
EPS Next 3Y44.08%
EPS Next 5YN/A
Revenue 1Y (TTM)6.57%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%6%
Revenue Next Year6.4%
Revenue Next 2Y7.87%
Revenue Next 3Y3.56%
Revenue Next 5YN/A
EBIT growth 1Y23.54%
EBIT growth 3Y0.21%
EBIT growth 5Y5.35%
EBIT Next Year-19.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y17.32%
FCF growth 3Y11.37%
FCF growth 5Y10.77%
OCF growth 1Y18.62%
OCF growth 3Y12.48%
OCF growth 5Y11.2%