WORLD ACCEPTANCE CORP (WRLD) Stock Fundamental Analysis
USA - NASDAQ:WRLD - US9814191048 - Common Stock
127.47 USD
+1.05 (+0.83%)
127.47 USD
0 (0%)
WRLD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Consumer Finance industry. While WRLD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WRLD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WRLD was profitable.
WRLD had a positive operating cash flow in the past year.
Each year in the past 5 years WRLD has been profitable.
Each year in the past 5 years WRLD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.92%, WRLD belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Return On Equity of WRLD (18.96%) is better than 76.36% of its industry peers.
The Return On Invested Capital of WRLD (8.86%) is better than 74.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WRLD is below the industry average of 10.97%.
The 3 year average ROIC (6.82%) for WRLD is below the current ROIC(8.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.92% | ||
| ROE | 18.96% | ||
| ROIC | 8.86% |
ROA(3y)6.04%
ROA(5y)6.36%
ROE(3y)14.72%
ROE(5y)16.08%
ROIC(3y)6.82%
ROIC(5y)7.24%
1.3 Margins
The Profit Margin of WRLD (14.29%) is better than 61.82% of its industry peers.
In the last couple of years the Profit Margin of WRLD has grown nicely.
WRLD has a Operating Margin of 17.77%. This is in the better half of the industry: WRLD outperforms 67.27% of its industry peers.
WRLD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 92.48%, WRLD belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
WRLD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.77% | ||
| PM (TTM) | 14.29% | ||
| GM | 92.48% |
OM growth 3Y20.38%
OM growth 5Y27.14%
PM growth 3Y19.74%
PM growth 5Y27.16%
GM growth 3Y-0.71%
GM growth 5Y-0.71%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WRLD is destroying value.
WRLD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WRLD has been reduced compared to 5 years ago.
Compared to 1 year ago, WRLD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that WRLD is in the distress zone and has some risk of bankruptcy.
WRLD's Altman-Z score of 1.66 is fine compared to the rest of the industry. WRLD outperforms 69.09% of its industry peers.
The Debt to FCF ratio of WRLD is 1.81, which is an excellent value as it means it would take WRLD, only 1.81 years of fcf income to pay off all of its debts.
WRLD has a Debt to FCF ratio of 1.81. This is amongst the best in the industry. WRLD outperforms 85.45% of its industry peers.
A Debt/Equity ratio of 1.10 is on the high side and indicates that WRLD has dependencies on debt financing.
WRLD has a Debt to Equity ratio (1.10) which is comparable to the rest of the industry.
Although WRLD does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 1.81 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.78
WACC11.3%
2.3 Liquidity
A Current Ratio of 0.07 indicates that WRLD may have some problems paying its short term obligations.
The Current ratio of WRLD (0.07) is worse than 80.00% of its industry peers.
WRLD has a Quick Ratio of 0.07. This is a bad value and indicates that WRLD is not financially healthy enough and could expect problems in meeting its short term obligations.
WRLD's Quick ratio of 0.07 is on the low side compared to the rest of the industry. WRLD is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
WRLD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.96%.
WRLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.94% yearly.
The Revenue has been growing slightly by 2.31% in the past year.
WRLD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.87% yearly.
EPS 1Y (TTM)-28.96%
EPS 3Y24.44%
EPS 5Y32.94%
EPS Q2Q%-109.52%
Revenue 1Y (TTM)2.31%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.87%
Sales Q2Q%2.33%
3.2 Future
The Earnings Per Share is expected to decrease by -6.21% on average over the next years.
Based on estimates for the next years, WRLD will show a small growth in Revenue. The Revenue will grow by 3.11% on average per year.
EPS Next Y-29.67%
EPS Next 2Y-6.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.67%
Revenue Next 2Y3.11%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.20, which indicates a correct valuation of WRLD.
WRLD's Price/Earnings ratio is in line with the industry average.
WRLD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.11.
Based on the Price/Forward Earnings ratio of 8.86, the valuation of WRLD can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as WRLD.
The average S&P500 Price/Forward Earnings ratio is at 22.55. WRLD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 8.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WRLD is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WRLD indicates a somewhat cheap valuation: WRLD is cheaper than 74.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.67 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
The excellent profitability rating of WRLD may justify a higher PE ratio.
A cheap valuation may be justified as WRLD's earnings are expected to decrease with -6.21% in the coming years.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-6.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WRLD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
127.47
+1.05 (+0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners76.76%
Inst Owner Change1.01%
Ins Owners18.24%
Ins Owner Change10.14%
Market Cap694.71M
Revenue(TTM)570.82M
Net Income(TTM)81.14M
Analysts45.71
Price Target159.12 (24.83%)
Short Float %6.34%
Short Ratio5.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-26.01%
Min EPS beat(2)-88.63%
Max EPS beat(2)36.6%
EPS beat(4)3
Avg EPS beat(4)16.85%
Min EPS beat(4)-88.63%
Max EPS beat(4)96.57%
EPS beat(8)7
Avg EPS beat(8)25.85%
EPS beat(12)10
Avg EPS beat(12)30.08%
EPS beat(16)10
Avg EPS beat(16)-78.74%
Revenue beat(2)2
Avg Revenue beat(2)5.48%
Min Revenue beat(2)4.86%
Max Revenue beat(2)6.11%
Revenue beat(4)3
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-7.66%
Max Revenue beat(4)6.11%
Revenue beat(8)5
Avg Revenue beat(8)0.41%
Revenue beat(12)7
Avg Revenue beat(12)-0.1%
Revenue beat(16)8
Avg Revenue beat(16)-0.09%
PT rev (1m)-0.95%
PT rev (3m)13.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 8.86 | ||
| P/S | 1.22 | ||
| P/FCF | 2.67 | ||
| P/OCF | 2.63 | ||
| P/B | 1.62 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)10.45
EY8.2%
EPS(NY)14.39
Fwd EY11.29%
FCF(TTM)47.76
FCFY37.46%
OCF(TTM)48.42
OCFY37.99%
SpS104.18
BVpS78.5
TBVpS75.95
PEG (NY)N/A
PEG (5Y)0.37
Graham Number135.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.92% | ||
| ROE | 18.96% | ||
| ROCE | 11.22% | ||
| ROIC | 8.86% | ||
| ROICexc | 8.94% | ||
| ROICexgc | 6.86% | ||
| OM | 17.77% | ||
| PM (TTM) | 14.29% | ||
| GM | 92.48% | ||
| FCFM | 45.84% |
ROA(3y)6.04%
ROA(5y)6.36%
ROE(3y)14.72%
ROE(5y)16.08%
ROIC(3y)6.82%
ROIC(5y)7.24%
ROICexc(3y)6.91%
ROICexc(5y)7.35%
ROICexgc(3y)5.34%
ROICexgc(5y)5.69%
ROCE(3y)8.64%
ROCE(5y)9.16%
ROICexgc growth 3Y27.55%
ROICexgc growth 5Y25.35%
ROICexc growth 3Y26.4%
ROICexc growth 5Y25.3%
OM growth 3Y20.38%
OM growth 5Y27.14%
PM growth 3Y19.74%
PM growth 5Y27.16%
GM growth 3Y-0.71%
GM growth 5Y-0.71%
F-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 1.81 | ||
| Debt/EBITDA | 4.26 | ||
| Cap/Depr | 37.01% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 2.41 | ||
| Cash Conversion | 238.33% | ||
| Profit Quality | 320.77% | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | 1.66 |
F-Score8
WACC11.3%
ROIC/WACC0.78
Cap/Depr(3y)48.35%
Cap/Depr(5y)66.8%
Cap/Sales(3y)0.88%
Cap/Sales(5y)1.35%
Profit Quality(3y)654.4%
Profit Quality(5y)537%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.96%
EPS 3Y24.44%
EPS 5Y32.94%
EPS Q2Q%-109.52%
EPS Next Y-29.67%
EPS Next 2Y-6.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.31%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.87%
Sales Q2Q%2.33%
Revenue Next Year2.67%
Revenue Next 2Y3.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3%
EBIT growth 3Y19.16%
EBIT growth 5Y26.03%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-9.31%
FCF growth 3Y-2.02%
FCF growth 5Y-0.38%
OCF growth 1Y-9.96%
OCF growth 3Y-2.28%
OCF growth 5Y-1.99%
WORLD ACCEPTANCE CORP / WRLD FAQ
What is the ChartMill fundamental rating of WORLD ACCEPTANCE CORP (WRLD) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WRLD.
What is the valuation status of WORLD ACCEPTANCE CORP (WRLD) stock?
ChartMill assigns a valuation rating of 5 / 10 to WORLD ACCEPTANCE CORP (WRLD). This can be considered as Fairly Valued.
What is the profitability of WRLD stock?
WORLD ACCEPTANCE CORP (WRLD) has a profitability rating of 8 / 10.
What is the financial health of WORLD ACCEPTANCE CORP (WRLD) stock?
The financial health rating of WORLD ACCEPTANCE CORP (WRLD) is 5 / 10.
What is the expected EPS growth for WORLD ACCEPTANCE CORP (WRLD) stock?
The Earnings per Share (EPS) of WORLD ACCEPTANCE CORP (WRLD) is expected to decline by -29.67% in the next year.