WORLD ACCEPTANCE CORP (WRLD) Stock Fundamental Analysis
NASDAQ:WRLD - Nasdaq - US9814191048 - Common Stock - Currency: USD
WRLD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 52 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.
In the past 5 years WRLD has always been profitable.
WRLD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
WRLD's Return On Assets of 7.25% is amongst the best of the industry. WRLD outperforms 84.62% of its industry peers.
The Return On Equity of WRLD (18.81%) is better than 78.85% of its industry peers.
With a decent Return On Invested Capital value of 8.15%, WRLD is doing good in the industry, outperforming 73.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WRLD is below the industry average of 10.31%.
The 3 year average ROIC (6.85%) for WRLD is below the current ROIC(8.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.25% | ||
| ROE | 18.81% | ||
| ROIC | 8.15% |
ROA(3y)6.04%
ROA(5y)6.36%
ROE(3y)14.72%
ROE(5y)16.08%
ROIC(3y)6.85%
ROIC(5y)7.25%
1.3 Margins
With a decent Profit Margin value of 14.41%, WRLD is doing good in the industry, outperforming 65.38% of the companies in the same industry.
In the last couple of years the Profit Margin of WRLD has grown nicely.
The Operating Margin of WRLD (18.24%) is better than 67.31% 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 91.98%, WRLD belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Gross Margin of WRLD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.24% | ||
| PM (TTM) | 14.41% | ||
| GM | 91.98% |
OM growth 3Y20.74%
OM growth 5Y27.37%
PM growth 3Y19.74%
PM growth 5Y27.16%
GM growth 3Y-0.65%
GM growth 5Y-0.67%
2. Health
2.1 Basic Checks
WRLD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
WRLD has an Altman-Z score of 1.63. This is a bad value and indicates that WRLD is not financially healthy and even has some risk of bankruptcy.
WRLD has a better Altman-Z score (1.63) than 69.23% of its industry peers.
The Debt to FCF ratio of WRLD is 2.31, which is a good value as it means it would take WRLD, 2.31 years of fcf income to pay off all of its debts.
WRLD's Debt to FCF ratio of 2.31 is amongst the best of the industry. WRLD outperforms 82.69% of its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that WRLD has dependencies on debt financing.
WRLD's Debt to Equity ratio of 1.31 is in line compared to the rest of the industry. WRLD outperforms 55.77% of its industry peers.
Even though the debt/equity ratio score it not favorable for WRLD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.89
WACC9.11%
2.3 Liquidity
WRLD has a Current Ratio of 0.13. 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 Current ratio of 0.13 is on the low side compared to the rest of the industry. WRLD is outperformed by 78.85% of its industry peers.
WRLD has a Quick Ratio of 0.13. This is a bad value and indicates that WRLD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.13, WRLD is not doing good in the industry: 78.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.38% over the past year.
Measured over the past years, WRLD shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.94% on average per year.
WRLD shows a decrease in Revenue. In the last year, the revenue decreased by -1.46%.
WRLD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.87% yearly.
EPS 1Y (TTM)23.38%
EPS 3Y24.44%
EPS 5Y32.94%
EPS Q2Q%33.5%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.87%
Sales Q2Q%3.77%
3.2 Future
WRLD is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.76% yearly.
WRLD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.30% yearly.
EPS Next Y-14.02%
EPS Next 2Y-4.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.41%
Revenue Next 2Y-0.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 9.60, the valuation of WRLD can be described as very reasonable.
Based on the Price/Earnings ratio, WRLD is valued a bit cheaper than the industry average as 63.46% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.34. WRLD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.17, the valuation of WRLD can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WRLD is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WRLD to the average of the S&P500 Index (21.03), we can say WRLD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WRLD is valued a bit cheaper than 67.31% of the companies in the same industry.
73.08% of the companies in the same industry are more expensive than WRLD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.44 | ||
| EV/EBITDA | 12.26 |
4.3 Compensation for Growth
The decent profitability rating of WRLD may justify a higher PE ratio.
WRLD's earnings are expected to decrease with -4.76% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-4.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WRLD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
157.05
-2.41 (-1.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners84.55%
Inst Owner Change-3.82%
Ins Owners10.05%
Ins Owner Change16.23%
Market Cap833.94M
Analysts45.71
Price Target140.76 (-10.37%)
Short Float %7.06%
Short Ratio9.5
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)2
Avg EPS beat(2)59.72%
Min EPS beat(2)22.86%
Max EPS beat(2)96.57%
EPS beat(4)4
Avg EPS beat(4)40.17%
Min EPS beat(4)3.84%
Max EPS beat(4)96.57%
EPS beat(8)8
Avg EPS beat(8)72.16%
EPS beat(12)9
Avg EPS beat(12)-95.48%
EPS beat(16)11
Avg EPS beat(16)-72.14%
Revenue beat(2)1
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-7.66%
Max Revenue beat(2)3.13%
Revenue beat(4)2
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-9.94%
Max Revenue beat(4)4.55%
Revenue beat(8)5
Avg Revenue beat(8)0.12%
Revenue beat(12)6
Avg Revenue beat(12)-0.74%
Revenue beat(16)7
Avg Revenue beat(16)-0.8%
PT rev (1m)0%
PT rev (3m)-3.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 11.17 | ||
| P/S | 1.49 | ||
| P/FCF | 3.44 | ||
| P/OCF | 3.38 | ||
| P/B | 1.95 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 12.26 |
EPS(TTM)16.36
EY10.42%
EPS(NY)14.07
Fwd EY8.96%
FCF(TTM)45.7
FCFY29.1%
OCF(TTM)46.52
OCFY29.62%
SpS105.24
BVpS80.63
TBVpS77.68
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.25% | ||
| ROE | 18.81% | ||
| ROCE | 10.32% | ||
| ROIC | 8.15% | ||
| ROICexc | 8.28% | ||
| ROICexgc | 6.28% | ||
| OM | 18.24% | ||
| PM (TTM) | 14.41% | ||
| GM | 91.98% | ||
| FCFM | 43.43% |
ROA(3y)6.04%
ROA(5y)6.36%
ROE(3y)14.72%
ROE(5y)16.08%
ROIC(3y)6.85%
ROIC(5y)7.25%
ROICexc(3y)6.94%
ROICexc(5y)7.37%
ROICexgc(3y)5.36%
ROICexgc(5y)5.7%
ROCE(3y)8.67%
ROCE(5y)9.19%
ROICexcg growth 3Y27.93%
ROICexcg growth 5Y25.58%
ROICexc growth 3Y26.78%
ROICexc growth 5Y25.53%
OM growth 3Y20.74%
OM growth 5Y27.37%
PM growth 3Y19.74%
PM growth 5Y27.16%
GM growth 3Y-0.65%
GM growth 5Y-0.67%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 4.98 | ||
| Cap/Depr | 41.33% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 2.31 | ||
| Cash Conversion | 219.76% | ||
| Profit Quality | 301.39% | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 1.63 |
F-Score7
WACC9.11%
ROIC/WACC0.89
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.38%
EPS 3Y24.44%
EPS 5Y32.94%
EPS Q2Q%33.5%
EPS Next Y-14.02%
EPS Next 2Y-4.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-1.02%
Revenue growth 5Y-0.87%
Sales Q2Q%3.77%
Revenue Next Year0.41%
Revenue Next 2Y-0.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.23%
EBIT growth 3Y19.51%
EBIT growth 5Y26.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.71%
OCF growth 3YN/A
OCF growth 5YN/A