WORLD ACCEPTANCE CORP (WRLD) Stock Fundamental Analysis
USA - NASDAQ:WRLD - US9814191048 - Common Stock
155 USD
-22.75 (-12.8%)
155 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WRLD. WRLD was compared to 55 industry peers in the Consumer Finance industry. WRLD scores excellent on profitability, but 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
WRLD had positive earnings in the past year.
In the past year WRLD had a positive cash flow from operations.
In the past 5 years WRLD has always been profitable.
In the past 5 years WRLD always reported a positive cash flow from operatings.
1.2 Ratios
WRLD's Return On Assets of 7.92% is amongst the best of the industry. WRLD outperforms 81.82% of its industry peers.
WRLD's Return On Equity of 18.96% is fine compared to the rest of the industry. WRLD outperforms 80.00% 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 10.99%.
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
WRLD has a better Profit Margin (14.29%) than 61.82% of its industry peers.
In the last couple of years the Profit Margin of WRLD has grown nicely.
WRLD has a better Operating Margin (17.77%) than 67.27% of its industry peers.
In the last couple of years the Operating Margin of WRLD has grown nicely.
With an excellent Gross Margin value of 92.48%, WRLD belongs to the best of the industry, outperforming 85.45% 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 | 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.
Compared to 1 year ago, WRLD has less shares outstanding
WRLD has less shares outstanding than it did 5 years ago.
WRLD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.81 indicates that WRLD is not a great score, but indicates only limited risk for bankruptcy at the moment.
WRLD has a Altman-Z score of 1.81. This is in the better half 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.
Looking at the Debt to FCF ratio, with a value of 1.81, WRLD belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
WRLD has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
WRLD has a Debt to Equity ratio of 1.10. This is comparable to the rest of the industry: WRLD outperforms 60.00% 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 | 1.1 | ||
| Debt/FCF | 1.81 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.79
WACC11.21%
2.3 Liquidity
WRLD has a Current 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.
Looking at the Current ratio, with a value of 0.07, WRLD is doing worse than 80.00% of the companies in the same industry.
A Quick Ratio of 0.07 indicates that WRLD may have some problems paying its short term obligations.
With a Quick ratio value of 0.07, WRLD is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
The current and quick ratio evaluation for WRLD is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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.
Looking at the last year, WRLD shows a decrease in Revenue. The Revenue has decreased by -1.46% in the last year.
Measured over the past years, WRLD shows a decrease in Revenue. The Revenue has been decreasing by -0.87% on average per year.
EPS 1Y (TTM)-28.96%
EPS 3Y24.44%
EPS 5Y32.94%
EPS Q2Q%-109.52%
Revenue 1Y (TTM)-1.46%
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
A Price/Earnings ratio of 14.83 indicates a correct valuation of WRLD.
Based on the Price/Earnings ratio, WRLD is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
WRLD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.77, 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.
The average S&P500 Price/Forward Earnings ratio is at 23.33. WRLD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WRLD is valued a bit cheaper than 69.09% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WRLD indicates a somewhat cheap valuation: WRLD is cheaper than 70.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.25 | ||
| EV/EBITDA | 11.82 |
4.3 Compensation for Growth
WRLD has an outstanding profitability rating, which may justify a higher PE ratio.
WRLD's earnings are expected to decrease with -6.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.45
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 |
155
-22.75 (-12.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners76.76%
Inst Owner Change0.01%
Ins Owners18.24%
Ins Owner Change16.45%
Market Cap844.75M
Revenue(TTM)564.84M
Net Income(TTM)81.14M
Analysts45.71
Price Target160.65 (3.65%)
Short Float %5.73%
Short Ratio5.61
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%
PT rev (3m)14.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.35%
EPS NY rev (1m)-12.69%
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 | 14.83 | ||
| Fwd PE | 10.77 | ||
| P/S | 1.49 | ||
| P/FCF | 3.25 | ||
| P/OCF | 3.2 | ||
| P/B | 1.97 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)10.45
EY6.74%
EPS(NY)14.39
Fwd EY9.29%
FCF(TTM)47.76
FCFY30.81%
OCF(TTM)48.42
OCFY31.24%
SpS104.18
BVpS78.5
TBVpS75.95
PEG (NY)N/A
PEG (5Y)0.45
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 | 1.81 |
F-Score8
WACC11.21%
ROIC/WACC0.79
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)-1.46%
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%