WORLD ACCEPTANCE CORP (WRLD) Stock Fundamental Analysis
NASDAQ:WRLD - Nasdaq - US9814191048 - Common Stock - Currency: USD
WRLD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 51 industry peers in the Consumer Finance industry. WRLD scores excellent on profitability, but there are concerns on its financial health. WRLD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WRLD was profitable.
In the past year WRLD had a positive cash flow from operations.
Of the past 5 years WRLD 4 years were profitable.
WRLD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of WRLD (7.25%) is better than 84.31% of its industry peers.
With a decent Return On Equity value of 18.81%, WRLD is doing good in the industry, outperforming 76.47% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.05%, WRLD is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WRLD is significantly below the industry average of 10.59%.
The last Return On Invested Capital (8.05%) for WRLD is above the 3 year average (5.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.25% | ||
| ROE | 18.81% | ||
| ROIC | 8.05% |
ROA(3y)4.55%
ROA(5y)5.13%
ROE(3y)12.73%
ROE(5y)13.37%
ROIC(3y)5.08%
ROIC(5y)5.83%
1.3 Margins
The Profit Margin of WRLD (14.41%) is better than 64.71% of its industry peers.
In the last couple of years the Profit Margin of WRLD has grown nicely.
WRLD's Operating Margin of 18.24% is fine compared to the rest of the industry. WRLD outperforms 66.67% of its industry peers.
WRLD's Operating Margin has been stable in the last couple of years.
WRLD has a better Gross Margin (91.98%) than 84.31% of its industry peers.
WRLD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.24% | ||
| PM (TTM) | 14.41% | ||
| GM | 91.98% |
OM growth 3Y-6.98%
OM growth 5Y0.66%
PM growth 3Y-7.05%
PM growth 5Y14.58%
GM growth 3Y-1.35%
GM growth 5Y-1.14%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
WRLD has an Altman-Z score of 1.68. This is a bad value and indicates that WRLD is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.68, WRLD is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.31, WRLD belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
WRLD has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.31, WRLD is in line with its industry, outperforming 54.90% of the companies in the same 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 | 1.31 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.89
WACC9%
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.
With a Current ratio value of 0.13, WRLD is not doing good in the industry: 78.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.13 indicates that WRLD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.13, WRLD is doing worse than 78.43% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 32.94% on average over the past years. This is a very strong growth
EPS 1Y (TTM)23.38%
EPS 3Y24.44%
EPS 5Y32.94%
EPS Q2Q%33.5%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.77%
3.2 Future
Based on estimates for the next years, WRLD will show a decrease in Earnings Per Share. The EPS will decrease by -4.76% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.44, which indicates a very decent valuation of WRLD.
WRLD's Price/Earnings ratio is a bit cheaper when compared to the industry. WRLD is cheaper than 60.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. WRLD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.98, the valuation of WRLD can be described as very reasonable.
WRLD's Price/Forward Earnings ratio is in line with the industry average.
WRLD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
WRLD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WRLD is cheaper than 62.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WRLD is valued a bit cheaper than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.66 | ||
| EV/EBITDA | 12.83 |
4.3 Compensation for Growth
WRLD has a very decent profitability rating, which 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 |
154.48
-1.73 (-1.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners82.34%
Inst Owner Change-3.8%
Ins Owners8.63%
Ins Owner Change11.29%
Market Cap888.26M
Analysts45.71
Price Target140.76 (-8.88%)
Short Float %6.27%
Short Ratio11.71
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)-3.83%
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)0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 10.98 | ||
| P/S | 1.59 | ||
| P/FCF | 3.66 | ||
| P/OCF | 3.6 | ||
| P/B | 2.07 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)16.36
EY10.59%
EPS(NY)14.07
Fwd EY9.11%
FCF(TTM)42.21
FCFY27.32%
OCF(TTM)42.96
OCFY27.81%
SpS97.19
BVpS74.46
TBVpS71.74
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.25% | ||
| ROE | 18.81% | ||
| ROCE | 10.32% | ||
| ROIC | 8.05% | ||
| ROICexc | 8.18% | ||
| ROICexgc | 6.21% | ||
| OM | 18.24% | ||
| PM (TTM) | 14.41% | ||
| GM | 91.98% | ||
| FCFM | 43.43% |
ROA(3y)4.55%
ROA(5y)5.13%
ROE(3y)12.73%
ROE(5y)13.37%
ROIC(3y)5.08%
ROIC(5y)5.83%
ROICexc(3y)5.16%
ROICexc(5y)5.92%
ROICexgc(3y)3.95%
ROICexgc(5y)4.58%
ROCE(3y)6.52%
ROCE(5y)7.47%
ROICexcg growth 3Y-8.91%
ROICexcg growth 5Y-0.66%
ROICexc growth 3Y-8.44%
ROICexc growth 5Y-0.99%
OM growth 3Y-6.98%
OM growth 5Y0.66%
PM growth 3Y-7.05%
PM growth 5Y14.58%
GM growth 3Y-1.35%
GM growth 5Y-1.14%
F-Score8
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 | 1.68 |
F-Score8
WACC9%
ROIC/WACC0.89
Cap/Depr(3y)54.23%
Cap/Depr(5y)103.09%
Cap/Sales(3y)1.01%
Cap/Sales(5y)2.09%
Profit Quality(3y)726.05%
Profit Quality(5y)662.24%
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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 3Y-4.24%
EBIT growth 5Y1.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-20.38%
FCF growth 3Y8.92%
FCF growth 5Y2.95%
OCF growth 1Y-20.55%
OCF growth 3Y6.94%
OCF growth 5Y1.67%