REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RM - US75902K1060 - Common Stock
39.09 USD
+0.09 (+0.23%)
We assign a fundamental rating of 4 out of 10 to RM. RM was compared to 53 industry peers in the Consumer Finance industry. RM has a bad profitability rating. Also its financial health evaluation is rather negative. A decent growth rate in combination with a cheap valuation! Better keep an eye on RM.
1. Profitability
1.1 Basic Checks
In the past year RM was profitable.
In the past year RM had a positive cash flow from operations.
RM had positive earnings in each of the past 5 years.
In the past 5 years RM always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.04%, RM perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
With a Return On Equity value of 11.14%, RM perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
RM has a Return On Invested Capital (5.36%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for RM is significantly below the industry average of 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 11.14% | ||
| ROIC | 5.36% |
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 (6.57%) than 65.45% of its industry peers.
RM's Profit Margin has declined in the last couple of years.
RM's Operating Margin of 21.62% is fine compared to the rest of the industry. RM outperforms 74.55% of its industry peers.
In the last couple of years the Operating Margin of RM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.62% | ||
| PM (TTM) | 6.57% | ||
| 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
RM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RM has been increased compared to 1 year ago.
RM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that RM is in the distress zone and has some risk of bankruptcy.
RM's Altman-Z score of 0.90 is in line compared to the rest of the industry. RM outperforms 58.18% of its industry peers.
RM has a debt to FCF ratio of 5.70. This is a neutral value as RM would need 5.70 years to pay back of all of its debts.
The Debt to FCF ratio of RM (5.70) is better than 74.55% of its industry peers.
RM has a Debt/Equity ratio of 4.23. This is a high value indicating a heavy dependency on external financing.
RM has a Debt to Equity ratio of 4.23. This is in the lower half of the industry: RM underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.86
WACC6.22%
2.3 Liquidity
RM has a Current Ratio of 0.05. This is a bad value and indicates that RM is not financially healthy enough and could expect problems in meeting its short term obligations.
RM's Current ratio of 0.05 is on the low side compared to the rest of the industry. RM is outperformed by 78.18% of its industry peers.
A Quick Ratio of 0.05 indicates that RM may have some problems paying its short term obligations.
RM has a worse Quick ratio (0.05) than 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.02% over the past year.
The Earnings Per Share has been growing slightly by 1.67% on average over the past years.
The Revenue has grown by 9.63% in the past year. This is quite good.
Measured over the past years, RM shows a quite strong growth in Revenue. The Revenue has been growing by 10.59% on average per year.
EPS 1Y (TTM)11.02%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%86.84%
Revenue 1Y (TTM)9.63%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%13.09%
3.2 Future
Based on estimates for the next years, RM will show a very strong growth in Earnings Per Share. The EPS will grow by 26.86% on average per year.
RM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.99% yearly.
EPS Next Y9.48%
EPS Next 2Y23.15%
EPS Next 3Y26.86%
EPS Next 5YN/A
Revenue Next Year9.45%
Revenue Next 2Y8.25%
Revenue Next 3Y7.99%
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
The Price/Earnings ratio is 9.46, which indicates a very decent valuation of RM.
63.64% of the companies in the same industry are more expensive than RM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RM to the average of the S&P500 Index (27.19), we can say RM is valued rather cheaply.
A Price/Forward Earnings ratio of 6.20 indicates a rather cheap valuation of RM.
81.82% of the companies in the same industry are more expensive than RM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.92. RM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
61.82% of the companies in the same industry are more expensive than RM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RM is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.37 | ||
| EV/EBITDA | 12.86 |
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 26.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)5.68
EPS Next 2Y23.15%
EPS Next 3Y26.86%
5. Dividend
5.1 Amount
RM has a Yearly Dividend Yield of 3.08%.
RM's Dividend Yield is a higher than the industry average which is at 2.60.
Compared to an average S&P500 Dividend Yield of 1.92, RM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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
RM pays out 28.16% of its income as dividend. This is a sustainable payout ratio.
DP28.16%
EPS Next 2Y23.15%
EPS Next 3Y26.86%
NYSE:RM (1/9/2026, 8:23:48 PM)
39.09
+0.09 (+0.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners82.25%
Inst Owner Change0.04%
Ins Owners8.06%
Ins Owner Change-4.84%
Market Cap379.56M
Revenue(TTM)630.73M
Net Income(TTM)41.42M
Analysts81.54
Price Target47.26 (20.9%)
Short Float %3.18%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend1.23
Dividend Growth(5Y)N/A
DP28.16%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.1%
Min EPS beat(2)-3.73%
Max EPS beat(2)37.93%
EPS beat(4)2
Avg EPS beat(4)8.5%
Min EPS beat(4)-7.33%
Max EPS beat(4)37.93%
EPS beat(8)5
Avg EPS beat(8)18.3%
EPS beat(12)8
Avg EPS beat(12)14.03%
EPS beat(16)12
Avg EPS beat(16)15.53%
Revenue beat(2)2
Avg Revenue beat(2)1.37%
Min Revenue beat(2)0.72%
Max Revenue beat(2)2.02%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)2.02%
Revenue beat(8)4
Avg Revenue beat(8)-0.48%
Revenue beat(12)4
Avg Revenue beat(12)-1.1%
Revenue beat(16)6
Avg Revenue beat(16)-0.83%
PT rev (1m)0%
PT rev (3m)12.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 6.2 | ||
| P/S | 0.6 | ||
| P/FCF | 1.37 | ||
| P/OCF | 1.3 | ||
| P/B | 1.02 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 12.86 |
EPS(TTM)4.13
EY10.57%
EPS(NY)6.31
Fwd EY16.14%
FCF(TTM)28.43
FCFY72.73%
OCF(TTM)30.16
OCFY77.15%
SpS64.96
BVpS38.3
TBVpS35.17
PEG (NY)1
PEG (5Y)5.68
Graham Number59.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 11.14% | ||
| ROCE | 7.01% | ||
| ROIC | 5.36% | ||
| ROICexc | 5.37% | ||
| ROICexgc | 5.52% | ||
| OM | 21.62% | ||
| PM (TTM) | 6.57% | ||
| GM | N/A | ||
| FCFM | 43.77% |
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%
ROICexgc growth 3Y0.96%
ROICexgc 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-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 5.7 | ||
| Debt/EBITDA | 10.38 | ||
| Cap/Depr | 109.54% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 1.8 | ||
| Cash Conversion | 193.07% | ||
| Profit Quality | 666.53% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 0.9 |
F-Score6
WACC6.22%
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)11.02%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%86.84%
EPS Next Y9.48%
EPS Next 2Y23.15%
EPS Next 3Y26.86%
EPS Next 5YN/A
Revenue 1Y (TTM)9.63%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%13.09%
Revenue Next Year9.45%
Revenue Next 2Y8.25%
Revenue Next 3Y7.99%
Revenue Next 5YN/A
EBIT growth 1Y31.07%
EBIT growth 3Y0.21%
EBIT growth 5Y5.35%
EBIT Next Year-23.44%
EBIT Next 3Y6.38%
EBIT Next 5YN/A
FCF growth 1Y21.02%
FCF growth 3Y11.37%
FCF growth 5Y10.77%
OCF growth 1Y20.86%
OCF growth 3Y12.48%
OCF growth 5Y11.2%
REGIONAL MANAGEMENT CORP / RM FAQ
Can you provide the ChartMill fundamental rating for REGIONAL MANAGEMENT CORP?
ChartMill assigns a fundamental rating of 4 / 10 to RM.
What is the valuation status for RM stock?
ChartMill assigns a valuation rating of 8 / 10 to REGIONAL MANAGEMENT CORP (RM). This can be considered as Undervalued.
Can you provide the profitability details for REGIONAL MANAGEMENT CORP?
REGIONAL MANAGEMENT CORP (RM) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for RM stock?
The Earnings per Share (EPS) of REGIONAL MANAGEMENT CORP (RM) is expected to grow by 9.48% in the next year.
Is the dividend of REGIONAL MANAGEMENT CORP sustainable?
The dividend rating of REGIONAL MANAGEMENT CORP (RM) is 5 / 10 and the dividend payout ratio is 28.16%.