REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RM - US75902K1060 - Common Stock
40.08 USD
+0.3 (+0.75%)
40.08 USD
0 (0%)
Taking everything into account, RM scores 4 out of 10 in our fundamental rating. RM was compared to 55 industry peers in the Consumer Finance industry. While RM is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
RM had a positive operating cash flow in the past year.
Each year in the past 5 years RM has been profitable.
Each year in the past 5 years RM had a positive operating cash flow.
1.2 Ratios
RM has a Return On Assets of 2.04%. This is comparable to the rest of the industry: RM outperforms 52.73% of its industry peers.
RM has a Return On Equity (11.14%) which is comparable to the rest of the industry.
RM has a Return On Invested Capital of 5.36%. This is in the better half of the industry: RM outperforms 61.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RM is significantly below the industry average of 12.59%.
| 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 Profit Margin of 6.57%. This is in the lower half of the industry: RM underperforms 61.82% of its industry peers.
In the last couple of years the Profit Margin of RM has declined.
Looking at the Operating Margin, with a value of 21.62%, RM is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
RM's Operating Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RM is destroying value.
RM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RM has been reduced compared to 5 years ago.
The debt/assets ratio for RM has been reduced compared to a year ago.
2.2 Solvency
RM has an Altman-Z score of 0.90. This is a bad value and indicates that RM is not financially healthy and even has some risk of bankruptcy.
RM has a Altman-Z score (0.90) which is in line with 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.
RM has a better Debt to FCF ratio (5.70) 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.
Looking at the Debt to Equity ratio, with a value of 4.23, RM is doing worse than 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.85
WACC6.27%
2.3 Liquidity
A Current Ratio of 0.05 indicates that RM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.05, RM is doing worse than 81.82% of the companies in the same industry.
A Quick Ratio of 0.05 indicates that RM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.05, RM is doing worse than 81.82% of the companies in the same industry.
| 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.
RM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.67% yearly.
RM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.63%.
The Revenue has been growing by 10.59% on average over the past years. This is quite good.
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.
When comparing the Revenue 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
Based on the Price/Earnings ratio of 9.70, the valuation of RM can be described as reasonable.
RM's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of RM to the average of the S&P500 Index (26.56), we can say RM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.35, the valuation of RM can be described as very cheap.
81.82% of the companies in the same industry are more expensive than RM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RM to the average of the S&P500 Index (23.79), we can say RM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 6.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RM indicates a somewhat cheap valuation: RM is cheaper than 63.64% of the companies listed in the same industry.
90.91% of the companies in the same industry are more expensive than RM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.41 | ||
| EV/EBITDA | 12.92 |
4.3 Compensation for Growth
RM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as RM's earnings are expected to grow with 26.86% in the coming years.
PEG (NY)1.02
PEG (5Y)5.82
EPS Next 2Y23.15%
EPS Next 3Y26.86%
5. Dividend
5.1 Amount
RM has a Yearly Dividend Yield of 3.02%.
RM's Dividend Yield is a higher than the industry average which is at 2.44.
RM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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
28.16% of the earnings are spent on dividend by RM. This is a low number and sustainable payout ratio.
DP28.16%
EPS Next 2Y23.15%
EPS Next 3Y26.86%
40.08
+0.3 (+0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners82.3%
Inst Owner Change-2.47%
Ins Owners8.16%
Ins Owner Change-1.06%
Market Cap389.18M
Revenue(TTM)630.73M
Net Income(TTM)41.42M
Analysts81.54
Price Target47.26 (17.91%)
Short Float %3.11%
Short Ratio6.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend1.23
Dividend Growth(5Y)N/A
DP28.16%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)12.1%
PT rev (3m)16.56%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 6.35 | ||
| P/S | 0.62 | ||
| P/FCF | 1.41 | ||
| P/OCF | 1.33 | ||
| P/B | 1.05 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 12.92 |
EPS(TTM)4.13
EY10.3%
EPS(NY)6.31
Fwd EY15.74%
FCF(TTM)28.43
FCFY70.93%
OCF(TTM)30.16
OCFY75.25%
SpS64.96
BVpS38.3
TBVpS35.17
PEG (NY)1.02
PEG (5Y)5.82
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
WACC6.27%
ROIC/WACC0.85
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.
Can you provide the valuation status for REGIONAL MANAGEMENT CORP?
ChartMill assigns a valuation rating of 7 / 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 4 / 10.
What are the PE and PB ratios of REGIONAL MANAGEMENT CORP (RM) stock?
The Price/Earnings (PE) ratio for REGIONAL MANAGEMENT CORP (RM) is 9.7 and the Price/Book (PB) ratio is 1.05.
Can you provide the dividend sustainability for RM stock?
The dividend rating of REGIONAL MANAGEMENT CORP (RM) is 5 / 10 and the dividend payout ratio is 28.16%.