REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
NYSE:RM - New York Stock Exchange, Inc. - US75902K1060 - Common Stock - Currency: USD
Overall RM gets a fundamental rating of 5 out of 10. We evaluated RM against 52 industry peers in the Consumer Finance industry. There are concerns on the financial health of RM while its profitability can be described as average. 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.
RM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.74%, RM is in line with its industry, outperforming 48.08% of the companies in the same industry.
RM has a Return On Equity (9.23%) which is in line with its industry peers.
RM has a Return On Invested Capital of 5.03%. This is in the better half of the industry: RM outperforms 63.46% of its industry peers.
RM had an Average Return On Invested Capital over the past 3 years of 5.39%. This is below the industry average of 10.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 9.23% | ||
| ROIC | 5.03% |
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 (5.53%) than 67.31% of its industry peers.
In the last couple of years the Profit Margin of RM has declined.
The Operating Margin of RM (20.11%) is better than 69.23% of its industry peers.
RM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.11% | ||
| PM (TTM) | 5.53% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RM is destroying value.
Compared to 1 year ago, RM has more shares outstanding
RM has less shares outstanding than it did 5 years ago.
RM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that RM is in the distress zone and has some risk of bankruptcy.
RM has a better Altman-Z score (0.88) than 61.54% of its industry peers.
RM has a debt to FCF ratio of 5.74. This is a neutral value as RM would need 5.74 years to pay back of all of its debts.
RM has a Debt to FCF ratio of 5.74. This is in the better half of the industry: RM outperforms 61.54% of its industry peers.
RM has a Debt/Equity ratio of 4.11. This is a high value indicating a heavy dependency on external financing.
RM has a Debt to Equity ratio of 4.11. This is in the lower half of the industry: RM underperforms 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.11 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.87
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.06 indicates that RM may have some problems paying its short term obligations.
RM has a worse Current ratio (0.06) than 82.69% of its industry peers.
RM has a Quick Ratio of 0.06. 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 has a Quick ratio of 0.06. This is amonst the worse of the industry: RM underperforms 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The earnings per share for RM have decreased by -9.34% in the last 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 a small growth in Revenue. In the last year, the Revenue has grown by 6.57%.
The Revenue has been growing by 10.59% on average over the past years. This is quite good.
EPS 1Y (TTM)-9.34%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%-55.13%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%6%
3.2 Future
The Earnings Per Share is expected to grow by 42.80% on average over the next years. This is a very strong growth
RM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.56% yearly.
EPS Next Y8.08%
EPS Next 2Y27.15%
EPS Next 3Y42.8%
EPS Next 5YN/A
Revenue Next Year6.4%
Revenue Next 2Y7.87%
Revenue Next 3Y3.56%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
RM is valuated reasonably with a Price/Earnings ratio of 9.66.
67.31% of the companies in the same industry are more expensive than RM, based on the Price/Earnings ratio.
RM is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
RM is valuated cheaply with a Price/Forward Earnings ratio of 4.74.
Based on the Price/Forward Earnings ratio, RM is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RM to the average of the S&P500 Index (21.76), we can say RM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 4.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RM is valued a bit cheaper than 61.54% of the companies in the same industry.
RM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RM is cheaper than 90.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.24 | ||
| EV/EBITDA | 13.19 |
4.3 Compensation for Growth
The 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 42.80% in the coming years.
PEG (NY)1.2
PEG (5Y)5.8
EPS Next 2Y27.15%
EPS Next 3Y42.8%
5. Dividend
5.1 Amount
RM has a Yearly Dividend Yield of 4.11%, which is a nice return.
RM's Dividend Yield is rather good when compared to the industry average which is at 3.66. RM pays more dividend than 80.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, RM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
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 36.45% of its income as dividend. This is a sustainable payout ratio.
DP36.45%
EPS Next 2Y27.15%
EPS Next 3Y42.8%
31.89
+1.05 (+3.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners85.71%
Inst Owner Change-0.02%
Ins Owners8.95%
Ins Owner Change2.78%
Market Cap316.35M
Analysts80
Price Target39.53 (23.96%)
Short Float %2.55%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend1.23
Dividend Growth(5Y)N/A
DP36.45%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.11%
Min EPS beat(2)-7.33%
Max EPS beat(2)7.11%
EPS beat(4)2
Avg EPS beat(4)4.26%
Min EPS beat(4)-29.73%
Max EPS beat(4)47%
EPS beat(8)6
Avg EPS beat(8)17.56%
EPS beat(12)9
Avg EPS beat(12)13.9%
EPS beat(16)13
Avg EPS beat(16)16.86%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-0.36%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)0.16%
Revenue beat(8)2
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-1.36%
Revenue beat(16)6
Avg Revenue beat(16)-0.6%
PT rev (1m)0%
PT rev (3m)-7.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 4.74 | ||
| P/S | 0.53 | ||
| P/FCF | 1.24 | ||
| P/OCF | 1.15 | ||
| P/B | 0.88 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 13.19 |
EPS(TTM)3.3
EY10.35%
EPS(NY)6.73
Fwd EY21.09%
FCF(TTM)25.79
FCFY80.89%
OCF(TTM)27.63
OCFY86.65%
SpS60.2
BVpS36.08
TBVpS33.38
PEG (NY)1.2
PEG (5Y)5.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 9.23% | ||
| ROCE | 6.57% | ||
| ROIC | 5.03% | ||
| ROICexc | 5.04% | ||
| ROICexgc | 5.17% | ||
| OM | 20.11% | ||
| PM (TTM) | 5.53% | ||
| GM | N/A | ||
| FCFM | 42.85% |
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%
ROICexcg growth 3Y0.96%
ROICexcg 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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.11 | ||
| Debt/FCF | 5.74 | ||
| Debt/EBITDA | 10.95 | ||
| Cap/Depr | 128.68% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 1.67 | ||
| Cash Conversion | 204.15% | ||
| Profit Quality | 774.71% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 0.88 |
F-Score5
WACC5.75%
ROIC/WACC0.87
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)-9.34%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%-55.13%
EPS Next Y8.08%
EPS Next 2Y27.15%
EPS Next 3Y42.8%
EPS Next 5YN/A
Revenue 1Y (TTM)6.57%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%6%
Revenue Next Year6.4%
Revenue Next 2Y7.87%
Revenue Next 3Y3.56%
Revenue Next 5YN/A
EBIT growth 1Y23.54%
EBIT growth 3Y0.21%
EBIT growth 5Y5.35%
EBIT Next Year-23.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y17.32%
FCF growth 3Y11.37%
FCF growth 5Y10.77%
OCF growth 1Y18.62%
OCF growth 3Y12.48%
OCF growth 5Y11.2%