REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
USA - NYSE:RM - US75902K1060 - Common Stock
38.79 USD
-0.99 (-2.49%)
38.79 USD
0 (0%)
Overall RM gets a fundamental rating of 4 out of 10. We evaluated RM against 55 industry peers in the Consumer Finance industry. RM has a medium profitability rating, but doesn't score so well on its financial health evaluation. RM scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
RM had positive earnings in the past year.
RM had a positive operating cash flow in the past year.
In the past 5 years RM has always been profitable.
In the past 5 years RM always reported a positive cash flow from operatings.
1.2 Ratios
RM has a Return On Assets (1.77%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.57%, RM is in line with its industry, outperforming 50.91% of the companies in the same industry.
RM has a better Return On Invested Capital (5.12%) than 65.45% 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 10.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 9.57% | ||
| ROIC | 5.12% |
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
With a Profit Margin value of 5.68%, RM is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
RM's Profit Margin has declined in the last couple of years.
RM has a better Operating Margin (20.43%) than 69.09% of its industry peers.
In the last couple of years the Operating Margin of RM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.43% | ||
| PM (TTM) | 5.68% | ||
| 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.
Compared to 1 year ago, RM has more shares outstanding
RM has less shares outstanding than it did 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 0.88. 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 (0.88) which is in line with its industry peers.
The Debt to FCF ratio of RM is 5.71, which is a neutral value as it means it would take RM, 5.71 years of fcf income to pay off all of its debts.
RM's Debt to FCF ratio of 5.71 is fine compared to the rest of the industry. RM outperforms 65.45% of its industry peers.
RM has a Debt/Equity ratio of 4.14. This is a high value indicating a heavy dependency on external financing.
RM has a worse Debt to Equity ratio (4.14) than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.83
WACC6.19%
2.3 Liquidity
RM has a Current Ratio of 0.04. 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 0.04 is on the low side compared to the rest of the industry. RM is outperformed by 81.82% of its industry peers.
RM has a Quick Ratio of 0.04. 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 0.04. This is amonst the worse of the industry: RM underperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
RM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.34%.
Measured over the past 5 years, RM shows a small growth in Earnings Per Share. The EPS has been growing by 1.67% on average per year.
The Revenue has been growing slightly by 7.31% in the past year.
RM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.59% yearly.
EPS 1Y (TTM)-10.34%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%19.77%
Revenue 1Y (TTM)7.31%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%10.08%
3.2 Future
The Earnings Per Share is expected to grow by 50.54% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.69% on average over the next years.
EPS Next Y13.27%
EPS Next 2Y28.18%
EPS Next 3Y50.54%
EPS Next 5YN/A
Revenue Next Year9.19%
Revenue Next 2Y7.91%
Revenue Next 3Y5.69%
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
RM is valuated reasonably with a Price/Earnings ratio of 11.18.
RM's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of RM to the average of the S&P500 Index (27.53), we can say RM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.68, the valuation of RM can be described as very cheap.
RM's Price/Forward Earnings ratio is rather cheap when compared to the industry. RM is cheaper than 83.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.04, RM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 5.68 |
4.2 Price Multiples
63.64% 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 cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.44 | ||
| EV/EBITDA | 13.52 |
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.
A more expensive valuation may be justified as RM's earnings are expected to grow with 50.54% in the coming years.
PEG (NY)0.84
PEG (5Y)6.71
EPS Next 2Y28.18%
EPS Next 3Y50.54%
5. Dividend
5.1 Amount
RM has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
RM's Dividend Yield is a higher than the industry average which is at 4.51.
RM's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| 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 33.96% of its income as dividend. This is a sustainable payout ratio.
DP33.96%
EPS Next 2Y28.18%
EPS Next 3Y50.54%
38.79
-0.99 (-2.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners85.72%
Inst Owner Change-0.02%
Ins Owners8.9%
Ins Owner Change3.74%
Market Cap380.14M
Analysts81.54
Price Target42.16 (8.69%)
Short Float %2.54%
Short Ratio4.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend1.23
Dividend Growth(5Y)N/A
DP33.96%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.3%
Min EPS beat(2)-7.33%
Max EPS beat(2)37.93%
EPS beat(4)2
Avg EPS beat(4)2%
Min EPS beat(4)-29.73%
Max EPS beat(4)37.93%
EPS beat(8)6
Avg EPS beat(8)20.19%
EPS beat(12)9
Avg EPS beat(12)15.5%
EPS beat(16)13
Avg EPS beat(16)17.72%
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)0.72%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)0.72%
Revenue beat(8)3
Avg Revenue beat(8)-0.92%
Revenue beat(12)4
Avg Revenue beat(12)-1.16%
Revenue beat(16)6
Avg Revenue beat(16)-0.65%
PT rev (1m)3.98%
PT rev (3m)6.67%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)0%
EPS NY rev (3m)4.8%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 5.68 | ||
| P/S | 0.62 | ||
| P/FCF | 1.44 | ||
| P/OCF | 1.35 | ||
| P/B | 1.05 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 13.52 |
EPS(TTM)3.47
EY8.95%
EPS(NY)6.84
Fwd EY17.62%
FCF(TTM)26.85
FCFY69.23%
OCF(TTM)28.7
OCFY73.99%
SpS62.41
BVpS37.04
TBVpS34.1
PEG (NY)0.84
PEG (5Y)6.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 9.57% | ||
| ROCE | 6.7% | ||
| ROIC | 5.12% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 5.28% | ||
| OM | 20.43% | ||
| PM (TTM) | 5.68% | ||
| GM | N/A | ||
| FCFM | 43.03% |
ROA(3y)2.01%
ROA(5y)2.9%
ROE(3y)11.03%
ROE(5y)14.86%
ROIC(3y)5.39%
ROIC(5y)6.19%
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-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | 5.71 | ||
| Debt/EBITDA | 10.76 | ||
| Cap/Depr | 123.36% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 201.48% | ||
| Profit Quality | 757.88% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | 0.88 |
F-Score7
WACC6.19%
ROIC/WACC0.83
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)-10.34%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%19.77%
EPS Next Y13.27%
EPS Next 2Y28.18%
EPS Next 3Y50.54%
EPS Next 5YN/A
Revenue 1Y (TTM)7.31%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%10.08%
Revenue Next Year9.19%
Revenue Next 2Y7.91%
Revenue Next 3Y5.69%
Revenue Next 5YN/A
EBIT growth 1Y22.11%
EBIT growth 3Y0.21%
EBIT growth 5Y5.35%
EBIT Next Year-23.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y21.84%
FCF growth 3Y11.37%
FCF growth 5Y10.77%
OCF growth 1Y22.51%
OCF growth 3Y12.48%
OCF growth 5Y11.2%