REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
NYSE:RM - New York Stock Exchange, Inc. - US75902K1060 - Common Stock - Currency: USD
RM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 53 industry peers in the Consumer Finance industry. RM may be in some trouble as it scores bad on both profitability and health. 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.
In the past year RM had a positive cash flow from operations.
Each year in the past 5 years RM has been profitable.
Of the past 5 years RM 4 years had a positive operating cash flow.
1.2 Ratios
RM's Return On Assets of 1.30% is in line compared to the rest of the industry. RM outperforms 51.92% of its industry peers.
RM has a Return On Equity (6.73%) which is comparable to the rest of the industry.
RM has a better Return On Invested Capital (4.56%) than 67.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RM is below the industry average of 7.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 6.73% | ||
| ROIC | 4.56% |
ROA(3y)2.01%
ROA(5y)2.9%
ROE(3y)11.03%
ROE(5y)14.86%
ROIC(3y)4.77%
ROIC(5y)5.82%
1.3 Margins
The Profit Margin of RM (4.13%) is worse than 69.23% of its industry peers.
In the last couple of years the Profit Margin of RM has declined.
RM's Operating Margin of 18.08% is fine compared to the rest of the industry. RM outperforms 69.23% of its industry peers.
RM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.08% | ||
| PM (TTM) | 4.13% | ||
| 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.
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.
RM has a better debt/assets ratio than last year.
2.2 Solvency
RM has an Altman-Z score of 0.89. 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 (0.89) which is comparable to the rest of the industry.
RM has a debt to FCF ratio of 5.44. This is a neutral value as RM would need 5.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.44, RM is in line with its industry, outperforming 57.69% of the companies in the same industry.
RM has a Debt/Equity ratio of 3.94. This is a high value indicating a heavy dependency on external financing.
RM has a Debt to Equity ratio of 3.94. This is in the lower half of the industry: RM underperforms 67.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.94 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.77
WACC5.93%
2.3 Liquidity
RM has a Current 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.
The Current ratio of RM (0.06) is worse than 80.77% of its industry peers.
A Quick Ratio of 0.06 indicates that RM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.06, RM is doing worse than 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
RM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.60%, which is quite impressive.
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.
RM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.72%.
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)39.6%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%81.48%
Revenue 1Y (TTM)6.72%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%9.3%
3.2 Future
RM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.08% yearly.
Based on estimates for the next years, RM will show a small growth in Revenue. The Revenue will grow by 6.46% on average per year.
EPS Next Y25.09%
EPS Next 2Y31.52%
EPS Next 3Y44.08%
EPS Next 5YN/A
Revenue Next Year6.69%
Revenue Next 2Y6.46%
Revenue Next 3YN/A
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.
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
With a Price/Earnings ratio of 8.24, the valuation of RM can be described as very reasonable.
76.92% 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 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.59, which indicates a rather cheap valuation of RM.
82.69% 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 22.68. RM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RM is valued a bit cheaper than 65.38% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RM indicates a rather cheap valuation: RM is cheaper than 90.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.34 | ||
| EV/EBITDA | 14.76 |
4.3 Compensation for Growth
The 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 44.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)4.94
EPS Next 2Y31.52%
EPS Next 3Y44.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.40%, RM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.03, RM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, RM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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
51.11% of the earnings are spent on dividend by RM. This is a bit on the high side, but may be sustainable.
DP51.11%
EPS Next 2Y31.52%
EPS Next 3Y44.08%
34.27
-1.06 (-3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners83.15%
Inst Owner Change4.63%
Ins Owners7.78%
Ins Owner Change-3.93%
Market Cap343.04M
Analysts80
Price Target41.31 (20.54%)
Short Float %2.68%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
Yearly Dividend1.23
Dividend Growth(5Y)N/A
DP51.11%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.64%
Min EPS beat(2)-29.73%
Max EPS beat(2)47%
EPS beat(4)3
Avg EPS beat(4)28.11%
Min EPS beat(4)-29.73%
Max EPS beat(4)73.24%
EPS beat(8)6
Avg EPS beat(8)16.79%
EPS beat(12)10
Avg EPS beat(12)17.87%
EPS beat(16)14
Avg EPS beat(16)25.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.72%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)0.16%
Revenue beat(4)2
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-3.11%
Max Revenue beat(4)0.16%
Revenue beat(8)2
Avg Revenue beat(8)-1.74%
Revenue beat(12)4
Avg Revenue beat(12)-1.16%
Revenue beat(16)8
Avg Revenue beat(16)-0.2%
PT rev (1m)2.03%
PT rev (3m)3.9%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)-0.19%
EPS NY rev (1m)-11.93%
EPS NY rev (3m)-10.87%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 6.59 | ||
| P/S | 0.6 | ||
| P/FCF | 1.34 | ||
| P/OCF | 1.26 | ||
| P/B | 0.97 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 14.76 |
EPS(TTM)4.16
EY12.14%
EPS(NY)5.2
Fwd EY15.18%
FCF(TTM)25.57
FCFY74.61%
OCF(TTM)27.17
OCFY79.28%
SpS57.48
BVpS35.26
TBVpS33.03
PEG (NY)0.33
PEG (5Y)4.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 6.73% | ||
| ROCE | 5.96% | ||
| ROIC | 4.56% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 4.67% | ||
| OM | 18.08% | ||
| PM (TTM) | 4.13% | ||
| GM | N/A | ||
| FCFM | 44.49% |
ROA(3y)2.01%
ROA(5y)2.9%
ROE(3y)11.03%
ROE(5y)14.86%
ROIC(3y)4.77%
ROIC(5y)5.82%
ROICexc(3y)4.78%
ROICexc(5y)5.85%
ROICexgc(3y)4.89%
ROICexgc(5y)5.96%
ROCE(3y)6.24%
ROCE(5y)7.61%
ROICexcg growth 3Y-8.6%
ROICexcg growth 5Y-4.56%
ROICexc growth 3Y-8.95%
ROICexc growth 5Y-4.81%
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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.94 | ||
| Debt/FCF | 5.44 | ||
| Debt/EBITDA | 11.8 | ||
| Cap/Depr | 115.21% | ||
| Cap/Sales | 2.78% | ||
| Interest Coverage | 1.56 | ||
| Cash Conversion | 230.62% | ||
| Profit Quality | 1078.15% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 0.89 |
F-Score6
WACC5.93%
ROIC/WACC0.77
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)39.6%
EPS 3Y-20.66%
EPS 5Y1.67%
EPS Q2Q%81.48%
EPS Next Y25.09%
EPS Next 2Y31.52%
EPS Next 3Y44.08%
EPS Next 5YN/A
Revenue 1Y (TTM)6.72%
Revenue growth 3Y11.16%
Revenue growth 5Y10.59%
Sales Q2Q%9.3%
Revenue Next Year6.69%
Revenue Next 2Y6.46%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y9.96%
EBIT growth 3Y0.21%
EBIT growth 5Y5.35%
EBIT Next Year-19.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y12.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.24%
OCF growth 3YN/A
OCF growth 5YN/A