REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RM - US75902K1060 - Common Stock
36.91 USD
-1.46 (-3.81%)
36.91 USD
0 (0%)
Overall RM gets a fundamental rating of 5 out of 10. We evaluated RM 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- 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 of 2.04%. This is comparable to the rest of the industry: RM outperforms 48.15% of its industry peers.
- RM has a Return On Equity of 11.14%. This is comparable to the rest of the industry: RM outperforms 46.30% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.36%, RM is in line with its industry, outperforming 59.26% of the companies in the same industry.
- RM had an Average Return On Invested Capital over the past 3 years of 5.39%. This 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
- Looking at the Profit Margin, with a value of 6.57%, RM is doing worse than 66.67% of the companies in the same industry.
- 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 74.07% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RM is destroying value.
- RM has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RM has less shares outstanding
- RM has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.89, we must say that RM is in the distress zone and has some risk of bankruptcy.
- RM has a better Altman-Z score (0.89) than 61.11% 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.
- With a decent Debt to FCF ratio value of 5.70, RM is doing good in the industry, outperforming 74.07% of the companies in the same industry.
- RM has a Debt/Equity ratio of 4.23. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of RM (4.23) is worse than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.88
WACC6.12%
2.3 Liquidity
- A Current Ratio of 0.05 indicates that RM may have some problems paying its short term obligations.
- RM has a Current ratio of 0.05. This is in the lower half of the industry: RM underperforms 77.78% of its industry peers.
- A Quick Ratio of 0.05 indicates that RM may have some problems paying its short term obligations.
- With a Quick ratio value of 0.05, RM is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
- RM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.02%, which is quite good.
- 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 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.
- 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 8.94.
- 61.11% of the companies in the same industry are more expensive than RM, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, RM is valued rather cheaply.
- With a Price/Forward Earnings ratio of 5.85, 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 81.48% of the companies in the same industry.
- RM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 5.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RM is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, RM is valued cheaper than 90.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.3 | ||
| EV/EBITDA | 12.72 |
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 26.86% in the coming years.
PEG (NY)0.94
PEG (5Y)5.36
EPS Next 2Y23.15%
EPS Next 3Y26.86%
5. Dividend
5.1 Amount
- RM has a Yearly Dividend Yield of 3.13%.
- Compared to an average industry Dividend Yield of 2.63, RM pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, RM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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%
REGIONAL MANAGEMENT CORP / RM FAQ
Can you provide the ChartMill fundamental rating for REGIONAL MANAGEMENT CORP?
ChartMill assigns a fundamental rating of 5 / 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%.