REGIONAL MANAGEMENT CORP (RM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RM - US75902K1060 - Common Stock
37.85 USD
-1.24 (-3.17%)
37.85 USD
0 (0%)
Taking everything into account, RM scores 4 out of 10 in our fundamental rating. RM was compared to 53 industry peers in the Consumer Finance industry. Both the profitability and financial health of RM have multiple concerns. 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
With a Return On Assets value of 2.04%, RM perfoms like the industry average, outperforming 49.06% of the companies in the same industry.
RM's Return On Equity of 11.14% is in line compared to the rest of the industry. RM outperforms 45.28% of its industry peers.
The Return On Invested Capital of RM (5.36%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RM 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
RM's Profit Margin of 6.57% is on the low side compared to the rest of the industry. RM is outperformed by 66.04% of its industry peers.
RM's Profit Margin has declined in the last couple of years.
RM has a better Operating Margin (21.62%) than 73.58% of its industry peers.
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.
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
Based on the Altman-Z score of 0.90, we must say that RM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.90, RM is in line with its industry, outperforming 58.49% of the companies in the same industry.
The Debt to FCF ratio of RM is 5.70, which is a neutral value as it means it would take RM, 5.70 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.70, RM is doing good in the industry, outperforming 73.58% of the companies in the same industry.
A Debt/Equity ratio of 4.23 is on the high side and indicates that RM has dependencies on debt financing.
RM has a Debt to Equity ratio of 4.23. This is in the lower half of the industry: RM underperforms 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.87
WACC6.16%
2.3 Liquidity
A Current Ratio of 0.05 indicates that RM may have some problems paying its short term obligations.
RM's Current ratio of 0.05 is on the low side compared to the rest of the industry. RM is outperformed by 77.36% of its industry peers.
A Quick Ratio of 0.05 indicates that RM may have some problems paying its short term obligations.
RM's Quick ratio of 0.05 is on the low side compared to the rest of the industry. RM is outperformed by 77.36% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 1.67% on average over the past years.
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
RM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.86% yearly.
The Revenue is expected to grow by 7.99% on average over the next years.
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
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
Based on the Price/Earnings ratio of 9.16, the valuation of RM can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RM indicates a somewhat cheap valuation: RM is cheaper than 64.15% of the companies listed in the same industry.
RM is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.00 indicates a rather cheap valuation of RM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RM indicates a rather cheap valuation: RM is cheaper than 81.13% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. RM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.16 | ||
| Fwd PE | 6 |
4.2 Price Multiples
RM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RM is cheaper than 60.38% of the companies in the same industry.
90.57% 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 | 1.33 | ||
| EV/EBITDA | 12.86 |
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.
RM's earnings are expected to grow with 26.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)5.5
EPS Next 2Y23.15%
EPS Next 3Y26.86%
5. Dividend
5.1 Amount
RM has a Yearly Dividend Yield of 3.08%.
RM's Dividend Yield is a higher than the industry average which is at 2.60.
Compared to an average S&P500 Dividend Yield of 1.92, RM pays a better dividend.
| 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
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%
37.85
-1.24 (-3.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners82.25%
Inst Owner Change0.04%
Ins Owners8.06%
Ins Owner Change-4.84%
Market Cap367.52M
Revenue(TTM)630.73M
Net Income(TTM)41.42M
Analysts81.54
Price Target47.26 (24.86%)
Short Float %3.18%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend1.23
Dividend Growth(5Y)N/A
DP28.16%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)0%
PT rev (3m)12.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.16 | ||
| Fwd PE | 6 | ||
| P/S | 0.58 | ||
| P/FCF | 1.33 | ||
| P/OCF | 1.25 | ||
| P/B | 0.99 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 12.86 |
EPS(TTM)4.13
EY10.91%
EPS(NY)6.31
Fwd EY16.67%
FCF(TTM)28.43
FCFY75.11%
OCF(TTM)30.16
OCFY79.68%
SpS64.96
BVpS38.3
TBVpS35.17
PEG (NY)0.97
PEG (5Y)5.5
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
WACC6.16%
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)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.
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%.