WORLD ACCEPTANCE CORP (WRLD) Stock Fundamental Analysis
NASDAQ:WRLD - Nasdaq - US9814191048 - Common Stock - Currency: USD
Overall WRLD gets a fundamental rating of 5 out of 10. We evaluated WRLD against 53 industry peers in the Consumer Finance industry. WRLD has an excellent profitability rating, but there are some minor concerns on its financial health. WRLD may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year WRLD was profitable.
WRLD had a positive operating cash flow in the past year.
WRLD had positive earnings in each of the past 5 years.
WRLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WRLD has a better Return On Assets (7.25%) than 84.62% of its industry peers.
With a decent Return On Equity value of 18.81%, WRLD is doing good in the industry, outperforming 75.00% of the companies in the same industry.
WRLD has a Return On Invested Capital of 8.05%. This is amongst the best in the industry. WRLD outperforms 80.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WRLD is below the industry average of 7.30%.
The last Return On Invested Capital (8.05%) for WRLD is above the 3 year average (5.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.25% | ||
| ROE | 18.81% | ||
| ROIC | 8.05% |
ROA(3y)4.55%
ROA(5y)5.13%
ROE(3y)12.73%
ROE(5y)13.37%
ROIC(3y)5.08%
ROIC(5y)5.83%
1.3 Margins
WRLD has a Profit Margin of 14.41%. This is in the better half of the industry: WRLD outperforms 69.23% of its industry peers.
In the last couple of years the Profit Margin of WRLD has grown nicely.
Looking at the Operating Margin, with a value of 18.24%, WRLD is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
In the last couple of years the Operating Margin of WRLD has remained more or less at the same level.
WRLD's Gross Margin of 91.98% is amongst the best of the industry. WRLD outperforms 88.46% of its industry peers.
In the last couple of years the Gross Margin of WRLD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.24% | ||
| PM (TTM) | 14.41% | ||
| GM | 91.98% |
OM growth 3Y-6.98%
OM growth 5Y0.66%
PM growth 3Y-7.05%
PM growth 5Y14.58%
GM growth 3Y-1.35%
GM growth 5Y-1.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WRLD is destroying value.
WRLD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WRLD has less shares outstanding
The debt/assets ratio for WRLD has been reduced compared to a year ago.
2.2 Solvency
WRLD has an Altman-Z score of 1.63. This is a bad value and indicates that WRLD is not financially healthy and even has some risk of bankruptcy.
WRLD has a Altman-Z score of 1.63. This is in the better half of the industry: WRLD outperforms 67.31% of its industry peers.
WRLD has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as WRLD would need 2.31 years to pay back of all of its debts.
WRLD has a Debt to FCF ratio of 2.31. This is in the better half of the industry: WRLD outperforms 76.92% of its industry peers.
WRLD has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
WRLD has a Debt to Equity ratio (1.31) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for WRLD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.9
WACC8.94%
2.3 Liquidity
A Current Ratio of 0.13 indicates that WRLD may have some problems paying its short term obligations.
With a Current ratio value of 0.13, WRLD is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
WRLD has a Quick Ratio of 0.13. This is a bad value and indicates that WRLD is not financially healthy enough and could expect problems in meeting its short term obligations.
WRLD's Quick ratio of 0.13 is on the low side compared to the rest of the industry. WRLD is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.09% over the past year.
WRLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.26% yearly.
Looking at the last year, WRLD shows a decrease in Revenue. The Revenue has decreased by -2.84% in the last year.
The Revenue has been growing slightly by 1.03% on average over the past years.
EPS 1Y (TTM)24.09%
EPS 3Y-0.37%
EPS 5Y23.26%
EPS Q2Q%-13.73%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y2.94%
Revenue growth 5Y1.03%
Sales Q2Q%0.64%
3.2 Future
WRLD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.90% yearly.
Based on estimates for the next years, WRLD will show a small growth in Revenue. The Revenue will grow by 0.41% on average per year.
EPS Next Y7.69%
EPS Next 2Y6.45%
EPS Next 3Y8.9%
EPS Next 5YN/A
Revenue Next Year-4.44%
Revenue Next 2Y-0.46%
Revenue Next 3Y0.41%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 9.77, the valuation of WRLD can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of WRLD indicates a somewhat cheap valuation: WRLD is cheaper than 67.31% of the companies listed in the same industry.
WRLD is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.31 indicates a reasonable valuation of WRLD.
65.38% of the companies in the same industry are more expensive than WRLD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. WRLD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WRLD indicates a somewhat cheap valuation: WRLD is cheaper than 71.15% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WRLD is valued a bit cheaper than 67.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.32 | ||
| EV/EBITDA | 12.25 |
4.3 Compensation for Growth
WRLD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WRLD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.27
PEG (5Y)0.42
EPS Next 2Y6.45%
EPS Next 3Y8.9%
5. Dividend
5.1 Amount
WRLD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
139.94
-4.83 (-3.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners82.34%
Inst Owner Change-1.91%
Ins Owners8.63%
Ins Owner Change3.44%
Market Cap804.65M
Analysts45.71
Price Target146.37 (4.59%)
Short Float %6.57%
Short Ratio13.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)59.72%
Min EPS beat(2)22.86%
Max EPS beat(2)96.57%
EPS beat(4)4
Avg EPS beat(4)40.17%
Min EPS beat(4)3.84%
Max EPS beat(4)96.57%
EPS beat(8)8
Avg EPS beat(8)72.16%
EPS beat(12)9
Avg EPS beat(12)-95.48%
EPS beat(16)11
Avg EPS beat(16)-72.14%
Revenue beat(2)1
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-7.66%
Max Revenue beat(2)3.13%
Revenue beat(4)2
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-9.94%
Max Revenue beat(4)4.55%
Revenue beat(8)5
Avg Revenue beat(8)0.12%
Revenue beat(12)6
Avg Revenue beat(12)-0.74%
Revenue beat(16)7
Avg Revenue beat(16)-0.8%
PT rev (1m)-4.92%
PT rev (3m)-12.78%
EPS NQ rev (1m)-5.36%
EPS NQ rev (3m)-15.87%
EPS NY rev (1m)6.87%
EPS NY rev (3m)6.87%
Revenue NQ rev (1m)-3.19%
Revenue NQ rev (3m)-4.62%
Revenue NY rev (1m)-3.39%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 9.31 | ||
| P/S | 1.44 | ||
| P/FCF | 3.32 | ||
| P/OCF | 3.26 | ||
| P/B | 1.88 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 12.25 |
EPS(TTM)14.32
EY10.23%
EPS(NY)15.02
Fwd EY10.74%
FCF(TTM)42.21
FCFY30.16%
OCF(TTM)42.96
OCFY30.7%
SpS97.19
BVpS74.46
TBVpS71.74
PEG (NY)1.27
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.25% | ||
| ROE | 18.81% | ||
| ROCE | 10.32% | ||
| ROIC | 8.05% | ||
| ROICexc | 8.18% | ||
| ROICexgc | 6.21% | ||
| OM | 18.24% | ||
| PM (TTM) | 14.41% | ||
| GM | 91.98% | ||
| FCFM | 43.43% |
ROA(3y)4.55%
ROA(5y)5.13%
ROE(3y)12.73%
ROE(5y)13.37%
ROIC(3y)5.08%
ROIC(5y)5.83%
ROICexc(3y)5.16%
ROICexc(5y)5.92%
ROICexgc(3y)3.95%
ROICexgc(5y)4.58%
ROCE(3y)6.52%
ROCE(5y)7.47%
ROICexcg growth 3Y-8.91%
ROICexcg growth 5Y-0.66%
ROICexc growth 3Y-8.44%
ROICexc growth 5Y-0.99%
OM growth 3Y-6.98%
OM growth 5Y0.66%
PM growth 3Y-7.05%
PM growth 5Y14.58%
GM growth 3Y-1.35%
GM growth 5Y-1.14%
F-Score8
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 4.98 | ||
| Cap/Depr | 41.33% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 2.31 | ||
| Cash Conversion | 219.76% | ||
| Profit Quality | 301.39% | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 1.63 |
F-Score8
WACC8.94%
ROIC/WACC0.9
Cap/Depr(3y)54.22%
Cap/Depr(5y)103.09%
Cap/Sales(3y)1.01%
Cap/Sales(5y)2.09%
Profit Quality(3y)726.05%
Profit Quality(5y)662.24%
High Growth Momentum
Growth
EPS 1Y (TTM)24.09%
EPS 3Y-0.37%
EPS 5Y23.26%
EPS Q2Q%-13.73%
EPS Next Y7.69%
EPS Next 2Y6.45%
EPS Next 3Y8.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y2.94%
Revenue growth 5Y1.03%
Sales Q2Q%0.64%
Revenue Next Year-4.44%
Revenue Next 2Y-0.46%
Revenue Next 3Y0.41%
Revenue Next 5YN/A
EBIT growth 1Y18.23%
EBIT growth 3Y-4.24%
EBIT growth 5Y1.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-20.38%
FCF growth 3Y8.92%
FCF growth 5Y2.95%
OCF growth 1Y-20.55%
OCF growth 3Y6.94%
OCF growth 5Y1.67%