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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WRLD had positive earnings in the past year.
WRLD had a positive operating cash flow in the past year.
Each year in the past 5 years WRLD has been profitable.
Each year in the past 5 years WRLD had a positive operating cash flow.
1.2 Ratios
WRLD has a Return On Assets of 7.25%. This is amongst the best in the industry. WRLD outperforms 84.91% of its industry peers.
Looking at the Return On Equity, with a value of 18.81%, WRLD is in the better half of the industry, outperforming 73.58% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.05%, WRLD is doing good in the industry, outperforming 77.36% of the companies in the same industry.
WRLD had an Average Return On Invested Capital over the past 3 years of 5.08%. This is below the industry average of 8.61%.
The 3 year average ROIC (5.08%) for WRLD is below the current ROIC(8.05%), indicating increased profibility in the last year.
| 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's Profit Margin of 14.41% is fine compared to the rest of the industry. WRLD outperforms 60.38% of its industry peers.
WRLD's Profit Margin has improved in the last couple of years.
WRLD's Operating Margin of 18.24% is fine compared to the rest of the industry. WRLD outperforms 67.92% of its industry peers.
WRLD's Operating Margin has been stable in the last couple of years.
The Gross Margin of WRLD (91.98%) is better than 88.68% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WRLD is destroying value.
The number of shares outstanding for WRLD has been reduced compared to 1 year ago.
Compared to 5 years ago, WRLD has less shares outstanding
Compared to 1 year ago, WRLD has an improved debt to assets ratio.
2.2 Solvency
WRLD has an Altman-Z score of 1.53. 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 1.53. This is in the better half of the industry: WRLD outperforms 66.04% of its industry peers.
The Debt to FCF ratio of WRLD is 2.31, which is a good value as it means it would take WRLD, 2.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.31, WRLD belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that WRLD has dependencies on debt financing.
WRLD has a Debt to Equity ratio (1.31) which is comparable to the rest of the industry.
Although WRLD does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.92
WACC8.76%
2.3 Liquidity
WRLD has a Current 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.
The Current ratio of WRLD (0.13) is worse than 75.47% of its industry peers.
A Quick Ratio of 0.13 indicates that WRLD may have some problems paying its short term obligations.
WRLD has a worse Quick ratio (0.13) than 75.47% 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.
Measured over the past years, WRLD shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.26% on average per year.
WRLD shows a decrease in Revenue. In the last year, the revenue decreased by -2.84%.
Measured over the past years, WRLD shows a small growth in Revenue. The Revenue has been growing by 1.03% on average per year.
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
Based on estimates for the next years, WRLD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.95% on average per year.
WRLD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.41% yearly.
EPS Next Y7.73%
EPS Next 2Y6.48%
EPS Next 3Y8.95%
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.
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 8.52, the valuation of WRLD can be described as reasonable.
WRLD's Price/Earnings ratio is a bit cheaper when compared to the industry. WRLD is cheaper than 64.15% of the companies in the same industry.
WRLD is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.11, the valuation of WRLD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WRLD is valued a bit cheaper than the industry average as 64.15% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WRLD to the average of the S&P500 Index (21.32), we can say WRLD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.52 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
77.36% of the companies in the same industry are more expensive than WRLD, based on the Enterprise Value to EBITDA ratio.
69.81% of the companies in the same industry are more expensive than WRLD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.89 | ||
| EV/EBITDA | 11.23 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.1
PEG (5Y)0.37
EPS Next 2Y6.48%
EPS Next 3Y8.95%
5. Dividend
5.1 Amount
WRLD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:WRLD (4/21/2025, 2:22:06 PM)
122
-2.86 (-2.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners82.34%
Inst Owner Change0.97%
Ins Owners8.63%
Ins Owner Change5.39%
Market Cap701.50M
Analysts45.71
Price Target146.37 (19.98%)
Short Float %6%
Short Ratio13.23
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)0%
PT rev (3m)17.62%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-5.28%
EPS NY rev (1m)0.04%
EPS NY rev (3m)6.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.52 | ||
| Fwd PE | 8.11 | ||
| P/S | 1.26 | ||
| P/FCF | 2.89 | ||
| P/OCF | 2.84 | ||
| P/B | 1.64 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 11.23 |
EPS(TTM)14.32
EY11.74%
EPS(NY)15.03
Fwd EY12.32%
FCF(TTM)42.21
FCFY34.6%
OCF(TTM)42.96
OCFY35.21%
SpS97.19
BVpS74.46
TBVpS71.74
PEG (NY)1.1
PEG (5Y)0.37
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 | 1.53 |
F-Score8
WACC8.76%
ROIC/WACC0.92
Cap/Depr(3y)54.23%
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 Y7.73%
EPS Next 2Y6.48%
EPS Next 3Y8.95%
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%