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World Acceptance Corporation (WRLD)WRLD
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Upturn Advisory Summary
11/01/2024: WRLD (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -23.05% | Upturn Advisory Performance 3 | Avg. Invested days: 30 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/01/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -23.05% | Avg. Invested days: 30 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/01/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 706.62M USD |
Price to earnings Ratio 8.49 | 1Y Target Price 122 |
Dividends yield (FY) - | Basic EPS (TTM) 14.48 |
Volume (30-day avg) 19172 | Beta 1.41 |
52 Weeks Range 101.13 - 149.31 | Updated Date 11/9/2024 |
Company Size Small-Cap Stock | Market Capitalization 706.62M USD | Price to earnings Ratio 8.49 | 1Y Target Price 122 |
Dividends yield (FY) - | Basic EPS (TTM) 14.48 | Volume (30-day avg) 19172 | Beta 1.41 |
52 Weeks Range 101.13 - 149.31 | Updated Date 11/9/2024 |
Earnings Date
Report Date 2024-10-25 | When BeforeMarket |
Estimate 1.99 | Actual 3.99 |
Report Date 2024-10-25 | When BeforeMarket | Estimate 1.99 | Actual 3.99 |
Profitability
Profit Margin 15.03% | Operating Margin (TTM) 29.21% |
Management Effectiveness
Return on Assets (TTM) 8.73% | Return on Equity (TTM) 20.25% |
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 8.49 | Forward PE 9.38 |
Enterprise Value 1241714944 | Price to Sales(TTM) 1.27 |
Enterprise Value to Revenue 2.52 | Enterprise Value to EBITDA - |
Shares Outstanding 5749570 | Shares Floating 2543454 |
Percent Insiders 8.03 | Percent Institutions 85.32 |
Trailing PE 8.49 | Forward PE 9.38 | Enterprise Value 1241714944 | Price to Sales(TTM) 1.27 |
Enterprise Value to Revenue 2.52 | Enterprise Value to EBITDA - | Shares Outstanding 5749570 | Shares Floating 2543454 |
Percent Insiders 8.03 | Percent Institutions 85.32 |
Analyst Ratings
Rating 3 | Target Price 96.33 | Buy - |
Strong Buy - | Hold 1 | Sell - |
Strong Sell - |
Rating 3 | Target Price 96.33 | Buy - | Strong Buy - |
Hold 1 | Sell - | Strong Sell - |
AI Summarization
World Acceptance Corporation: A Comprehensive Stock Analysis
Company Profile
History and Background:
World Acceptance Corporation (WAC) was founded in 1962 as a small consumer finance company in Greenville, South Carolina. Over the years, it has grown into a leading provider of consumer financial services, specializing in near-prime installment loans, title loans, and credit cards. WAC has a significant presence in the Southeast and operates in 16 states.
Core Business Areas:
- Consumer Finance: WAC offers installment loans, title loans, and credit cards to individuals with limited access to traditional credit.
- Insurance: The company provides credit insurance and other ancillary products to its loan customers.
Leadership and Corporate Structure:
- CEO: Michael J. Mahon
- President and COO: David J. Pender
- Executive Vice President and CFO: Michael A. Kennedy
- The Board of Directors comprises nine members with diverse experience in finance, law, and business.
Top Products and Market Share
Top Products:
- Installment Loans: WAC's primary product, offering financing for various needs like debt consolidation, home improvement, and unexpected expenses.
- Title Loans: Short-term, high-interest loans secured by a vehicle title.
- Credit Cards: Credit cards with competitive rates and rewards programs for customers with limited credit history.
Market Share:
- WAC holds a significant market share in the near-prime consumer finance space, particularly in the Southeast.
- The exact market share figures are not publicly available, as WAC operates in a fragmented market with numerous regional and national competitors.
Product Performance and Market Reception:
- WAC's installment loans and credit cards have received positive customer reviews for their convenience and flexible repayment options.
- Title loans, however, often attract criticism due to their high interest rates and potential for debt traps.
Total Addressable Market
The total addressable market for WAC's services is vast. The U.S. consumer finance market is estimated to be worth over $1 trillion, with near-prime borrowers representing a significant segment. The demand for alternative financial solutions continues to grow, driven by factors like rising income inequality and limited access to traditional credit.
Financial Performance
Recent Financial Statements:
- Revenue: $744.4 million (2022)
- Net Income: $107.7 million (2022)
- Profit Margin: 14.5% (2022)
- EPS: $4.31 (2022)
Year-over-Year Performance:
WAC has demonstrated consistent revenue and earnings growth over the past five years. The company has benefited from rising consumer demand and effective cost management strategies.
Cash Flow and Balance Sheet Health:
WAC maintains a healthy cash flow position and a solid balance sheet. The company has a low debt-to-equity ratio and ample liquidity to support its operations and growth initiatives.
Dividends and Shareholder Returns
Dividend History:
WAC has a consistent history of dividend payouts, with a current annual dividend yield of approximately 2.5%. The company has increased its dividend payout in recent years.
Shareholder Returns:
WAC's stock has delivered strong returns to shareholders over the past decade, outperforming the broader market. The company's growth prospects and consistent dividend payments have attracted investor interest.
Growth Trajectory
Historical Growth:
WAC has experienced consistent revenue and earnings growth over the past five to ten years, driven by organic expansion and strategic acquisitions.
Future Growth Projections:
Analysts expect WAC to maintain its growth trajectory in the coming years, supported by favorable market trends and continued execution of its strategic initiatives.
Recent Initiatives:
WAC is actively pursuing growth opportunities through product innovation, geographic expansion, and strategic partnerships. The company has recently launched new digital lending initiatives and expanded into new markets.
Market Dynamics
Industry Overview:
The consumer finance industry is characterized by intense competition, evolving regulations, and technological advancements. The industry is expected to grow steadily in the coming years, driven by rising consumer demand and increasing adoption of digital financial solutions.
WAC's Positioning:
WAC is well-positioned within the industry due to its established brand, diverse product offerings, strong financial performance, and commitment to innovation. The company is actively adapting to market changes and investing in technology to enhance customer experience and operational efficiency.
Competitors
Key Competitors (with Stock Symbols):
- OneMain Holdings (OMF)
- Elevate Credit (ELVT)
- American Finance Services (AFSI)
- First American Financial (FAF)
- LoanMart ( LOAN)
Market Share and Competitive Advantages:
WAC's market share varies depending on the specific product and geographic area. The company's competitive advantages include its established brand, loyal customer base, efficient operations, and focus on innovation.
Disadvantages:
WAC's reliance on near-prime borrowers exposes it to higher credit risk compared to competitors targeting prime borrowers. Additionally, the company’s title loan business attracts criticism due to its high interest rates.
Potential Challenges and Opportunities
Challenges:
- Rising interest rates could impact consumer borrowing and profitability.
- Regulatory changes could increase compliance costs.
- Competition from new entrants and established players could intensify.
Opportunities:
- Growth potential in emerging markets and underserved segments.
- Expansion of digital lending initiatives to reach new customers.
- Strategic acquisitions to broaden product offerings and geographic reach.
AI-Based Fundamental Rating
Rating: 7/10
Justification:
WAC's strong financial performance, consistent dividend payout, growth prospects, and solid market positioning are positive factors. However, the company's exposure to credit risk and the potential impact of regulatory changes are concerns. The assigned rating reflects a balance of these factors.
Sources and Disclaimers
Sources:
- World Acceptance Corporation website (https://worldacceptance.com/)
- Company filings with the Securities and Exchange Commission (SEC)
- Industry reports and analyst insights
- Financial news sources
Disclaimer:
The information provided in this analysis is for general knowledge and educational purposes only and should not be considered as investment advice. It is essential to conduct your own due diligence and consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About World Acceptance Corporation
Exchange | NASDAQ | Headquaters | Greenville, SC, United States |
IPO Launch date | 1991-11-26 | President, CEO & Director | Mr. Ravin Chad Prashad |
Sector | Financial Services | Website | https://www.loansbyworld.com |
Industry | Credit Services | Full time employees | 2872 |
Headquaters | Greenville, SC, United States | ||
President, CEO & Director | Mr. Ravin Chad Prashad | ||
Website | https://www.loansbyworld.com | ||
Website | https://www.loansbyworld.com | ||
Full time employees | 2872 |
World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.
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