Regional Management Corp.
Regional Management Corp. Fundamental Analysis
Regional Management Corp. (RM) shows moderate financial fundamentals with a PE ratio of 7.75, profit margin of 6.88%, and ROE of 12.12%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 6.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RM's fundamental strength across five key dimensions:
Efficiency Score
WeakRM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRM trades at attractive valuation levels.
Growth Score
ModerateRM shows steady but slowing expansion.
Financial Health Score
ModerateRM shows balanced financial health with some risks.
Profitability Score
WeakRM struggles to sustain strong margins.
Key Financial Metrics
Is RM Expensive or Cheap?
P/E Ratio
RM trades at 7.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RM's PEG of 1.20 indicates fair valuation.
Price to Book
The market values Regional Management Corp. at 0.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -14.11 times EBITDA. This is generally considered low.
How Well Does RM Make Money?
Net Profit Margin
For every $100 in sales, Regional Management Corp. keeps $6.88 as profit after all expenses.
Operating Margin
Core operations generate 12.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.12 in profit for every $100 of shareholder equity.
ROA
Regional Management Corp. generates $2.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Regional Management Corp. generates strong operating cash flow of $224.00M, reflecting robust business health.
Free Cash Flow
Regional Management Corp. generates strong free cash flow of $214.77M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $22.11 in free cash annually.
FCF Yield
RM converts 65.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
49.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How RM Stacks Against Its Sector Peers
| Metric | RM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.75 | 18.86 | Better (Cheaper) |
| ROE | 12.12% | 847.00% | Weak |
| Net Margin | 6.88% | 4202.00% | Weak |
| Debt/Equity | 4.65 | 0.91 | Weak (High Leverage) |
| Current Ratio | 49.92 | 667.17 | Strong Liquidity |
| ROA | 2.11% | -21543.00% (disorted) | Weak |
RM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Regional Management Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
120.54%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
9.00%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
92.69%
Industry Style: Value, Dividend, Cyclical
High Growth