World Acceptance Corporation Fundamental Analysis (NASDAQ: WRLD)
World Acceptance Corporation Fundamental Analysis (NASDAQ: WRLD)
World Acceptance Corporation (NASDAQ: WRLD) shows weak financial fundamentals with a PE ratio of 21.80, profit margin of 6.65%, and ROE of 11.00%. The company generates $0.6B in annual revenue with weak year-over-year growth of -1.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WRLD's fundamental strength across five key dimensions:
Efficiency Score
WeakWRLD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWRLD trades at attractive valuation levels.
Growth Score
ModerateWRLD shows steady but slowing expansion.
Financial Health Score
ModerateWRLD shows balanced financial health with some risks.
Profitability Score
WeakWRLD struggles to sustain strong margins.
Key Financial Metrics
Is WRLD Expensive or Cheap?
P/E Ratio
WRLD trades at 21.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WRLD's PEG of -0.51 indicates potential undervaluation.
Price to Book
The market values World Acceptance Corporation at 2.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.15 times EBITDA. This is generally considered low.
How Well Does WRLD Make Money?
Net Profit Margin
For every $100 in sales, World Acceptance Corporation keeps $6.65 as profit after all expenses.
Operating Margin
Core operations generate 17.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.00 in profit for every $100 of shareholder equity.
ROA
World Acceptance Corporation generates $3.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
World Acceptance Corporation generates strong operating cash flow of $65.69B, reflecting robust business health.
Free Cash Flow
World Acceptance Corporation generates strong free cash flow of $64.39B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $13816.43 in free cash annually.
FCF Yield
WRLD converts 70.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
242.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How WRLD Stacks Against Its Sector Peers
| Metric | WRLD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.80 | 21.17 | Neutral |
| ROE | 11.00% | 668.00% | Weak |
| Net Margin | 6.65% | 876.00% | Weak |
| Debt/Equity | 1.79 | 0.79 | Weak (High Leverage) |
| Current Ratio | 242.80 | 905.28 | Strong Liquidity |
| ROA | 3.65% | 4787782.00% | Weak |
WRLD outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews World Acceptance Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.64%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
344.93%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
26.28%
Industry Style: Value, Dividend, Cyclical
High Growth