World Acceptance Corporation Fundamental Analysis
World Acceptance Corporation Fundamental Analysis
World Acceptance Corporation (WRLD) shows weak financial fundamentals with a PE ratio of 29.50, profit margin of 5.91%, and ROE of 9.25%. The company generates $0.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.1/100 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
ModerateWRLD shows balanced valuation metrics.
Growth Score
ModerateWRLD shows steady but slowing expansion.
Financial Health Score
WeakWRLD carries high financial risk with limited liquidity.
Profitability Score
WeakWRLD struggles to sustain strong margins.
Key Financial Metrics
Is WRLD Expensive or Cheap?
P/E Ratio
WRLD trades at 29.50 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WRLD's PEG of -0.54 indicates potential undervaluation.
Price to Book
The market values World Acceptance Corporation at 3.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.95 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 $5.91 as profit after all expenses.
Operating Margin
Core operations generate 7.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.25 in profit for every $100 of shareholder equity.
ROA
World Acceptance Corporation generates $3.28 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 $253.64M, reflecting robust business health.
Free Cash Flow
World Acceptance Corporation generates strong free cash flow of $249.84M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $53.84 in free cash annually.
FCF Yield
WRLD converts 24.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.006
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How WRLD Stacks Against Its Sector Peers
| Metric | WRLD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.50 | 21.02 | Worse (Expensive) |
| ROE | 9.25% | 634.00% | Weak |
| Net Margin | 5.91% | -1049.00% (disorted) | Weak |
| Debt/Equity | 1.88 | 1.52 | Weak (High Leverage) |
| Current Ratio | 0.77 | 924.95 | Weak Liquidity |
| ROA | 3.28% | -836.00% (disorted) | Weak |
WRLD outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
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
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical