NasdaqGS:WRLD

Stock Analysis Report

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Executive Summary

World Acceptance Corporation, together with its subsidiaries, engages in small-loan consumer finance business. More Details


Snowflake Analysis

Excellent balance sheet with poor track record.


Similar Companies

Share Price & News

How has World Acceptance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WRLD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: WRLD's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

13.9%

WRLD

2.0%

US Consumer Finance

-0.9%

US Market


1 Year Return

54.0%

WRLD

2.7%

US Consumer Finance

19.6%

US Market

Return vs Industry: WRLD exceeded the US Consumer Finance industry which returned 4.5% over the past year.

Return vs Market: WRLD exceeded the US Market which returned 21% over the past year.


Shareholder returns

WRLDIndustryMarket
7 Day13.9%2.0%-0.9%
30 Day39.6%9.4%3.0%
90 Day31.1%26.0%11.5%
1 Year54.0%54.0%5.2%2.7%22.3%19.6%
3 Year65.1%65.1%19.4%13.0%45.3%35.7%
5 Year273.4%273.4%110.6%92.8%124.8%99.9%

Long-Term Price Volatility Vs. Market

How volatile is World Acceptance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is World Acceptance undervalued compared to its fair value and its price relative to the market?

21.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WRLD ($141.05) is trading above our estimate of fair value ($81.89)

Significantly Below Fair Value: WRLD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WRLD is poor value based on its PE Ratio (21.5x) compared to the US Consumer Finance industry average (12.6x).

PE vs Market: WRLD is poor value based on its PE Ratio (21.5x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: WRLD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WRLD is overvalued based on its PB Ratio (2.4x) compared to the US Consumer Finance industry average (1.4x).


Next Steps

Future Growth

How is World Acceptance forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRLD's earnings are forecast to decline over the next 3 years (-7.5% per year).

Earnings vs Market: WRLD's earnings are forecast to decline over the next 3 years (-7.5% per year).

High Growth Earnings: WRLD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WRLD's revenue (3.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: WRLD's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WRLD's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has World Acceptance performed over the past 5 years?

-17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRLD has high quality earnings.

Growing Profit Margin: WRLD's current net profit margins (8.2%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: WRLD's earnings have declined by 17.5% per year over the past 5 years.

Accelerating Growth: WRLD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WRLD had negative earnings growth (-16.8%) over the past year, making it difficult to compare to the Consumer Finance industry average (-19.3%).


Return on Equity

High ROE: WRLD's Return on Equity (12.5%) is considered low.


Next Steps

Financial Health

How is World Acceptance's financial position?


Financial Position Analysis

Short Term Liabilities: WRLD's short term assets ($725.2M) exceed its short term liabilities ($57.2M).

Long Term Liabilities: WRLD's short term assets ($725.2M) exceed its long term liabilities ($507.8M).


Debt to Equity History and Analysis

Debt Level: WRLD's debt to equity ratio (115.7%) is considered high.

Reducing Debt: WRLD's debt to equity ratio has reduced from 141.2% to 115.7% over the past 5 years.

Debt Coverage: WRLD's debt is well covered by operating cash flow (51.6%).

Interest Coverage: WRLD's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

What is World Acceptance current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WRLD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WRLD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WRLD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WRLD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WRLD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Ravin Prashad (38 yo)

2.58yrs

Tenure

US$932,182

Compensation

Mr. Ravin Chad Prashad has been President and Chief Executive Officer of World Acceptance Corporation since June 27, 2018, served as its Senior Vice President and Chief Strategy & Analytics Officer since F...


CEO Compensation Analysis

Compensation vs Market: Ravin's total compensation ($USD932.18K) is below average for companies of similar size in the US market ($USD2.38M).

Compensation vs Earnings: Ravin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ravin Prashad
President2.58yrsUS$932.18k2.64%
$ 23.2m
John Calmes
Executive VP7.08yrsUS$549.50k0.82%
$ 7.1m
Luke Umstetter
Senior VP2.42yrsUS$370.83k0.41%
$ 3.6m
Alice Caulder
Senior Vice President of Human Resourcesno dataUS$327.97k0.26%
$ 2.3m
Daniel Dyer
Executive VP & Chief Branch Operations Officer15.58yrsUS$541.58k0.73%
$ 6.4m
Scott McIntyre
Senior Vice President of Accounting2.25yrsno data0.26%
$ 2.3m
Victoria Hammond
Vice President of Marketingno datano datano data
Jeff Tinney
Senior Vice President of Western Division13.5yrsUS$4.31m0.85%
$ 7.5m
Ricardo Cavazos Saldana
Senior Vice President of Mexico Operations4.58yrsno datano data
Jackie Willyard
Senior Vice President of South Eastern Division4.33yrsUS$4.24m0.65%
$ 5.7m
Jason Childers
Senior Vice President of Information Technology2.25yrsUS$4.21m0.24%
$ 2.1m
Chris Simonetti
Senior Vice President of Strategy & Analytics1.83yrsno datano data

3.5yrs

Average Tenure

44.5yo

Average Age

Experienced Management: WRLD's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ravin Prashad
President2.58yrsUS$932.18k2.64%
$ 23.2m
Charles Walters
Chairman Emeritusno dataUS$19.37kno data
Charles Way
Independent Director29.33yrsUS$55.00k0.25%
$ 2.2m
Ken Bramlett
Independent Chairman of the Board5.33yrsUS$50.00k0.65%
$ 5.7m
Scott Vassalluzzo
Independent Director9.42yrsUS$40.00k0.51%
$ 4.5m
Darrell Whitaker
Independent Director12.67yrsUS$40.00k0.15%
$ 1.3m

9.4yrs

Average Tenure

61yo

Average Age

Experienced Board: WRLD's board of directors are considered experienced (9.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WRLD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

World Acceptance Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: World Acceptance Corporation
  • Ticker: WRLD
  • Exchange: NasdaqGS
  • Founded: 1962
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$876.488m
  • Shares outstanding: 6.21m
  • Website: https://www.loansbyworld.com

Number of Employees


Location

  • World Acceptance Corporation
  • 104 S. Main Street
  • Greenville
  • South Carolina
  • 29601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WRLDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1991
WOADB (Deutsche Boerse AG)YesCommon StockDEEURNov 1991

Biography

World Acceptance Corporation, together with its subsidiaries, engages in small-loan consumer finance business. The company offers short-term small installment loans, medium-term larger installment loans, r...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 00:53
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.