NYSE:RM

Stock Analysis Report

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Executive Summary

Regional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders.


Snowflake Analysis

Undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has Regional Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.9%

RM

7.5%

US Consumer Finance

1.2%

US Market


1 Year Return

-33.7%

RM

-20.8%

US Consumer Finance

16.8%

US Market

Return vs Industry: RM underperformed the US Consumer Finance industry which returned -23.3% over the past year.

Return vs Market: RM underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

RMIndustryMarket
7 Day15.9%7.5%1.2%
30 Day16.6%9.5%4.9%
90 Day50.3%30.0%20.0%
1 Year-33.7%-33.7%-19.0%-20.8%19.3%16.8%
3 Year-20.6%-20.6%8.5%2.9%43.7%34.4%
5 Year7.2%7.2%12.4%3.2%75.5%56.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Regional Management undervalued compared to its fair value and its price relative to the market?

20.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RM ($18.19) is trading below our estimate of fair value ($22.9)

Significantly Below Fair Value: RM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RM's PE Ratio (6.8x) is in line with the US Consumer Finance industry average.

PE vs Market: RM is good value based on its PE Ratio (6.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RM is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: RM is good value based on its PB Ratio (0.8x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is Regional Management forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RM's forecast earnings growth (37% per year) is above the savings rate (2.2%).

Earnings vs Market: RM's earnings (37% per year) are forecast to grow faster than the US market (23.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RM's revenue (7.3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: RM's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RM's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Regional Management performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RM has a large one-off loss of $33.4M impacting its June 30 2020 financial results.

Growing Profit Margin: RM's current net profit margins (8%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: RM's earnings have grown by 12.9% per year over the past 5 years.

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

Earnings vs Industry: RM had negative earnings growth (-15.4%) over the past year, making it difficult to compare to the Consumer Finance industry average (-38.6%).


Return on Equity

High ROE: RM's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is Regional Management's financial position?


Financial Position Analysis

Short Term Liabilities: RM's short term assets ($917.0M) exceed its short term liabilities ($34.8M).

Long Term Liabilities: RM's short term assets ($917.0M) exceed its long term liabilities ($705.5M).


Debt to Equity History and Analysis

Debt Level: RM's debt to equity ratio (257.5%) is considered high.

Reducing Debt: RM's debt to equity ratio has increased from 188.5% to 257.5% over the past 5 years.

Debt Coverage: RM's debt is well covered by operating cash flow (26.7%).

Interest Coverage: RM's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Regional Management current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate RM'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 RM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RM'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 RM'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?

1.9yrs

Average management tenure


CEO

Rob Beck (56 yo)

0.42

Tenure

US$1,104,694

Compensation

Mr. Robert William Beck, also known as Rob, serves as President, Chief Executive Officer and Director at Regional Management Corp. since March 26, 2020 and served as its Executive Vice President and Chief ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD1.10M) is about average for companies of similar size in the US market ($USD1.30M).

Compensation vs Earnings: Insufficient data to compare Rob's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Beck
President0.42yrUS$1.10m0.51%
$ 1.0m
John Schachtel
Executive VP & COO3.25yrsUS$1.23m0.36%
$ 730.4k
Brian Fisher
Executive VP7.58yrsUS$1.07m0.30%
$ 617.9k
Michael Dymski
VP, Interim CFO & Chief Accounting Officer0.42yrno data0.34%
$ 690.9k
Bill Stubbs
Chief Human Resources Officer & VP8.08yrsno datano data
Manish Parmar
Executive VP & Chief Credit Risk Officer0.58yrno data0.14%
$ 289.9k

1.9yrs

Average Tenure

48yo

Average Age

Experienced Management: RM's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Beck
President0.42yrUS$1.10m0.51%
$ 1.0m
Alvaro de Molina
Independent Director8.42yrsUS$229.70k0.38%
$ 785.3k
Michael Dunn
Director6.08yrsUS$160.00k0.63%
$ 1.3m
Steven Freiberg
Independent Director6.08yrsUS$212.50k1.37%
$ 2.8m
Roel Campos
Independent Director8.42yrsUS$212.50k0.58%
$ 1.2m
Carlos Palomares
Independent Chairman1.08yrsUS$217.87k0.41%
$ 830.6k
Maria Contreras-Sweet
Independent Director2.58yrsUS$195.00k0.14%
$ 279.9k
Jonathan Brown
Independent Director2.58yrsUS$160.00k0.12%
$ 239.2k
Sandra Johnson
Independent Director0.33yrno data0.070%
$ 142.4k

2.6yrs

Average Tenure

63yo

Average Age

Experienced Board: RM's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: RM 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

Regional Management Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Regional Management Corp.
  • Ticker: RM
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$204.510m
  • Shares outstanding: 11.24m
  • Website: https://www.regionalmanagement.com

Number of Employees


Location

  • Regional Management Corp.
  • 979 Batesville Road
  • Suite B
  • Greer
  • South Carolina
  • 29651
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2012
46FDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2012

Biography

Regional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 23:46
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.