NYSE:RM

Stock Analysis Report

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 traditional lenders.

Snowflake

Fundamentals

Good value 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


Market Performance


7 Day Return

6.5%

RM

2.9%

US Consumer Finance

1.8%

US Market


1 Year Return

2.8%

RM

6.8%

US Consumer Finance

7.3%

US Market

Return vs Industry: RM underperformed the US Consumer Finance industry which returned 6.8% over the past year.

Return vs Market: RM underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

RMIndustryMarket
7 Day6.5%2.9%1.8%
30 Day3.4%-3.4%-0.7%
90 Day10.3%-4.8%0.06%
1 Year2.8%2.8%8.7%6.8%9.7%7.3%
3 Year30.8%30.8%55.7%48.2%46.3%36.9%
5 Year66.7%66.7%41.7%31.3%64.5%46.5%

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?

19.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RM ($28.82) is trading below our estimate of fair value ($35.69)

Significantly Undervalued: RM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RM is poor value based on its PE Ratio (9.7x) compared to the Consumer Finance industry average (8.4x).

PE vs Market: RM is good value based on its PE Ratio (9.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: RM is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: RM is good value based on its PB Ratio (1.2x) 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 6 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RM's forecast earnings growth (15.7% per year) is above the savings rate (2.7%).

Earnings vs Market: RM's earnings (15.7% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: RM's earnings are forecast to grow, but not significantly.

Revenue vs Market: RM's revenue (11.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: RM's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RM's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Regional Management performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RM's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: RM's earnings growth over the past year (4.1%) is below its 5-year average (15.1% per year).

Earnings vs Industry: RM earnings growth over the past year (4.1%) underperformed the Consumer Finance industry 25.5%.


Return on Equity

High ROE: RM's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: RM has a higher Return on Assets than the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: RM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Regional Management's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RM has a low level of unsold assets or inventory.

Debt Coverage by Assets: RM's debt is covered by short term assets (assets are 1.405860x debt).


Financial Institutions Analysis

Asset Level: RM's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if RM has a sufficient allowance for bad loans.

Low Risk Liabilities: RM reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if RM has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RM has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if RM has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Regional Management's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Peter Knitzer (60yo)

3.2yrs

Tenure

US$2,648,692

Compensation

Mr. Peter R. Knitzer has been the Chief Executive Officer of Regional Management Corp. since August 1, 2016 and has been its President since May 16, 2017. Mr. Knitzer served as an Executive Vice President  ...


CEO Compensation Analysis

Compensation vs. Market: Peter's total compensation ($USD2.65M) is about average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Peter's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: RM's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: RM's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,938,75004 Sep 19
Basswood Capital Management, L.L.C.
EntityCompany
Shares75,000
Max PriceUS$25.85
BuyUS$1,941,00004 Sep 19
Basswood Capital Management, L.L.C.
EntityCompany
Shares75,000
Max PriceUS$25.88
BuyUS$132,89016 Aug 19
Robert Beck
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,000
Max PriceUS$26.73
BuyUS$109,84014 Aug 19
John Schachtel
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares4,000
Max PriceUS$27.46
BuyUS$861,35012 Aug 19
Basswood Capital Management, L.L.C.
EntityCompany
Shares31,749
Max PriceUS$27.13
SellUS$860,39812 Aug 19
Basswood Capital Management, L.L.C.
EntityCompany
Shares31,749
Max PriceUS$27.10
BuyUS$53,26009 Aug 19
John Schachtel
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares2,000
Max PriceUS$26.63
BuyUS$182,91007 Aug 19
John Schachtel
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares7,000
Max PriceUS$26.30
BuyUS$129,95007 Aug 19
Robert Beck
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,000
Max PriceUS$25.99
SellUS$1,651,99929 May 19
Basswood Capital Management, L.L.C.
EntityCompany
Shares68,977
Max PriceUS$23.95
BuyUS$1,657,51729 May 19
Basswood Capital Management, L.L.C.
EntityCompany
Shares68,977
Max PriceUS$24.03

Ownership Breakdown


Management Team

  • Peter Knitzer (60yo)

    President

    • Tenure: 3.2yrs
    • Compensation: US$2.65m
  • Bill Stubbs

    Chief Human Resources Officer & VP

    • Tenure: 7.3yrs
  • Brian Fisher (35yo)

    Senior VP

    • Tenure: 6.8yrs
    • Compensation: US$927.71k
  • John Schachtel (58yo)

    Executive VP & COO

    • Tenure: 2.4yrs
    • Compensation: US$1.07m
  • Michael Dymski (47yo)

    VP & Chief Accounting Officer

    • Tenure: 3.5yrs
  • Rob Beck

    Executive VP & CFO

    • Tenure: 0.3yrs

Board Members

  • Al de Molina (61yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$232.13k
  • Mike Dunn (67yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$147.34k
  • Steve Freiberg (62yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$211.53k
  • Peter Knitzer (60yo)

    President

    • Tenure: 3.2yrs
    • Compensation: US$2.65m
  • Roel Campos (70yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$211.53k
  • Carlos Palomares (74yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: US$212.25k
  • Maria Contreras-Sweet (63yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$191.82k
  • Jonathan Brown (34yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$167.49k

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$330.901m
  • Shares outstanding: 11.48m
  • 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

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 Analysis2019/10/18 00:56
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.