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

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


Market Performance


7 Day Return

-0.8%

NYSE:RM

0.5%

US Consumer Finance

2.1%

US Market


1 Year Return

-22.1%

NYSE:RM

2.6%

US Consumer Finance

-0.04%

US Market

RM underperformed the Consumer Finance industry which returned 2.4% over the past year.

RM underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

RMIndustryMarket
7 Day-0.8%0.5%2.1%
30 Day3.9%-6.4%-3.2%
90 Day11.4%-0.8%2.8%
1 Year-22.1%-22.1%4.3%2.6%2.2%-0.04%
3 Year30.5%30.5%61.3%53.7%41.5%32.3%
5 Year57.9%57.9%39.1%29.2%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Regional Management's share price is below the future cash flow value, and at a moderate discount (> 20%).

Regional Management's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Regional Management is good value based on earnings compared to the US Consumer Finance industry average.

Regional Management is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Regional Management is good value based on expected growth next year.


Price Based on Value of Assets

Regional Management is good value based on assets compared to the US Consumer Finance industry average.


Next Steps

Future Growth

How is Regional Management expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Regional Management's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

Regional Management's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).

Regional Management's revenue growth is expected to exceed the United States of America market average.

Regional Management's earnings growth is expected to exceed the United States of America market average.

Regional Management's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Regional Management is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Regional Management's year on year earnings growth rate has been positive over the past 5 years.

Regional Management's 1-year earnings growth is less than its 5-year average (4.1% vs 15.1%)

Regional Management's earnings growth has not exceeded the US Consumer Finance industry average in the past year (4.1% vs 30.9%).


Return on Equity

Regional Management has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Regional Management used its assets more efficiently than the US Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Regional Management's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Regional Management's financial position?


Financial Position Analysis

Regional Management is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Regional Management's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Regional Management's level of debt (235%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (188.9% vs 235% today).

Debt is well covered by operating cash flow (22.4%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Regional Management's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Regional Management's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Regional Management has not reported any payouts.

Unable to verify if Regional Management's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Regional Management has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Peter Knitzer (60yo)

3.0yrs

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

Peter's remuneration is higher than average for companies of similar size in United States of America.

Peter's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

52.5yo

Average Age

The tenure for the Regional Management management team is about average.


Board Age and Tenure

4.6yrs

Average Tenure

62.5yo

Average Age

The tenure for the Regional Management board of directors is about average.


Insider Trading

More shares have been bought than sold by Regional Management individual insiders in the past 3 months.


Recent Insider Transactions

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$792,73912 Aug 19
Basswood Partners, L.L.C.
EntityCompany
Shares29,220
Max PriceUS$27.13
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
BuyUS$1,657,51729 May 19
Basswood Capital Management, L.L.C.
EntityCompany
Shares68,977
Max PriceUS$24.03
SellUS$1,651,99929 May 19
Basswood Capital Management, L.L.C.
EntityCompany
Shares68,977
Max PriceUS$23.95

Ownership Breakdown


Management Team

  • Don Thomas (60yo)

    Consultant

    • Tenure: 0.1yrs
    • Compensation: US$1.30m
  • Peter Knitzer (60yo)

    President

    • Tenure: 3.0yrs
    • Compensation: US$2.65m
  • Bill Stubbs

    Chief Human Resources Officer & VP

    • Tenure: 7.1yrs
  • Brian Fisher (35yo)

    Senior VP

    • Tenure: 6.6yrs
    • Compensation: US$927.71k
  • John Schachtel (58yo)

    Executive VP & COO

    • Tenure: 2.3yrs
    • Compensation: US$1.07m
  • Daniel Taggart (46yo)

    Executive VP & Chief Credit Risk Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.02m
  • Michael Dymski (47yo)

    VP & Chief Accounting Officer

    • Tenure: 3.3yrs
  • Rob Beck

    Executive VP & CFO

    • Tenure: 0.1yrs

Board Members

  • Al de Molina (61yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$232.13k
  • Mike Dunn (67yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$147.34k
  • Steve Freiberg (62yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$211.53k
  • Peter Knitzer (60yo)

    President

    • Tenure: 3.0yrs
    • Compensation: US$2.65m
  • Roel Campos (70yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$211.53k
  • Carlos Palomares (74yo)

    Chairman

    • Tenure: 0.1yrs
    • Compensation: US$212.25k
  • Maria Contreras-Sweet (63yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$191.82k
  • Jonathan Brown (34yo)

    Director

    • Tenure: 1.6yrs
    • 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$308.283m
  • 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 Analysis2019/08/23 00:23
End of Day Share Price2019/08/22 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.