Price to trailing twelve month operating cash flow for RM is currently 2.01, higher than merely 8.13% of US stocks with positive operating cash flow.
For RM, its debt to operating expenses ratio is greater than that reported by 78.96% of US equities we're observing.
Regional Management Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 17.29%, greater than the shareholder yield of 89.13% of stocks in our set.
Stocks that are quantitatively similar to RM, based on their financial statements, market capitalization, and price volatility, are TWNK, PRAA, WGO, VRTS, and GEF.
Regional Management Corporation is a diversified specialty consumer finance company providing a broad array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies and other traditional lenders. The company was founded in 1987 and is based in Greenville, South Carolina.
RM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Regional Management Corp. To summarize, we found that Regional Management Corp ranked in the 84th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 605.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Regional Management Corp, consider:
32% of the company's capital comes from equity, which is greater than just 9.49% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 68% of the company's capital is sourced from debt; this is greater than 90.48% of the free cash flow producing stocks we're observing.
The weighted average cost of capital for the company is 9. This value is greater than 63.84% stocks in the Financial Services sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MFC, RNR, RGA, GNW, and CBOE can be thought of as valuation peers to RM, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback […]
Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced that its President and Chief Executive Officer Robert W. Beck, and its interim Chief Financial Officer Michael Dymski, will participate in a fireside chat at the Stephens Annual Investment Conference 2020 on Tuesday, November 17, 2020 via webcast. The fireside chat will begin at 8:00 AM Eastern Time.