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:
We started the process of determining a valid price forecast for Regional Management Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Regional Management Corp ranked in the 86th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1071.67%. The most interesting components of our discounted cash flow analysis for Regional Management Corp ended up being:
25% of the company's capital comes from equity, which is greater than merely 10.08% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 75% of the company's capital is sourced from debt; this is greater than 89.89% of the free cash flow producing stocks we're observing.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 64.57% of stocks in its sector (Financial Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Regional Management Corp? See AINC, GAIN, PSEC, CNO, and MFC.
Regional Management (RM) originated $105.8M of loans in August, up 34% from $79.0M in June, with branch originations rising 21% during the same period to $80.8M.Anticipates fewer branch, direct mail, and digital originations in September, which is typically a slower month, vs. August.As of Aug. 31, 2020, RM's 30+ day...
GREENVILLE, S.C.--(BUSINESS WIRE)--Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today provided an update on its business operations and financial position. As of August 31, 2020, our credit profile remains stable, demand for our loan products continues to rebound, our balance sheet remains strong, and we maintain access to ample liquidity to fund our business operations and growth. Our proven operating model and financial strength enable us to continue to provid
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