RM's current price/earnings ratio is 6.53, which is higher than merely 9.47% of US stocks with positive earnings.
The price/operating cash flow metric for Regional Management Corp is higher than merely 8.38% of stocks in our set with a positive cash flow.
Regional Management Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is -60.28%, greater than the shareholder yield of just 7.43% of stocks in our set.
Stocks that are quantitatively similar to RM, based on their financial statements, market capitalization, and price volatility, are GTX, PLOW, VRTS, GFN, and KAR.
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 89th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1404% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for RM, they are:
19% of the company's capital comes from equity, which is greater than only 8.5% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 81% of the company's capital is sourced from debt; this is greater than 91.46% 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 62.92% of stocks in its sector (Financial Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SG, SSSS, AMP, CNO, and MFC 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.