World Acceptance Corp

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WRLD : NASDAQ : Financial
$50.4 up 0.54 | 1.1%
Today's Range: 49.22 - 50.52
Avg. Daily Volume: 122900.0
03/29/17 - 10:53 AM ET

Financial Analysis


WORLD ACCEPTANCE CORP/DE's gross profit margin for the third quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 16.29% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)130.82139.7
EBITDA ($mil)21.4434.37
EBIT ($mil)19.5932.68
Net Income ($mil)9.6414.75


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)15.9920.94
Total Assets ($mil)860.94906.98
Total Debt ($mil)397.94511.94
Equity ($mil)421.99362.87


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin16.3924.6
EBITDA Margin16.3824.6
Operating Margin14.9823.39
Sales Turnover0.620.62
Return on Assets8.3111.69
Return on Equity16.9629.23
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.490.59
Interest Expense5.287.15
Interest Coverage3.714.57


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)8.788.92
Div / share0.00.0
EPS1.11.7
Book value / share48.0540.67
Institutional Own % n/a n/a
Avg Daily Volume119087.0102808.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 13.07 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 26.33. Conducting a second comparison, its price-to-book ratio of 1.01 indicates a significant discount versus the S&P 500 average of 2.93 and a discount versus the industry average of 2.15. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, WORLD ACCEPTANCE CORP/DE proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WRLD 5.94 Peers 13.07   WRLD 1.91 Peers 6.05

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WRLD is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WRLD is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WRLD 7.02 Peers 12.78   WRLD NM Peers 7.88

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

WRLD is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

WRLD's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WRLD 1.01 Peers 2.15   WRLD -31.75 Peers -2.04

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WRLD is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WRLD is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WRLD 0.80 Peers 1.92   WRLD -5.92 Peers 6.25

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WRLD is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WRLD significantly trails its peers on the basis of sales growth

 

 

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