World Acceptance Corp

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WRLD : NASDAQ : Financial
$47.18 -0.18 | -0.38%
Today's Range: 46.15 - 50.46
Avg. Daily Volume: 130,000
08/31/16 - 12:13 PM ET

Financial Analysis


WORLD ACCEPTANCE CORP/DE's gross profit margin for the first quarter of its fiscal year 2016 has 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 20.37% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)127.08137.23
EBITDA ($mil)33.9745.22
EBIT ($mil)32.1243.43
Net Income ($mil)16.6223.63


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)10.1217.21
Total Assets ($mil)810.43871.71
Total Debt ($mil)360.36488.95
Equity ($mil)404.78336.26


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin26.7332.95
EBITDA Margin26.7332.95
Operating Margin25.2731.65
Sales Turnover0.680.67
Return on Assets9.9112.83
Return on Equity19.8533.28
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.470.59
Interest Expense5.595.47
Interest Coverage5.757.94


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)8.798.97
Div / share0.00.0
EPS1.892.71
Book value / share46.0637.47
Institutional Own % n/a n/a
Avg Daily Volume131961.0125125.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 10.84 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 25.13. Conducting a second comparison, its price-to-book ratio of 1.01 indicates a significant discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 1.89. 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 5.03 Peers 10.84   WRLD 1.87 Peers 5.19

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 5.50 Peers 10.48   WRLD NM Peers 2.01

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 1.89   WRLD -25.33 Peers -15.73

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 0.75 Peers 1.69   WRLD -6.52 Peers 5.83

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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