World Acceptance Corp. (WRLD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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World Acceptance Corp.

H&E Equipment Services, Inc.

Why is World Acceptance Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of 1.13% and Operating profit at 5.61%

ROCE(HY) Lowest at 10.97%
INTEREST COVERAGE RATIO(Q) Lowest at 511.4
DEBT-EQUITY RATIO (HY) Highest at 201.85 %

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is World Acceptance Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

World Acceptance Corp.

11.96%

0.07

50.65%

S&P 500

16.12%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.13%

EBIT Growth (5y)

5.61%

EBIT to Interest (avg)

7.62

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

19.86%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

86.91%

ROCE (avg)

75.76%

ROE (avg)

16.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.87

EV to EBIT

2.13

EV to EBITDA

2.06

EV to Capital Employed

1.99

EV to Sales

1.07

PEG Ratio

Dividend Yield

ROCE (Latest)

93.51%

ROE (Latest)

13.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.26% (YoY

CASH AND EQV(HY)

Highest at USD 57.1 MM

-25What is not working for the Company

ROCE(HY)

Lowest at 10.97%

INTEREST COVERAGE RATIO(Q)

Lowest at 511.4

DEBT-EQUITY RATIO (HY)

Highest at 201.85 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 48.68 times

INTEREST(Q)

Highest at USD 12.79 MM

PRE-TAX PROFIT(Q)

Lowest at USD -1.01 MM

NET PROFIT(Q)

Lowest at USD -0.91 MM

Here's what is working for World Acceptance Corp.

Cash and Eqv

Highest at USD 57.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.26% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for World Acceptance Corp.

Pre-Tax Profit

At USD -1.01 MM has Fallen at -106.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -0.91 MM has Fallen at -106.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 12.79 MM has Grown at 20.14%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 511.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 12.79 MM

in the last five periods and Increased by 20.14% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD -1.01 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -0.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 201.85 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 48.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio