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

Encore Capital Group, Inc.

Rocket Cos., Inc.

Enova International, Inc.

Federal Agricultural Mortgage Corp.

Custom Truck One Source, Inc.

PROG Holdings, Inc.

Textainer Group Holdings Ltd.

World Acceptance Corp.

AdaptHealth Corp.

U-Haul Holding Co.

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%

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At USD 35.62 MM has Grown at -38.43%
ROCE(HY) Lowest at 8.86%
DEBT-EQUITY RATIO (HY) Highest at 180 %

With ROE of 13.26%, it has a fair valuation with a 1.83 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 11.60%, its profits have fallen by -42.8%

Underperformed the market in the last 1 year

The stock has generated a return of 11.60% in the last 1 year, much lower than market (S&P 500) returns of 25.41%

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, High Return

Absolute

Risk Adjusted

Volatility

World Acceptance Corp.

11.6%

0.82

49.44%

S&P 500

25.41%

1.92

13.25%

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

90.94%

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

1.83

EV to EBIT

2.08

EV to EBITDA

2.02

EV to Capital Employed

1.95

EV to Sales

1.05

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

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.25% (YoY

CASH AND EQV(HY)

Highest at USD 71.59 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 483.97 times

NET SALES(Q)

Highest at USD 177.57 MM

-10What is not working for the Company

NET PROFIT(HY)

At USD 35.62 MM has Grown at -38.43%

ROCE(HY)

Lowest at 8.86%

DEBT-EQUITY RATIO (HY)

Highest at 180 %

Here's what is working for World Acceptance Corp.

Net Sales

Highest at USD 177.57 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 71.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 483.97 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.25% (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.

Net Profit

At USD 35.62 MM has Grown at -38.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 180 %

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