Atlanticus Holdings (ATLC) AI Stock Analysis

• Market Cap: $630.68M
• Dividend Yield: N/A
• Average Volume (3M): 63.91K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.98
• Revenue Growth: 13.55%
• EPS Growth: 5.87%
• Country: US
• Employees: 386
• Sector: Financial
• Sector Strength: 77
• Industry: Credit Finance
• EPS (TTM): 4.45
• Shares Outstanding: 14,738,862
• 10 Day Avg. Volume: 65,304
• 30 Day Avg. Volume: 63,909
• PEG Ratio: 1.64
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.81
• Price to Cash Flow (P/CF): 1.50
• P/FCF Ratio: 1.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $80.00
• Price Target Upside: 78.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Atlanticus Holdings demonstrates strong financial performance, particularly in profitability and cash flow, but high leverage is a concern. The stock's technical indicators show overall positive momentum, despite a slight short-term dip. Valuation appears reasonable, although the lack of a dividend yield may deter some investors. Lack of detailed earnings call insights keeps the score in check.

Positive Factors

Growth and Expansion

Atlanticus is growing through partnerships with major retailers like Lowe's and Home Depot, and potential new merchant partnerships.

Partnership Performance

The partnership with Synchrony Financial is gaining traction and performing above expectations, increasing confidence in the agreement.

Negative Factors

Cost of Living Impact

The cost of living remains high, with rent, gas, and food continuing to constrain borrowers’ household savings and liquidity.

Atlanticus Holdings Business Overview & Revenue Model

Company Description

Atlanticus Holdings Corporation is a financial services company that provides credit and related financial services to underserved consumers in the United States. The company primarily operates in the credit card and consumer loan sectors, offering a range of products designed to meet the needs of individuals who have limited access to traditional credit sources.

How the Company Makes Money

Atlanticus Holdings makes money through interest income and fees from its credit card and consumer loan portfolios. The company issues credit cards and provides consumer loans to individuals with less-than-perfect credit scores, earning revenue from interest charged on outstanding balances and fees such as annual fees, late payment fees, and service charges. Additionally, Atlanticus partners with various retail and financial institutions to offer private-label credit solutions, further diversifying its revenue streams. By focusing on underserved customer segments, Atlanticus benefits from higher interest rates and fees compared to traditional credit providers.

Atlanticus Holdings Financial Statement Overview

Summary

Atlanticus Holdings shows strong financial performance with high profitability and cash flow efficiency. Income statement and cash flow metrics are impressive, but the high leverage indicated by the balance sheet poses potential risks that require attention.

Income Statement

Atlanticus Holdings demonstrates strong profitability with a high gross profit margin of 92.50% TTM and a solid EBIT margin of 43.95% TTM. The revenue growth rate is impressive at 9.64% year-over-year, indicating a positive business trajectory. However, the net profit margin is lower at 7.39% TTM, suggesting room for improvement in cost management. Overall, the income statement reflects a healthy financial performance with potential for enhanced net income.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 5.04 TTM, indicative of significant leverage, which could pose financial risks. However, the return on equity is strong at 20.45% TTM, showcasing effective utilization of equity capital. The equity ratio is relatively low at 15.06% TTM, suggesting a reliance on debt financing. Overall, while the company is leveraging its equity well, the high debt level warrants careful monitoring.

Cash Flow

Cash flow performance is robust with a strong operating cash flow to net income ratio of 5.12 TTM, indicating efficient cash generation from operations. The free cash flow growth rate is notable at 5.29% year-over-year, reflecting positive cash flow trends. Additionally, the free cash flow to net income ratio is impressively high at 5.12 TTM, underscoring strong cash profitability. Overall, the cash flow statement highlights a healthy cash position with strong operational efficiency.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.27B	1.16B	292.56M	399.80M	340.27M	350.13M
	Gross Profit
1.17B	1.05B	248.69M	361.57M	307.79M	292.98M
	EBIT
556.82M	257.85M	207.03M	219.69M	114.59M	32.00M
	EBITDA
450.52M	241.94M	0.00	0.00	0.00	45.19M
	Net Income Common Stockholders
93.66M	102.84M	135.60M	177.90M	94.12M	26.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
61.09M	383.65M	384.98M	409.66M	178.10M	135.48M
	Total Assets
582.61M	2.71B	2.39B	1.94B	1.21B	936.27M
	Total Debt
498.72M	2.03B	1.82B	1.43B	923.69M	799.48M
	Net Debt
437.63M	1.64B	1.43B	1.02B	745.59M	664.00M
	Total Liabilities
604.74M	2.17B	2.02B	1.62B	1.09B	895.93M
	Stockholders Equity
-21.79M	434.68M	366.41M	328.00M	117.28M	40.91M
Cash Flow		Free Cash Flow
479.39M	455.32M	341.28M	205.28M	211.99M	99.71M
	Operating Cash Flow
479.47M	459.32M	346.13M	212.37M	212.73M	99.96M
	Investing Cash Flow
-782.23M	-672.20M	-680.78M	-475.02M	-292.57M	-433.69M
	Financing Cash Flow
287.45M	163.34M	261.25M	510.33M	162.38M	368.72M

Atlanticus Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLC, the sentiment is Negative. The current price of 44.71 is below the 20-day moving average (MA) of 54.06, below the 50-day MA of 56.07, and above the 200-day MA of 42.11, indicating a neutral trend. The MACD of -3.48 indicates Positive momentum. The RSI at 29.30 is Positive, neither overbought nor oversold. The STOCH value of 12.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATLC.

Atlanticus Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATLC	76 Outperform	$630.68M	9.62	23.25%	―	13.55%	5.87%
RM	75 Outperform	$291.70M	7.65	12.14%	4.04%	6.73%	151.08%
ENVA	74 Outperform	$2.25B	11.72	17.19%	―	25.51%	36.96%
CACC	70 Neutral	$5.67B	23.74	14.15%	―	13.70%	-9.00%
WRLD	68 Neutral	$690.18M	8.50	19.28%	―	-2.78%	24.39%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%
OPRT	58 Neutral	$213.19M	―	-20.76%	―	-5.22%	60.29%