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Atlanticus Holdings (ATLC)
NASDAQ:ATLC
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Atlanticus Holdings (ATLC) AI Stock Analysis

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ATLC

Atlanticus Holdings

(NASDAQ:ATLC)

Rating:65Neutral
Price Target:
$55.00
▲(9.47%Upside)
Atlanticus Holdings demonstrates strong financial performance with significant revenue growth and robust cash flow. However, the negative technical indicators and high leverage are notable concerns. The stock's undervaluation provides some upside potential, but the lack of dividend yield may deter income investors. The absence of recent earnings call data and corporate events means these factors did not impact the score.
Positive Factors
Growth Outlook
The significant growth rate anticipated for the next three years reinforces confidence in ATLC shares.
Macroeconomic Trends
Improving macroeconomic trends for borrowers and a mix shift to lower-loss retail cards lead to better credit losses, contributing to a higher earnings estimate.
Merchant Partnerships
Atlanticus's growth is driven by its own efforts in merchant partnerships and credit card offerings, which could protect the company in an economic downturn.
Negative Factors
Expenses and Earnings
Expenses were 9% higher than consensus, impacting earnings per share and target price.
Price Target Adjustment
The price target is being lowered from $75 to $72 due to a reduction in the target multiple on future EPS, reflecting recent contraction in market and peer valuations.
Regulatory Concerns
Management continues to focus on the potential impact of updated late fee rules which could significantly decrease total late fee collections.

Atlanticus Holdings (ATLC) vs. SPDR S&P 500 ETF (SPY)

Atlanticus Holdings Business Overview & Revenue Model

Company DescriptionAtlanticus Holdings Corporation provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, educational services, and home-improvements by partnering with retailers and service providers. In addition, it offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. Further, the company invests in and services portfolios of credit card receivables. Atlanticus Holdings Corporation was founded in 1996 and is headquartered in Atlanta, Georgia.
How the Company Makes MoneyAtlanticus Holdings makes money through a variety of revenue streams centered around its consumer credit offerings. The company earns interest income from its portfolio of credit card loans and unsecured consumer loans. Additionally, Atlanticus generates fee income from various services associated with its credit products, such as account maintenance fees, late fees, and other ancillary charges. The company also benefits from partnerships with retailers and other financial institutions that enhance its distribution capabilities and expand its customer base. By utilizing data analytics and risk management strategies, Atlanticus is able to manage credit risk effectively, optimize its lending practices, and maximize its financial returns.

Atlanticus Holdings Financial Statement Overview

Summary
Atlanticus Holdings has demonstrated significant revenue growth and strong cash flow generation. However, decreasing profitability margins and high leverage are concerns, balanced by improvements in the equity ratio.
Income Statement
85
Very Positive
Atlanticus Holdings has demonstrated significant growth in its total revenue, with a noticeable increase from $292.6M in 2022 to $1.31B in 2024. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has decreased over time, reflecting potential challenges in maintaining profitability despite higher revenues. EBIT and EBITDA margins have also declined, suggesting increased operational costs or reduced pricing power.
Balance Sheet
78
Positive
The company's debt-to-equity ratio indicates a high level of leverage, with total debt significantly exceeding stockholders' equity. Despite this, the equity ratio has improved over the years, reflecting increased shareholder equity relative to total assets. Return on equity (ROE) has shown variability, indicating potential fluctuations in profitability. The balance sheet shows a strong cash position, enhancing liquidity.
Cash Flow
82
Very Positive
Operating cash flow has been consistently strong, supporting robust free cash flow figures. The free cash flow to net income ratio is favorable, indicating efficient cash generation relative to earnings. However, the high investing cash outflows could pose a risk if not carefully managed, suggesting significant reinvestment into the business or acquisitions.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue299.40M1.16B292.56M399.80M340.27M
Gross Profit283.03M1.05B248.69M361.57M307.79M
EBITDA1.49M241.94M0.000.000.00
Net Income111.30M102.84M135.60M177.90M94.12M
Balance Sheet
Total Assets3.27B2.71B2.39B1.94B1.21B
Cash, Cash Equivalents and Short-Term Investments499.64M383.65M384.98M409.66M178.10M
Total Debt2.51B2.03B1.82B1.43B923.69M
Total Liabilities2.78B2.17B2.02B1.62B1.09B
Stockholders Equity492.91M434.68M366.41M328.00M117.28M
Cash Flow
Free Cash Flow467.62M455.32M341.28M205.28M211.99M
Operating Cash Flow469.40M459.32M346.13M212.37M212.73M
Investing Cash Flow-747.03M-672.20M-680.78M-475.02M-292.57M
Financing Cash Flow393.61M163.34M261.25M510.33M162.38M

Atlanticus Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price50.24
Price Trends
50DMA
52.29
Negative
100DMA
51.77
Negative
200DMA
51.89
Negative
Market Momentum
MACD
-0.44
Positive
RSI
39.46
Neutral
STOCH
47.42
Neutral
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 50.24 is below the 20-day moving average (MA) of 54.48, below the 50-day MA of 52.29, and below the 200-day MA of 51.89, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 39.46 is Neutral, neither overbought nor oversold. The STOCH value of 47.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATLC.

Atlanticus Holdings Risk Analysis

Atlanticus Holdings disclosed 53 risk factors in its most recent earnings report. Atlanticus Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Atlanticus Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$549.55M2.9714.69%0.94%12.45%-36.64%
73
Outperform
$811.44M27.657.86%24.20%
72
Outperform
$318.35M10.149.51%3.74%6.57%44.84%
68
Neutral
$17.10B11.199.70%3.58%11.11%-4.55%
66
Neutral
$632.16M8.916.03%23.90%
65
Neutral
$774.77M9.9222.68%15.21%20.25%
63
Neutral
$843.28M9.4719.08%0.77%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATLC
Atlanticus Holdings
50.24
14.68
41.28%
PRAA
Pra Group
15.75
-9.79
-38.33%
RM
Regional Management
32.03
1.50
4.91%
WRLD
World Acceptance
159.09
38.93
32.40%
YRD
Yiren Digital
6.20
1.86
42.86%
NRDS
NerdWallet, Inc. Class A
10.96
-5.09
-31.71%

Atlanticus Holdings Corporate Events

Shareholder Meetings
Atlanticus Holdings Concludes Annual Shareholders Meeting
Neutral
May 13, 2025

Atlanticus Holdings Corporation held its Annual Meeting of Shareholders on May 8, 2025, where shareholders voted on three key proposals. All seven director nominees were elected for terms expiring at the 2026 Annual Meeting, the executive compensation was approved, and it was decided that future say-on-pay votes will occur every three years.

The most recent analyst rating on (ATLC) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Atlanticus Holdings stock, see the ATLC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025