Atlanticus Holdings (ATLC) AI Stock Analysis

• Market Cap: $774.77M
• Dividend Yield: N/A
• Average Volume (3M): 77.34K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.61
• Revenue Growth: 15.21%
• EPS Growth: 20.25%
• Country: US
• Employees: 417
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 1.49
• Shares Outstanding: 15,126,229
• 10 Day Avg. Volume: 103,014
• 30 Day Avg. Volume: 77,337
• PEG Ratio: <0.01
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.71
• Enterprise Value/Market Cap: 3.82
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 2.84
• Enterprise Value/Ebitda: 1.67
• 1Y Price Target: $72.25
• Price Target Upside: 43.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 65 Neutral
• 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 Business Overview & Revenue Model

Company Description

Atlanticus 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 Money

Atlanticus 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	299.40M	1.16B	292.56M	399.80M	340.27M
Gross Profit	283.03M	1.05B	248.69M	361.57M	307.79M
EBITDA	1.49M	241.94M	0.00	0.00	0.00
Net Income	111.30M	102.84M	135.60M	177.90M	94.12M
Balance Sheet
Total Assets	3.27B	2.71B	2.39B	1.94B	1.21B
Cash, Cash Equivalents and Short-Term Investments	499.64M	383.65M	384.98M	409.66M	178.10M
Total Debt	2.51B	2.03B	1.82B	1.43B	923.69M
Total Liabilities	2.78B	2.17B	2.02B	1.62B	1.09B
Stockholders Equity	492.91M	434.68M	366.41M	328.00M	117.28M
Cash Flow
Free Cash Flow	467.62M	455.32M	341.28M	205.28M	211.99M
Operating Cash Flow	469.40M	459.32M	346.13M	212.37M	212.73M
Investing Cash Flow	-747.03M	-672.20M	-680.78M	-475.02M	-292.57M
Financing Cash Flow	393.61M	163.34M	261.25M	510.33M	162.38M

Atlanticus Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	74 Outperform	$549.55M	2.97	14.69%	0.94%	12.45%	-36.64%
NRDS	73 Outperform	$811.44M	27.65	7.86%	―	24.20%	―
RM	72 Outperform	$318.35M	10.14	9.51%	3.74%	6.57%	44.84%
Sector *	68 Neutral	$17.10B	11.19	9.70%	3.58%	11.11%	-4.55%
PRAA	66 Neutral	$632.16M	8.91	6.03%	―	23.90%	―
ATLC	65 Neutral	$774.77M	9.92	22.68%	―	15.21%	20.25%
WRLD	63 Neutral	$843.28M	9.47	19.08%	―	0.77%	―

Atlanticus Holdings Corporate Events

Atlanticus Holdings Concludes Annual Shareholders Meeting

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.