Atlanticus Holdings (ATLC) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: N/A
• Average Volume (3M): 42.03K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.68
• Revenue Growth: 19.27%
• EPS Growth: 34.76%
• Country: US
• Employees: 417
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Credit Services
• EPS (TTM): 1.51
• Shares Outstanding: 15,125,449
• 10 Day Avg. Volume: 35,333
• 30 Day Avg. Volume: 42,031
• PEG Ratio: 1.00
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 2.75
• P/FCF Ratio: 1.76
• Enterprise Value/Market Cap: 3.27
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 3.26
• Enterprise Value/Ebitda: 8.43
• 1Y Price Target: $76.00
• Price Target Upside: 10.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $72.00 ▲(4.71% Upside)

Atlanticus Holdings scores well due to strong financial performance and positive corporate events. The stock's bullish technical indicators further support a favorable outlook. However, high leverage and decreased profitability margins are concerns. The reasonable valuation and absence of a dividend yield are additional considerations.

Positive Factors

Credit Trends

Atlanticus's credit trends are improving, with declines in net charge-off rates and delinquencies.

Earnings Performance

Purchase volumes grew an impressive 37% q/q and 51% y/y, and were the primary driver of the revenue beat.

Growth Opportunities

The significant growth rate anticipated for the next three years reinforces confidence in ATLC shares.

Negative Factors

Expenses

Expenses were 9% higher than consensus, impacting earnings per share and target price.

Regulation

Management continues to focus on the potential impact of updated late fee rules which could significantly decrease total late fee collections.

Valuation

Despite a steep discount in valuation, there is significant upside potential for ATLC shares.

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 generates revenue through various channels, primarily by offering consumer credit products and financial services. The company's main revenue streams include interest income from loans and credit products, fees associated with credit card transactions, and service fees from its technology platform. Additionally, Atlanticus partners with retailers and other businesses to offer private label credit cards, which further enhances its revenue potential through merchant partnerships and transaction fees. The company's focus on underserved markets allows it to charge higher interest rates compared to traditional financial institutions, contributing significantly to its earnings.

Atlanticus Holdings Financial Statement Overview

Summary

Atlanticus Holdings has shown impressive revenue growth and strong cash flow generation. Despite decreased profitability margins and high leverage, the company maintains a strong cash position and has improved its equity ratio, indicating robust financial performance with a focus on growth and reinvestment.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.15B	1.31B	365.68M	1.05B	748.06M	563.41M
Gross Profit	1.04B	1.26B	254.19M	248.69M	671.17M	492.41M
EBITDA	403.59M	301.46M	241.94M	233.30M	304.63M	173.89M
Net Income	113.07M	111.30M	102.84M	135.60M	177.90M	94.12M
Balance Sheet
Total Assets	3.27B	3.27B	2.71B	2.39B	1.94B	1.21B
Cash, Cash Equivalents and Short-Term Investments	350.39M	499.64M	383.65M	384.98M	506.63M	178.10M
Total Debt	2.50B	2.51B	2.03B	1.82B	1.43B	923.69M
Total Liabilities	2.74B	2.69B	2.17B	2.02B	1.62B	1.09B
Stockholders Equity	532.71M	532.91M	434.68M	366.41M	328.00M	117.28M
Cash Flow
Free Cash Flow	480.65M	467.62M	455.32M	341.28M	205.28M	211.99M
Operating Cash Flow	482.18M	469.40M	459.32M	346.13M	212.37M	212.73M
Investing Cash Flow	-794.39M	-747.03M	-672.20M	-680.78M	-475.02M	-292.57M
Financing Cash Flow	291.36M	393.61M	163.34M	261.25M	510.33M	162.38M

Atlanticus Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLC, the sentiment is Positive. The current price of 68.76 is above the 20-day moving average (MA) of 64.07, above the 50-day MA of 57.35, and above the 200-day MA of 54.95, indicating a bullish trend. The MACD of 3.47 indicates Negative momentum. The RSI at 71.75 is Negative, neither overbought nor oversold. The STOCH value of 83.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATLC.

Atlanticus Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATLC	78 Outperform	$1.04B	12.09	22.83%	―	19.27%	34.76%
YRD	76 Outperform	$500.29M	2.87	13.64%	6.74%	12.69%	-35.36%
RM	74 Outperform	$429.20M	12.35	9.81%	2.74%	7.32%	38.85%
NRDS	73 Outperform	$779.76M	16.33	12.24%	―	28.75%	―
WRLD	69 Neutral	$957.15M	11.86	19.08%	―	0.77%	12.08%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
PRAA	65 Neutral	$662.69M	7.31	7.38%	―	18.67%	2254.86%

Atlanticus Holdings Corporate Events

Atlanticus Holdings Completes $400M Senior Notes Offering

On August 20, 2025, Atlanticus Holdings Corporation completed a private offering of $400 million in 9.750% Senior Notes due 2030. The proceeds are intended for repaying outstanding amounts under recourse warehouse facilities, funding future acquisitions, and repaying existing 6.125% Senior Notes due 2026. The Notes are governed by an indenture and are unconditionally guaranteed by certain domestic subsidiaries. The offering aims to strengthen Atlanticus Holdings’ financial position and provide flexibility for future growth and acquisitions, while also imposing certain covenants and conditions to safeguard the company’s financial stability.