Atlanticus Holdings (ATLC) AI Stock Analysis

• Market Cap: $811.89M
• Dividend Yield: N/A
• Average Volume (3M): 78.05K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.83
• Revenue Growth: 25.29%
• EPS Growth: 26.70%
• Country: US
• Employees: 417
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.48
• Shares Outstanding: 15,141,530
• 10 Day Avg. Volume: 102,214
• 30 Day Avg. Volume: 78,048
• PEG Ratio: 0.68
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 1.76
• Enterprise Value/Market Cap: 8.25
• Enterprise Value/Revenue: 11.34
• Enterprise Value/Gross Profit: 18.71
• Enterprise Value/Ebitda: 41.70
• 1Y Price Target: $88.25
• Price Target Upside: 61.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 5.97
• Revenue Forecast (FY): $1.93B

• Rating: 60 Neutral
• Price Target: $55.00 ▲(0.84% Upside)

Atlanticus Holdings' overall stock score is primarily influenced by its strong financial performance, despite high leverage and cash flow challenges. The technical analysis indicates a bearish trend, which negatively impacts the score. The valuation suggests the stock is undervalued, providing some upside potential. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful market penetration and product demand, supporting long-term business expansion.

Transformational Acquisition

The acquisition enhances scale, technology, and origination capabilities, positioning Atlanticus for sustained growth and competitive advantage.

Profitability

A strong gross profit margin reflects effective cost management and pricing power, contributing to long-term profitability and financial health.

Negative Factors

High Leverage

Significant leverage poses financial risk, potentially impacting cash flow and limiting strategic flexibility in the long term.

Cash Flow Constraints

Low cash flow conversion indicates potential liquidity issues, which could hinder investment in growth initiatives and debt servicing.

Modest Net Profit Margin

A modest net profit margin suggests room for improvement in cost efficiency, which is crucial for enhancing long-term profitability.

Atlanticus Holdings Business Overview & Revenue Model

Company Description

Atlanticus Holdings Corporation (ATLC) is a financial services company that primarily operates in the consumer finance sector. The company focuses on providing credit solutions to underserved markets, offering a range of products including credit cards, installment loans, and other financing options. Atlanticus aims to empower consumers by providing access to credit that may not be available through traditional banking institutions.

How the Company Makes Money

Atlanticus generates revenue through various channels, including interest income from loans and fees associated with its credit products. The company primarily earns money by extending credit to consumers who may have limited access to traditional financing, charging interest on outstanding balances. Additionally, Atlanticus collects fees related to account maintenance, late payments, and transaction processing. The company may also benefit from partnerships with retailers and service providers, offering co-branded credit products that can enhance customer acquisition and retention, thereby increasing its revenue streams.

Atlanticus Holdings Financial Statement Overview

Summary

Atlanticus Holdings demonstrates robust revenue growth and profitability with a strong gross profit margin. However, the company faces challenges with high leverage, as indicated by a high debt-to-equity ratio, and cash flow management issues. Improving operational efficiency and reducing debt levels are critical for enhancing financial stability.

Income Statement

Atlanticus Holdings shows strong revenue growth with an 11.88% increase in TTM, supported by a solid gross profit margin of 114.53%. However, the net profit margin is relatively modest at 8.54%, indicating room for improvement in cost management. The EBIT margin has decreased compared to previous years, suggesting potential challenges in operational efficiency.

Balance Sheet

The company exhibits a high debt-to-equity ratio of 9.09, indicating significant leverage, which could pose financial risk. Return on equity is healthy at 20.20%, reflecting effective use of equity to generate profits. However, the equity ratio is low, suggesting a reliance on debt financing.

Cash Flow

Operating cash flow is strong, but the free cash flow growth rate has declined by 0.48% in TTM. The operating cash flow to net income ratio is low at 0.09, indicating potential cash flow constraints. However, the free cash flow to net income ratio is nearly 1, showing efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	590.14M	459.57M	365.68M	374.42M	453.93M	391.81M
Gross Profit	357.75M	283.03M	254.19M	291.31M	363.34M	197.55M
EBITDA	160.54M	143.76M	132.60M	154.12M	222.07M	122.34M
Net Income	118.37M	111.30M	102.84M	135.60M	177.90M	94.12M
Balance Sheet
Total Assets	7.08B	3.27B	2.71B	2.39B	1.94B	1.21B
Cash, Cash Equivalents and Short-Term Investments	425.02M	375.42M	339.34M	384.98M	409.66M	178.10M
Total Debt	6.06B	2.51B	2.03B	1.82B	1.43B	923.69M
Total Liabilities	6.49B	2.78B	2.31B	2.06B	1.66B	1.13B
Stockholders Equity	589.34M	492.91M	394.68M	326.41M	288.00M	77.28M
Cash Flow
Free Cash Flow	487.84M	467.62M	455.32M	341.28M	205.28M	211.99M
Operating Cash Flow	494.31M	469.40M	459.32M	346.13M	212.37M	212.73M
Investing Cash Flow	-1.20B	-747.03M	-672.20M	-680.78M	-475.02M	-292.57M
Financing Cash Flow	850.24M	393.61M	163.34M	261.25M	510.33M	162.38M

Atlanticus Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 54.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLC, the sentiment is Neutral. The current price of 54.54 is above the 20-day moving average (MA) of 54.43, below the 50-day MA of 58.39, and below the 200-day MA of 55.43, indicating a neutral trend. The MACD of -1.39 indicates Negative momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 68.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATLC.

Atlanticus Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EZPW	75 Outperform	$1.09B	12.90	11.98%	―	9.70%	26.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RM	67 Neutral	$351.12M	8.76	11.43%	3.04%	9.63%	77.14%
WRLD	63 Neutral	$709.81M	13.48	14.57%	―	2.31%	-27.81%
OPRT	62 Neutral	$206.08M	7.09	8.59%	―	-5.29%	―
PRAA	61 Neutral	$606.30M	―	-31.97%	―	13.89%	-899.50%
ATLC	60 Neutral	$811.89M	9.27	21.01%	―	25.29%	26.70%

Atlanticus Holdings Corporate Events

Atlanticus Holdings Acquires Mercury Financial LLC

On September 11, 2025, Atlanticus Holdings Corporation announced the acquisition of Mercury Financial LLC, a data- and tech-centric credit card platform for near-prime consumers in the U.S. The acquisition adds 1.3 million credit card accounts and $3.2 billion in credit card receivables to Atlanticus’ portfolio, enhancing its product offerings and expanding its reach into the near-prime consumer segment. This strategic move is expected to drive significant value creation through portfolio optimization, cost synergies, and increased originations, while also providing growth opportunities through new marketing channels and product expansion.

The most recent analyst rating on (ATLC) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Atlanticus Holdings stock, see the ATLC Stock Forecast page.

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.

The most recent analyst rating on (ATLC) stock is a Buy with a $78.00 price target. To see the full list of analyst forecasts on Atlanticus Holdings stock, see the ATLC Stock Forecast page.