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Regional Management (RM)
NYSE:RM
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Regional Management (RM) AI Stock Analysis

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RM

Regional Management

(NYSE:RM)

Rating:74Outperform
Price Target:
$45.00
▲(2.74% Upside)
Regional Management's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The stock's bullish technical indicators are tempered by overbought signals, and while valuation is attractive, rising interest expenses present a risk.
Positive Factors
Credit Trends
Management confirmed that peak credit stress was reached in 2023 and guidance implies steadily improving credit trends in the coming quarters.
Loan Growth
The company introduced its initial 2025 guidance, which points towards quicker loan growth for the year as credit continues to improve.
Negative Factors
Earnings
Increased provisioning brings the 2025 EPS forecast down, and similar estimate reductions by the Street have led to the shares trading down.
Revenue Yield
Revenue yield guidance is worse than consensus.

Regional Management (RM) vs. SPDR S&P 500 ETF (SPY)

Regional Management Business Overview & Revenue Model

Company DescriptionRegional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders in the United States. It offers small and large installment loans; and retail loans to finance the purchase of furniture, appliances, and other retail products. The company also provides insurance products, including credit life, credit accident and health, credit property, vehicle single interest, and credit involuntary unemployment insurance; collateral protection insurance; and property insurance, as well as reinsurance products. In addition, its loans are sourced through branches, centrally managed direct mail campaigns, digital partners, and retailers, as well as its consumer website. As of February 24, 2022, the company operated through a network of approximately 350 branches in 14 states. Regional Management Corp. was incorporated in 1987 and is headquartered in Greer, South Carolina.
How the Company Makes MoneyRegional Management generates revenue primarily through the interest income earned on the loans it issues to customers. The company's revenue model includes personal loans, which are typically unsecured and carry higher interest rates, as well as secured loans such as auto loans, which may have lower rates due to the collateral involved. Additionally, RM earns fees related to loan origination, servicing, and late payments. The company may also benefit from partnerships with retailers for point-of-sale financing, allowing customers to finance purchases directly at the store. The combination of interest income and fee revenue, along with a focus on expanding its customer base in underserved regions, contributes significantly to RM's overall earnings.

Regional Management Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call reflects a predominantly positive sentiment, with strong financial results, record growth in originations and portfolio size, and improved credit performance. The company demonstrated effective cost management and strategic expansion efforts. However, there were some challenges with increasing interest expenses and restructuring charges.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Net income of $10.1 million and diluted EPS of $1.03, an improvement of 20% year-over-year. Quarterly revenue reached a record level of $157 million.
Record Originations and Portfolio Growth
Total originations were at a record high of $510 million, with ending net receivables up 10.5% year-over-year.
Improved Credit Performance
30-day delinquency rate was 6.6%, improving by 50 basis points sequentially and 30 basis points year-over-year. Net credit loss rate was 11.9%, improving 50 basis points sequentially and 80 basis points year-over-year.
Expansion and Strategic Initiatives
Opened 2 new branches, totaling 17 new openings since last year. Continued investment in technology and analytics, with a new front-end origination platform and machine learning models.
Efficient Expense Management
Operating expense ratio improved 60 basis points year-over-year, reaching an all-time best at 13.2%.
Negative Updates
Interest Expense Increase
Interest expense increased due to the maturity of lower fixed-rate debt and funding growth with higher rate debt. Cost of funds expected to rise further in the upcoming quarters.
Restructuring Charges
A small restructuring was completed in the corporate offices, resulting in a restructuring charge in the third quarter.
Company Guidance
During the second quarter of 2025, Regional Management Corp. reported strong financial performance, with net income of $10.1 million and diluted earnings per share of $1.03, marking a 20% year-over-year improvement. The company's revenue reached a record $157 million, driven by $510 million in total originations, also a record high. The annualized operating expense ratio improved to 13.2%, a 60-basis-point improvement from the previous year. Net receivables grew by $70 million sequentially, reaching a year-over-year increase of 10.5%. Additionally, the 30-day delinquency rate improved by 50 basis points sequentially to 6.6%, and the net credit loss rate decreased by 50 basis points sequentially to 11.9%. The company generated $16.9 million in capital during the quarter, returning $17.6 million to shareholders through stock repurchases and dividends. Looking ahead, the company forecasts full-year net income for 2025 to be between $42 million and $45 million, with potential for faster growth in the second half of the year, contingent on customer health and macroeconomic conditions.

Regional Management Financial Statement Overview

Summary
Regional Management shows strong revenue growth and operational efficiency with a healthy gross profit margin. The absence of debt enhances balance sheet stability, although profitability margins and ROE could improve. Cash flow generation is robust, indicating sound financial health.
Income Statement
75
Positive
Regional Management has demonstrated strong revenue growth, with a notable increase in total revenue from $551 million in 2023 to $588 million in 2024. The gross profit margin is healthy, indicating efficient cost management with a margin of 95.61% in 2024. However, the net profit margin remains relatively modest at 6.91%, suggesting the potential for improved profitability. EBIT and EBITDA margins have improved significantly to 50.28% in 2024, showing strong operational efficiency.
Balance Sheet
70
Positive
The company exhibits a strong equity position with a stockholders' equity of $357 million in 2024, up from $322 million in 2023. The debt-to-equity ratio is favorable due to zero total debt, reflecting a low-risk profile. The equity ratio has improved to 18.71%, indicating a solid foundation. However, the return on equity (ROE) at 11.40% suggests there could be room for more efficient utilization of equity capital.
Cash Flow
80
Positive
Operating cash flow has increased to $269 million in 2024, supporting the company's operational strength. The free cash flow to net income ratio is robust, with free cash flow growing to $264 million. The operating cash flow to net income ratio is notably high at 6.61, indicating strong cash generation relative to net income. This reflects a solid cash management strategy, although consistent investment in capital expenditures should be monitored.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue558.00M588.50M551.40M472.96M397.00M336.05M
Gross Profit528.77M562.68M331.37M307.91M385.35M328.85M
EBITDA140.19M142.68M102.88M112.23M156.88M0.00
Net Income37.08M41.23M15.96M51.22M88.69M26.73M
Balance Sheet
Total Assets1.90B1.91B1.79B1.72B1.46B1.10B
Cash, Cash Equivalents and Short-Term Investments4.16M3.95M4.51M24.29M10.51M8.05M
Total Debt1.51B1.51B1.43B1.55B1.13B791.45M
Total Liabilities1.54B1.55B1.47B1.42B1.18B831.73M
Stockholders Equity357.88M357.08M322.27M308.63M282.74M272.12M
Cash Flow
Free Cash Flow268.79M263.87M237.10M212.92M182.15M166.78M
Operating Cash Flow274.12M268.93M249.17M224.33M189.01M172.58M
Investing Cash Flow-355.31M-315.37M-278.72M-447.29M-355.06M-98.81M
Financing Cash Flow85.25M53.41M26.43M205.57M243.36M-58.32M

Regional Management Technical Analysis

Technical Analysis Sentiment
Positive
Last Price43.80
Price Trends
50DMA
34.89
Positive
100DMA
31.75
Positive
200DMA
31.87
Positive
Market Momentum
MACD
2.73
Negative
RSI
77.60
Negative
STOCH
89.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RM, the sentiment is Positive. The current price of 43.8 is above the 20-day moving average (MA) of 39.40, above the 50-day MA of 34.89, and above the 200-day MA of 31.87, indicating a bullish trend. The MACD of 2.73 indicates Negative momentum. The RSI at 77.60 is Negative, neither overbought nor oversold. The STOCH value of 89.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RM.

Regional Management Risk Analysis

Regional Management disclosed 54 risk factors in its most recent earnings report. Regional Management 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

Regional Management Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$250.83M5.9411.25%4.31%15.88%-1.83%
76
Outperform
$500.29M2.8713.64%6.74%12.69%-35.36%
74
Outperform
$429.59M12.649.81%2.74%7.32%38.85%
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
62
Neutral
$172.68M9.086.66%16.13%-28.76%
56
Neutral
$297.06M-1.26%-5.87%94.07%
45
Neutral
$938.16M-79.90%510.69%-145.92%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RM
Regional Management
43.80
14.24
48.17%
CPSS
Consumer Portfolio Services
7.40
-1.60
-17.78%
MFIN
Medallion Financial
10.79
3.71
52.40%
YRD
Yiren Digital
5.79
1.57
37.20%
AHG
Akso Health Group Sponsored ADR
1.63
0.62
61.39%
OPRT
Oportun Financial
6.75
3.97
142.81%

Regional Management Corporate Events

Private Placements and Financing
Regional Management Secures New $355M Credit Facility
Positive
Aug 25, 2025

On August 19, 2025, Regional Management Corp. entered into a new Loan and Security Agreement with a syndicate of banks, including BMO Harris Financing, Inc., Banc of California, Texas Capital Bank, EverBank, N.A., and First Horizon Bank, with Bank of Montreal as the agent. This agreement introduces a senior revolving credit facility of up to $355 million, with potential expansion to $420 million, and replaces the previous agreement with Wells Fargo Bank, which was set to mature on September 20, 2025.

Business Operations and StrategyFinancial Disclosures
Regional Management Reports Strong Q2 2025 Results
Positive
Jul 30, 2025

Regional Management Corp. reported strong financial results for the second quarter of 2025, with a net income of $10.1 million and diluted earnings per share of $1.03, marking a 20% increase year-over-year. The company achieved record originations and revenue, improved credit performance, and maintained a healthy portfolio with a 10.5% growth. Strategic investments in new branches and innovation, along with a focus on auto-secured and small loan portfolios, have positioned the company for sustained growth and value creation.

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: Aug 26, 2025