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Regional Managment (RM)
NYSE:RM
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Regional Management
(NYSE:RM)
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Rating:64Neutral
Price Target:
$39.00
▼(-0.31% Downside)
Regional Management's overall stock score reflects steady financial performance and strong earnings call results. However, technical indicators suggest a bearish trend, and high leverage remains a concern. The stock's valuation and recent corporate events provide positive aspects, contributing to a balanced outlook.
Positive Factors
Revenue Growth
Achieving record revenue and surpassing $2 billion in net receivables indicates strong market demand and effective growth strategies, supporting long-term business expansion.
Branch Expansion
Expanding branch network enhances market reach and customer accessibility, driving future growth and strengthening competitive positioning in key regions.
Asset-Backed Securitization
The securitization improves balance sheet strength and manages interest rate risk, enhancing financial stability and supporting long-term strategic initiatives.
Negative Factors
High Leverage
High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and weather economic downturns.
Profit Margin Pressure
Decreasing profit margins suggest challenges in maintaining cost efficiency, which could affect long-term profitability and competitive advantage.
Incremental Provision Expense
Higher provision expenses due to growth can impact net income, indicating potential challenges in managing credit risk and maintaining profitability.
Regional Management (RM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$389.97M
Dividend Yield2.99%
Average Volume (3M)57.85K
Price to Earnings (P/E)9.7
Beta (1Y)0.98
Revenue Growth9.63%
EPS Growth77.14%
CountryUS
Employees2,131
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.42
Shares Outstanding9,712,805
10 Day Avg. Volume72,226
30 Day Avg. Volume57,847
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.92
Price to Sales (P/S)0.56
P/FCF Ratio1.24
Enterprise Value/Market Cap4.88
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit6.10
Enterprise Value/Ebitda27.31
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.44
Revenue Forecast (FY)$627.58M
Regional Management Business Overview & Revenue Model
Company DescriptionRegional Management (RM) is a financial services company that specializes in providing a range of consumer finance solutions. Operating primarily in the southeastern and southwestern United States, RM offers personal loans, retail installment contracts, and other credit-related products to individuals who may have limited access to traditional banking services. The company serves both the near-prime and subprime markets, focusing on delivering accessible and flexible financial options to its customers.
How the Company Makes MoneyRegional Management generates revenue primarily through the interest and fees associated with the loans it provides to consumers. The company earns interest income from personal loans and retail installment contracts, which typically have higher interest rates than traditional bank loans due to the risk associated with lending to near-prime and subprime borrowers. Additionally, RM collects late fees and other ancillary charges, contributing to its revenue. Significant partnerships with retail establishments allow RM to offer point-of-sale financing, creating additional revenue streams through retail loan agreements. The company's strategic focus on expanding its branch network and enhancing its online lending capabilities also plays a critical role in driving growth and profitability.
Regional Management Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The earnings call presented strong financial performance with record-breaking revenue and growth metrics, improved credit performance, and successful branch expansion. While there were some challenges such as incremental provision expenses and caution due to the government shutdown, the positive aspects significantly outweighed the negatives.Q3-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
The company delivered net income of $14.4 million and diluted earnings per share of $1.42, an improvement of 87% year-over-year. Total revenue reached a record high of $165 million, with net receivables surpassing $2 billion for the first time.
Strong Portfolio Growth
The portfolio grew by $233 million or 13% year-over-year. Total originations in the third quarter reached a record high, up 23% from the prior year period.
Improved Credit Performance
Net credit loss rate of 10.2% improved 170 basis points sequentially and 40 basis points year-over-year. Delinquency rate showed a 30 basis point improvement after adjusting for prior hurricane impacts.
Successful Branch Expansion
16 new branches opened since the third quarter of last year. Plans to open 5 new branches by year-end and 5 to 10 in the first half of 2026 in Louisiana and California.
Increased Shareholder Returns
Capital generation of $26 million in the third quarter, with $26 million returned to shareholders through stock repurchases and dividends. Stock repurchase program increased from $30 million to $60 million.
Negative Updates
Incremental Provision Expense
Additional provision expense of $3.6 million was recognized due to the extra $35 million in growth, impacting net income.
Slight Increase in Delinquency Rate
30-plus day delinquency rate increased by 10 basis points year-over-year, though improved when adjusted for prior year hurricane impacts.
Impact of Government Shutdown
Cautious approach due to the ongoing government shutdown, with reduced direct mail in regions with high government employee concentrations.
Company Guidance
In the third quarter of 2025, Regional Management Corp. reported robust financial results, with net income reaching $14.4 million and diluted earnings per share of $1.42, marking an 87% year-over-year improvement. The company achieved record-high total revenue of $165 million, driven by a $93 million sequential increase in their portfolio, surpassing $2 billion in net receivables for the first time. Total originations also hit a record high, up 23% from the previous year, contributing to a 13% year-over-year growth in the portfolio, which exceeded expectations by $35 million. Despite recognizing an incremental provision expense of $3.6 million due to this growth, effective management kept net income aligned with guidance. Credit performance showed improvement with a net credit loss rate of 10.2%, down 170 basis points sequentially, and the 30-plus day delinquency rate was 7%. The operating expense ratio improved to an all-time best of 12.8%, while capital generation amounted to $26 million for the quarter and $53 million year-to-date. The company projects full-year 2025 net income of $43.5 million, driven by macroeconomic conditions and fourth-quarter portfolio growth. Regional Management plans to expand with new branch openings and increase stock repurchases, supported by a healthy balance sheet and enhanced data and analytics capabilities.Regional Management Financial Statement Overview
Summary
Regional Management shows moderate growth and profitability with strong cash flow metrics. However, high leverage and slight profitability pressure are concerns. The income statement indicates steady revenue growth, but the balance sheet's high debt-to-equity ratio poses a risk.Income Statement
Regional Management's income statement shows moderate growth and profitability. The TTM revenue growth rate of 3.13% indicates steady expansion, though slower than previous years. Gross profit margin remains strong at 87.45%, but net profit margin has slightly decreased to 6.34%, reflecting some pressure on profitability. The EBIT margin of 14.51% and EBITDA margin of 23.79% suggest reasonable operational efficiency, though both have declined compared to historical performance.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 4.26, indicating significant leverage, which poses a risk in terms of financial stability. Return on equity is moderate at 10.84%, showing decent profitability relative to equity. The equity ratio stands at 18.33%, suggesting a lower proportion of equity financing, which may limit financial flexibility.55
Neutral
Cash Flow
Cash flow analysis shows positive trends, with a free cash flow growth rate of 3.38% in the TTM period. The operating cash flow to net income ratio of 1.26 indicates strong cash generation relative to net income. The free cash flow to net income ratio is high at 98.15%, reflecting efficient cash conversion and robust cash flow management.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 630.73M | 588.50M | 551.40M | 507.19M | 428.35M | 373.91M |
| Gross Profit | 312.08M | 301.77M | 263.90M | 287.85M | 307.99M | 212.24M |
| EBITDA | 69.70M | 68.14M | 35.42M | 78.01M | 124.13M | 49.24M |
| Net Income | 41.42M | 41.23M | 15.96M | 51.22M | 88.69M | 26.73M |
Balance Sheet | ||||||
| Total Assets | 2.03B | 1.91B | 1.79B | 1.72B | 1.46B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 4.08M | 3.95M | 4.51M | 3.87M | 10.51M | 8.05M |
| Total Debt | 1.62B | 1.51B | 1.43B | 1.38B | 1.13B | 791.45M |
| Total Liabilities | 1.66B | 1.55B | 1.47B | 1.42B | 1.18B | 831.73M |
| Stockholders Equity | 371.92M | 357.08M | 322.27M | 308.63M | 282.74M | 272.12M |
Cash Flow | ||||||
| Free Cash Flow | 279.26M | 263.87M | 237.10M | 212.92M | 182.15M | 166.78M |
| Operating Cash Flow | 292.85M | 268.93M | 249.17M | 224.33M | 189.01M | 172.58M |
| Investing Cash Flow | -446.99M | -315.37M | -278.72M | -447.29M | -355.06M | -98.81M |
| Financing Cash Flow | 142.36M | 53.41M | 26.43M | 205.57M | 243.36M | -58.32M |
Regional Management Technical Analysis
Positive
39.12
Price Trends
38.39
Positive
39.05
Positive
34.22
Positive
Market Momentum
0.57
Negative
59.14
Neutral
90.97
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 39.12 is above the 20-day moving average (MA) of 38.32, above the 50-day MA of 38.39, and above the 200-day MA of 34.22, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 59.14 is Neutral, neither overbought nor oversold. The STOCH value of 90.97 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $245.13M | 6.19 | 10.79% | 4.44% | 15.52% | 2.05% | |
70 Outperform | $362.04M | 2.03 | 12.53% | 10.02% | 10.48% | -30.67% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $317.26M | 5.94 | 11.02% | 15.96% | 6.38% | 41.48% | |
64 Neutral | $389.97M | 9.74 | 11.43% | 2.99% | 9.63% | 77.14% | |
64 Neutral | $240.94M | 8.31 | 8.59% | ― | -5.29% | ― | |
61 Neutral | $683.55M | -1.97 | -31.97% | ― | 13.89% | -899.50% |
* Financial Sector Average
RM
Regional Management
40.19
7.98
24.77%
MFIN
Medallion Financial
10.57
1.45
15.90%
PRAA
Pra Group
17.37
-3.28
-15.88%
YRD
Yiren Digital
4.05
-0.46
-10.20%
OPRT
Oportun Financial
5.47
1.47
36.75%
RWAY
Runway Growth Finance Corp
8.77
-0.95
-9.77%
Regional Management Corporate Events
Business Operations and Strategy
Regional Management Schedules Investor Presentation on Growth
Positive
Nov 17, 2025
Regional Management Corp. announced an investor presentation scheduled for November 18, 2025, highlighting its growth strategy and market positioning. The company has expanded its addressable market by over 80% since 2020, capturing a 2% share of a $95 billion market opportunity. Regional Management’s focus on customer satisfaction is evident with a net promoter score of 61 and a high percentage of repeat customers. The company continues to invest in digital channels and remote servicing options to enhance the customer experience. The presentation also outlines the company’s barbell strategy, emphasizing growth in both auto-secured loans and higher-margin small loans, aiming to balance risk and profitability.
Executive/Board ChangesStock BuybackDividendsFinancial Disclosures
Regional Management Announces CEO Resignation and Successor
Positive
Nov 5, 2025
On October 30, 2025, Regional Management Corp. announced the resignation of Robert W. Beck as President and CEO, effective November 10, 2025, and the appointment of Lakhbir S. Lamba as his successor. Mr. Lamba brings over 25 years of experience in financial services, particularly in consumer lending and analytics. The company also reported strong third-quarter results, with a net income of $14.4 million and a record revenue of $165 million, driven by significant growth in net finance receivables and a reduction in the net credit loss rate. The Board approved a $30 million increase in the stock repurchase program and declared a quarterly cash dividend, reflecting confidence in the company’s financial health and growth strategy.
Private Placements and FinancingBusiness Operations and Strategy
Regional Management Completes $252.8M Asset-Backed Securitization
Positive
Oct 29, 2025
On October 23, 2025, Regional Management Corp. completed a $252.8 million asset-backed securitization through the issuance of four classes of fixed-rate notes, backed by a pool of consumer loans. This transaction, which received investment-grade ratings, highlights the company’s robust funding platform and strengthens its balance sheet by converting a significant portion of its debt to fixed-rate, thereby managing interest rate risk effectively. The proceeds were used to pay down existing debt and fully redeem notes from a previous securitization, demonstrating Regional Management’s strategic focus on disciplined portfolio expansion and value creation for shareholders.
Private Placements and FinancingBusiness Operations and Strategy
Regional Management Schedules Investor Presentation for October 2025
Neutral
Oct 7, 2025
Regional Management Corp. announced an investor presentation scheduled for October 7, 2025, which will be used in meetings with bankers and investors. The presentation outlines the issuance of Series 2025-2 Class A, B, C, and D Notes by the Regional Management Issuance Trust 2025-2. The company highlights various factors that could impact its operations, including economic conditions, regulatory changes, and technological advancements. The announcement underscores the company’s strategic growth initiatives and potential challenges, providing stakeholders with insights into its future plans and market positioning.
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.