Regional Management (RM) AI Stock Analysis

• Market Cap: $400.49M
• Dividend Yield: 3.04%
• Average Volume (3M): 36.46K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.97
• Revenue Growth: 9.63%
• EPS Growth: 77.14%
• Country: US
• Employees: 2,131
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.42
• Shares Outstanding: 9,799,066
• 10 Day Avg. Volume: 31,103
• 30 Day Avg. Volume: 36,460
• PEG Ratio: 0.05
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 1.24
• Enterprise Value/Market Cap: 4.75
• Enterprise Value/Revenue: 3.02
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 12.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.48
• Revenue Forecast (FY): $626.64M

• Rating: 74 Outperform
• Price Target: $46.00 ▲(15.46% Upside)

Regional Management's overall stock score is driven by strong financial performance and positive earnings call sentiment. The company's robust revenue growth, operational efficiency, and absence of debt contribute significantly to its financial health. While technical indicators suggest a stable outlook, the fair valuation and positive earnings call further support the stock's potential. The absence of notable corporate events does not detract from the positive assessment.

Positive Factors

Revenue Growth

Record revenue growth indicates strong demand for RM's financial products, enhancing its market position and supporting long-term expansion.

Balance Sheet Health

A debt-free balance sheet reduces financial risk and provides flexibility for strategic investments and growth initiatives.

Cash Generation Ability

Strong cash flow generation supports operational needs and strategic investments, ensuring financial resilience and growth potential.

Negative Factors

Incremental Provision Expense

Higher provision expenses could pressure profitability, indicating potential risks in credit quality and impacting long-term earnings.

CEO Transition

Leadership changes can lead to strategic shifts and uncertainty, potentially affecting company culture and long-term strategic direction.

Credit Losses

Rising credit losses suggest potential challenges in loan portfolio quality, which could impact future profitability and risk management.

Regional Management Business Overview & Revenue Model

Company Description

Regional Management (RM) is a financial services company that specializes in providing consumer and commercial loans primarily in the southeastern and southwestern United States. The company offers a range of financial products, including personal loans, auto loans, and retail financing solutions, catering to underserved markets and individuals who may have limited access to traditional banking services. RM operates through a network of branch locations and online platforms, focusing on customer service and flexible lending solutions.

How the Company Makes Money

Regional 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 Financial Statement Overview

Summary

Regional Management displays a strong financial position with impressive revenue growth and operational efficiency. The absence of debt in 2024 significantly enhances the balance sheet stability, although the company could further optimize equity returns. Cash flow generation remains robust, indicating sound financial health. While profitability margins can improve, the overall trajectory is positive with low financial risk.

Income Statement

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

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

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.

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	606.14M	562.68M	331.37M	307.91M	416.70M	366.71M
EBITDA	153.36M	142.68M	102.88M	112.23M	156.88M	87.09M
Net Income	42.74M	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	149.19M	71.88M
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	285.39M	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

• Technical Analysis Sentiment: Negative
• Last Price: 39.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RM, the sentiment is Negative. The current price of 39.84 is above the 20-day moving average (MA) of 39.47, below the 50-day MA of 40.87, and above the 200-day MA of 33.87, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 38.79 is Neutral, neither overbought nor oversold. The STOCH value of 41.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RM.

Regional Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	76 Outperform	$230.23M	5.79	10.79%	4.56%	15.52%	2.05%
YRD	75 Outperform	$453.63M	2.56	13.64%	8.30%	12.69%	-35.36%
RM	74 Outperform	$400.49M	9.90	11.43%	3.04%	9.63%	77.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RWAY	67 Neutral	$351.66M	5.09	14.31%	11.43%	1.85%	151.90%
OPRT	51 Neutral	$206.97M	7.19	8.59%	―	-5.29%	―
PRAA	46 Neutral	$529.64M	―	-31.97%	―	13.79%	-899.50%

Regional Management Corporate Events

Regional Management Corp. Reports Strong Q3 2025 Results

Regional Management Corp., a diversified consumer finance company, specializes in providing installment loan products to customers with limited access to traditional credit sources, operating across 19 states in the U.S. In the third quarter of 2025, Regional Management Corp. reported a significant increase in net income, reaching $14.4 million, an 87% rise from the previous year, with diluted earnings per share of $1.42. The company achieved record revenue of $165 million, driven by a 12.8% growth in its portfolio and a 23% increase in total originations. The company’s net credit loss rate improved to 10.2%, and it achieved an all-time best operating expense ratio of 12.8%. Additionally, the Board of Directors expanded the stock repurchase program authorization from $30 million to $60 million. Regional Management’s strategic focus on growth in its auto-secured portfolio, alongside disciplined credit management and technological investments, has contributed to its robust financial performance. Looking forward, the company plans to expand its branch network in Louisiana and California and enter new states in 2026, aiming to sustain its growth trajectory and deliver consistent shareholder value.

Regional Management Announces CEO Resignation and Successor

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.

The most recent analyst rating on (RM) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.

Regional Management Completes $252.8M Asset-Backed Securitization

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.

The most recent analyst rating on (RM) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.

Regional Management Schedules Investor Presentation for October 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.

The most recent analyst rating on (RM) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.

Regional Management Secures New $355M Credit Facility

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.

The most recent analyst rating on (RM) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.