Regional Management (RM)
NYSE:RM
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Regional Management
(NYSE:RM)
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Rating:70Outperform
Price Target:
$42.00
▲(7.36% Upside)
Action:UpgradedDate:04/30/26
The score is driven primarily by improving operating performance and strong cash generation, but held back by persistently high leverage that elevates downside risk in a credit downturn. Technicals add support via a clear uptrend and positive momentum, while valuation is favorable with a low P/E and solid dividend. Earnings-call guidance is constructive, tempered by near-term credit-loss and yield headwinds.
Positive Factors
Strong cash generation
Consistent operating and free cash flow growth (2025 FCF up ~9%) provides durable internal funding for branch expansion, buybacks and dividends and reduces reliance on external capital. Reliable cash conversion supports investments, cushions cyclical stress and underpins capital returns over the medium term.
Negative Factors
High leverage
Debt roughly 4–5x equity (2025 D/E ~4.65x) leaves the company structurally highly levered. Elevated leverage amplifies downside in a credit downturn, reduces financial flexibility for opportunistic investments, and raises refinancing and covenant risk despite solid cash generation and largely fixed-rate funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent operating and free cash flow growth (2025 FCF up ~9%) provides durable internal funding for branch expansion, buybacks and dividends and reduces reliance on external capital. Reliable cash conversion supports investments, cushions cyclical stress and underpins capital returns over the medium term.
Read all positive factors
Regional Management (RM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$359.38M
Dividend Yield2.99%
Average Volume (3M)57.85K
Price to Earnings (P/E)8.7
Beta (1Y)1.16
Revenue Growth9.70%
EPS Growth10.38%
CountryUS
Employees2,131
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.18
Shares Outstanding9,329,776
10 Day Avg. Volume72,226
30 Day Avg. Volume57,847
Financial Highlights & Ratios
PEG Ratio1.06
Price to Book (P/B)1.03
Price to Sales (P/S)0.60
P/FCF Ratio1.26
Enterprise Value/Market Cap5.56
Enterprise Value/Revenue3.10
Enterprise Value/Gross Profit5.91
Enterprise Value/Ebitda21.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)5.51
Revenue Forecast (FY)$684.77M
Regional Management Business Overview & Revenue Model
Company Description
Regional 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...
How the Company Makes Money
Regional Management generates revenue primarily through interest and fees charged on its consumer loan products. The company extends credit to individuals who may not qualify for traditional banking loans, leveraging its network of branch offices ...
Regional Management Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operating momentum: record revenue, double-digit portfolio and origination growth, marked improvement in expense efficiency, strong capital generation and shareholder returns, and improved credit metrics. Management acknowledged near-term headwinds from Q1 seasonality and an expected rise in net credit losses tied to tax-refund-driven behavior and portfolio mix, and noted execution risks around expansion and a developing bank partnership. On balance, the company emphasized disciplined growth, constructive guidance for 2026 (ENR +10%, net income +20%–25%), and confidence in long-term risk-adjusted returns.Positive Updates
Strong Quarter and EPS Beat
Q4 net income of $12.9 million and diluted EPS of $1.30, a 33% increase year-over-year, exceeding guidance despite a larger provision for credit losses tied to portfolio growth.
Negative Updates
Near-Term Seasonality and Tax-Refund Headwinds
Management expects typical Q1 seasonality exacerbated by larger tax refunds (OBBA), likely causing sequential contraction in ending net receivables (potentially larger than normal) and softer origination demand in Q1.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarter and EPS Beat
Q4 net income of $12.9 million and diluted EPS of $1.30, a 33% increase year-over-year, exceeding guidance despite a larger provision for credit losses tied to portfolio growth.
Read all positive updates
Company Guidance
Management guided full‑year 2026 to ending net receivables growth of at least 10% and net income growth of 20–25% year‑over‑year, while noting typical Q1 seasonality that should drive a sequential net credit loss increase of roughly 150 basis points and a possible sequential contraction in ending net receivables due to elevated tax refunds; longer term they target a portfolio NPL tolerance under 10%. Management pointed to strong 2025 results underpinning the outlook: Q4 net income was $12.9M ($1.30 diluted EPS, +33% YoY) and full‑year net income was $44.4M (+8% YoY), ending net receivables rose $248M (13% YoY) to a $2.1B loan portfolio, Q4 originations were $537M (+13% YoY) and full‑year originations $2.0B (+19% YoY), Q4 total revenue was a record $170M (+10% YoY) with total revenue yield at 32.5% and interest & fee yield at 29.3%, and Q4 interest expense was $22.6M (4.3% of average net receivables annualized). Credit and efficiency metrics the company highlighted include a 30+ day delinquency rate of 7.5% (improved 20 bps YoY), a Q4 annualized net credit loss rate improved 30 bps YoY (full‑year improvement 70 bps), an allowance for credit losses rate of 10.3% (up 20 bps YoY with a $8.9M quarter increase), an all‑time best annualized operating expense ratio of 12.4% in Q4 (13.1% for the year, down 70 bps YoY), capital generation of $74M in 2025 with $36M returned to shareholders, a Q1 dividend of $0.30 per share, and share repurchases of ~197k shares in Q4 (702k shares for the year).Regional Management Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
41
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 645.57M | 588.50M | 551.40M | 507.19M | 428.35M |
| Gross Profit | 337.93M | 301.77M | 263.90M | 287.85M | 307.99M |
| EBITDA | 92.08M | 68.14M | 35.42M | 78.01M | 124.13M |
| Net Income | 44.41M | 41.23M | 15.96M | 51.22M | 88.69M |
Balance Sheet | |||||
| Total Assets | 2.18B | 1.91B | 1.79B | 1.72B | 1.46B |
| Cash, Cash Equivalents and Short-Term Investments | 98.00M | 3.95M | 4.51M | 3.87M | 10.51M |
| Total Debt | 1.73B | 1.51B | 1.43B | 1.38B | 1.13B |
| Total Liabilities | 1.81B | 1.55B | 1.47B | 1.42B | 1.18B |
| Stockholders Equity | 373.09M | 357.08M | 322.27M | 308.63M | 282.74M |
Cash Flow | |||||
| Free Cash Flow | 304.31M | 263.87M | 237.10M | 212.92M | 182.15M |
| Operating Cash Flow | 309.07M | 268.93M | 249.17M | 224.33M | 189.01M |
| Investing Cash Flow | -471.18M | -315.37M | -278.72M | -447.29M | -355.06M |
| Financing Cash Flow | 124.47M | 53.41M | 26.43M | 205.57M | 243.36M |
Regional Management Technical Analysis
Positive
39.12
Price Trends
33.66
Positive
35.98
Positive
36.85
Positive
Market Momentum
1.60
Negative
80.15
Negative
95.59
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 34.59, above the 50-day MA of 33.66, and above the 200-day MA of 36.85, indicating a bullish trend. The MACD of 1.60 indicates Negative momentum. The RSI at 80.15 is Negative, neither overbought nor oversold. The STOCH value of 95.59 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $163.31M | -0.32 | 0.54% | 10.37% | -1.41% | -98.13% | |
71 Outperform | $217.89M | 5.44 | 11.82% | 4.44% | 16.77% | 18.81% | |
70 Outperform | $359.38M | 8.66 | 12.12% | 2.99% | 9.70% | 10.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $257.66M | 10.05 | 6.66% | ― | -4.50% | ― | |
59 Neutral | $276.02M | 11.12 | 6.89% | 15.96% | -1.08% | -51.56% | |
55 Neutral | $842.51M | -2.27 | -27.34% | ― | 9.78% | -535.60% |
* Financial Sector Average
RM
Regional Management
37.35
10.47
38.96%
MFIN
Medallion Financial
9.16
0.73
8.72%
PRAA
Pra Group
21.79
3.40
18.49%
YRD
Yiren Digital
1.93
-4.40
-69.51%
OPRT
Oportun Financial
6.09
0.97
18.95%
RWAY
Runway Growth Finance Corp
6.73
-1.12
-14.25%
Regional Management Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Regional Management Posts Strong Q1 Results, Raises Dividend
Positive
Apr 29, 2026
Regional Management Corp. reported strong first-quarter 2026 results on April 29, 2026, with net income of $11.4 million and diluted EPS of $1.18, representing year-over-year gains of about 63% and 69%, respectively, driven by portfolio growth and...
Business Operations and Strategy
Regional Management Launches New Consumer Lending Partnership Program
Positive
Mar 5, 2026
On March 2, 2026, Regional Management Corp. entered into a Program Management Agreement with Column National Association to launch a new consumer lending program in select states, under which Column will originate secured and unsecured installment...
Business Operations and Strategy
Regional Management Highlights Digital Growth and Expansion Strategy
Positive
Feb 20, 2026
Regional Management Corp., operating as Regional Finance, is a diversified consumer finance provider serving primarily underbanked and non-prime customers through 353 branches in 19 states and digital channels, with $2.1 billion in receivables as ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Regional Management posts record Q4 revenue and dividend
Positive
Feb 4, 2026
On February 4, 2026, Regional Management reported fourth-quarter 2025 net income of $12.9 million and record revenue of $169.7 million, fueled by 13.1% portfolio growth, a surge in auto-secured lending, and tight cost controls that delivered an al...
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.