Regional Management (RM) AI Stock Analysis

• Market Cap: $379.96M
• Dividend Yield: 3.07%
• Average Volume (3M): 45.79K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.02
• 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: 9,712,805
• 10 Day Avg. Volume: 59,879
• 30 Day Avg. Volume: 45,788
• 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: 5.01
• Enterprise Value/Revenue: 3.02
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 27.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.44
• Revenue Forecast (FY): $627.58M

• Rating: 67 Neutral
• Price Target: $40.00 ▲(2.25% Upside)

Regional Management's overall score is driven by strong earnings call results and attractive valuation. Financial performance is solid but impacted by high leverage. Technical analysis suggests caution with mixed signals.

Positive Factors

Record Revenue and Growth

Achieving record revenue indicates strong demand and effective business strategies, supporting long-term growth and market presence.

Improved Credit Performance

Improved credit performance reduces risk and enhances financial stability, contributing to sustainable profitability.

Successful Branch Expansion

Branch expansion increases market reach and customer base, driving revenue growth and strengthening competitive position.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial health and stability.

Incremental Provision Expense

Higher provision expenses can pressure net income, affecting profitability and indicating potential credit risk concerns.

Slight Profitability Pressure

Decreasing profit margins suggest challenges in cost management or pricing power, which may affect long-term profitability.

Regional Management Business Overview & Revenue Model

Company Description

Regional 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 Money

Regional 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 39.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 37.69, above the 50-day MA of 39.05, and above the 200-day MA of 33.74, indicating a bullish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 55.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$232.10M	5.84	10.79%	4.71%	15.52%	2.05%
YRD	70 Outperform	$381.05M	2.21	12.53%	9.52%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RM	67 Neutral	$379.96M	9.48	11.43%	3.07%	9.63%	77.14%
RWAY	67 Neutral	$330.63M	6.19	11.02%	15.30%	6.38%	41.48%
OPRT	62 Neutral	$224.62M	7.73	8.59%	―	-5.29%	―
PRAA	61 Neutral	$635.17M	―	-31.97%	―	13.89%	-899.50%

Regional Management Corporate Events

Regional Management Corp. Reports Record Earnings and Growth

The recent earnings call for Regional Management Corp. was marked by a strong positive sentiment, highlighting the company’s impressive financial performance. The call underscored record-breaking revenue and growth metrics, improved credit performance, and successful branch expansion. While challenges such as incremental provision expenses and caution due to the government shutdown were acknowledged, the overall tone remained optimistic, with positive aspects significantly outweighing the negatives.

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.