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Regional Management
(NYSE:RM)
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Rating:63Neutral
Price Target:
$34.00
▼(-18.37% Downside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by improving fundamentals and strong cash flow, but it is held back by high balance-sheet leverage and a weak technical trend (price below major moving averages). Valuation is a clear positive with a low P/E and ~3.7% dividend yield, while the latest earnings call added a cautious tilt due to a guidance reset and still-elevated credit metrics despite expectations for back-half improvement.
Positive Factors
Strong free cash flow generation
Consistently positive and rising operating and free cash flow (TTM FCF up ~255% and ~0.97x net income) creates durable internal funding for growth, dividends and buybacks. Strong cash conversion reduces reliance on external funding and supports refinancing or deleveraging over time.
Negative Factors
High leverage on balance sheet
Very high leverage (debt-to-equity ~4.5x) constrains financial flexibility, raises refinancing and covenant risk, and amplifies earnings volatility. In adverse credit or funding scenarios the company has limited cushion to absorb losses without slowing growth or raising expensive capital, a persistent structural risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistently positive and rising operating and free cash flow (TTM FCF up ~255% and ~0.97x net income) creates durable internal funding for growth, dividends and buybacks. Strong cash conversion reduces reliance on external funding and supports refinancing or deleveraging over time.
Read all positive factors
Regional Management (RM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$297.15M
Dividend Yield3.72%
Average Volume (3M)57.85K
Price to Earnings (P/E)6.5
Beta (1Y)1.16
Revenue Growth9.63%
EPS Growth40.75%
CountryUS
Employees2,112
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)4.98
Shares Outstanding9,208,145
10 Day Avg. Volume72,226
30 Day Avg. Volume57,847
Financial Highlights & Ratios
PEG Ratio1.02
Price to Book (P/B)1.03
Price to Sales (P/S)0.60
P/FCF Ratio1.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$46.50Price Target Upside11.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.6
Revenue Forecast (FY)$681.91M
Regional Management Business Overview & Revenue Model
Company Description
Regional Management Corp. (RMC) functions as a broad-based financial services provider, concentrating on offering consumer installment loans. Its primary focus is on serving individuals across the United States who face challenges in securing cred...
Regional Management Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but measured picture: solid revenue and portfolio growth, improving operating efficiency, strong early results from the bank partnership, and important technology and digital initiatives that position the company for future returns. Offsetting these positives were near-term headwinds — originations below expectations, elevated credit metrics (net credit loss rate above forecasts and rising delinquencies), competitive pressure on new-borrower acquisition, and a cautious reset of full-year guidance. Management emphasized disciplined, long-term value creation and expects initiatives to drive stronger results in the back half of 2026 and materially in 2027.Positive Updates
Quarterly Profitability
Net income of $8.2 million and diluted EPS of $0.85 for Q2; year-to-date net income and diluted EPS up 14% and 17%, respectively, versus prior-year first half.
Negative Updates
Originations Miss and Small Loan Weakness
Total originations of $504 million were down 1.3% year-over-year; small loan volumes declined while large loan originations grew >10%, reflecting competitive pressure in new-borrower acquisition and deliberate tightening in higher-risk segments.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Profitability
Net income of $8.2 million and diluted EPS of $0.85 for Q2; year-to-date net income and diluted EPS up 14% and 17%, respectively, versus prior-year first half.
Read all positive updates
Company Guidance
The company revised full-year guidance to diluted EPS growth of 10%–13% and portfolio (ending net finance receivables) growth of 5%–7%, with net income growth of 6%–9% and an expectation that Q3 and Q4 net income will be meaningfully higher than Q2 (Q4 > Q3 > Q2); Q2 results included net income $8.2M and diluted EPS $0.85, ENR $2.1B (up 9.6% YoY), total revenue $168M, total originations $504M, 30+ day delinquency 7.0%, net credit loss rate 12.2%, and allowance rate 10.4%. Management expects net credit losses to improve in Q3/Q4, will increase provision for credit losses to reserve for growth at Q2-like levels, and sees the allowance rate holding roughly flat next quarter; operating expense ratio (annualized) was 12.4% in Q2 (improved 80 bps YoY) but is expected to tick up sequentially in Q3 partly due to immediate G&A recognition under the bank partnership model. The bank partnership already has >$65M of originations (run rate ~28% of originations), is projected to yield at least a 200 bps pre-tax margin lift versus state-licensed loans, and management expects nearly all states to operate under the partnership by end of 2027; funding costs are expected to rise to ~4.5% in Q3, with $442M unused capacity and $128M available liquidity on the balance sheet.Regional Management Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
46
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 670.46M | 645.57M | 588.50M | 551.40M | 507.19M | 428.35M |
| Gross Profit | 504.81M | 337.93M | 301.77M | 263.90M | 287.85M | 307.99M |
| EBITDA | 142.54M | 92.08M | 68.14M | 35.42M | 78.01M | 124.13M |
| Net Income | 49.64M | 44.41M | 41.23M | 15.96M | 51.22M | 88.69M |
Balance Sheet | ||||||
| Total Assets | 2.13B | 2.18B | 1.91B | 1.79B | 1.72B | 1.46B |
| Cash, Cash Equivalents and Short-Term Investments | 6.80M | 98.00M | 3.95M | 4.51M | 3.87M | 10.51M |
| Total Debt | 1.72B | 1.73B | 1.51B | 1.43B | 1.38B | 1.13B |
| Total Liabilities | 1.75B | 1.81B | 1.55B | 1.47B | 1.42B | 1.18B |
| Stockholders Equity | 378.33M | 373.09M | 357.08M | 322.27M | 308.63M | 282.74M |
Cash Flow | ||||||
| Free Cash Flow | 317.45M | 291.99M | 263.87M | 237.10M | 212.92M | 182.15M |
| Operating Cash Flow | 328.51M | 309.07M | 268.93M | 249.17M | 224.33M | 189.01M |
| Investing Cash Flow | -450.92M | -471.18M | -315.37M | -278.72M | -447.29M | -355.06M |
| Financing Cash Flow | 119.06M | 124.47M | 53.41M | 26.43M | 205.57M | 243.36M |
Regional Management Technical Analysis
Negative
41.65
Price Trends
38.93
Negative
36.74
Negative
36.73
Negative
Market Momentum
0.94
Positive
54.46
Neutral
27.22
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 41.65 is above the 20-day moving average (MA) of 41.20, above the 50-day MA of 38.93, and above the 200-day MA of 36.73, indicating a bearish trend. The MACD of 0.94 indicates Positive momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 27.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RM.
Regional Management Risk Analysis
Regional Management disclosed 55 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $229.74M | 7.10 | 8.86% | 5.12% | 5.42% | -24.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $231.86M | -60.67 | -0.55% | 25.21% | -9.59% | -105.13% | |
63 Neutral | $297.15M | 6.48 | 13.24% | 2.88% | 9.63% | 40.75% | |
61 Neutral | $254.30M | 14.58 | 4.63% | ― | -3.81% | ― | |
54 Neutral | $96.95M | -0.32 | -7.18% | 37.29% | -13.83% | -154.13% | |
48 Neutral | $662.51M | -2.43 | -26.42% | ― | 12.38% | -498.81% |
* Financial Sector Average
RM
Regional Management
32.27
-0.48
-1.47%
MFIN
Medallion Financial
9.94
-0.25
-2.42%
PRAA
Pra Group
17.37
1.74
11.13%
YRD
Yiren Digital
1.11
-4.50
-80.20%
OPRT
Oportun Financial
5.54
-0.58
-9.48%
RWAY
Runway Growth Finance Corp
5.46
-3.58
-39.58%
Regional Management Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Regional Management reports Q2 results and strategic expansion
Positive
Jul 29, 2026
Regional Management Corp. reported second-quarter 2026 net income of $8.2 million and diluted EPS of $0.85, down roughly 19% and 18% year-over-year, even as year-to-date net income and EPS rose 14% and 17%, respectively. Revenue for the quarter gr...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Regional Management Expands Long-Term Incentive Plan, Reelects Board
Positive
May 19, 2026
On May 13, 2026, Regional Management’s board compensation committee approved new long-term incentive awards for its named executive officers under the 2024 Long-Term Incentive Plan, granting performance restricted stock units and time-based ...
Business Operations and StrategyPrivate Placements and Financing
Regional Management Amends and Extends Key Credit Facilities
Neutral
May 4, 2026
On April 28, 2026, Regional Management Corp. executed a series of amendments to its senior revolving credit facility and four warehouse credit agreements, primarily to update definitions tied to receivables pledged from a bank partner and to add a...
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.