Regional Management (RM) AI Stock Analysis

• Market Cap: $370.83M
• Dividend Yield: 2.99%
• Average Volume (3M): 57.85K
• Price to Earnings (P/E): 9.3
• 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: 9,712,805
• 10 Day Avg. Volume: 72,226
• 30 Day Avg. Volume: 57,847
• 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: 5.13
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• 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 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: Negative
• Last Price: 39.12
• 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 39.12 is below the 20-day moving average (MA) of 39.31, above the 50-day MA of 38.33, and above the 200-day MA of 34.93, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 23.59 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	79 Outperform	$233.96M	5.89	10.79%	4.44%	15.52%	2.05%
YRD	73 Outperform	$344.76M	2.00	12.53%	10.37%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RM	64 Neutral	$370.83M	9.26	11.43%	2.99%	9.63%	77.14%
OPRT	64 Neutral	$223.73M	7.70	8.59%	―	-5.29%	―
PRAA	61 Neutral	$642.58M	-1.87	-31.97%	―	13.89%	-899.50%
RWAY	61 Neutral	$340.38M	6.38	11.02%	15.96%	6.38%	41.48%

Regional Management Corporate Events

Regional Management Schedules Investor Presentation on Growth

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.

The most recent analyst rating on (RM) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Regional Management stock, see the RM Stock Forecast page.

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.