Regional Management (RM) AI Stock Analysis

• Market Cap: $431.84M
• Dividend Yield: 2.76%
• Average Volume (3M): 53.35K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.88
• Revenue Growth: 7.32%
• EPS Growth: 38.85%
• Country: US
• Employees: 2,131
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.03
• Shares Outstanding: 9,799,066
• 10 Day Avg. Volume: 51,893
• 30 Day Avg. Volume: 53,353
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.97
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 12.22
• 1Y Price Target: $45.00
• Price Target Upside: 5.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $45.00 ▲(5.56% Upside)

Regional Management's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The stock's bullish technical indicators are tempered by overbought signals, and while valuation is attractive, rising interest expenses present a risk.

Positive Factors

Revenue Growth

The record revenue growth indicates strong demand for RM's financial products, showcasing effective market penetration and customer acquisition strategies.

Credit Facility Expansion

The expanded credit facility enhances RM's financial flexibility, supporting growth initiatives and enabling the company to capitalize on market opportunities.

Improved Credit Performance

Improved credit performance reflects effective risk management, reducing potential losses and enhancing the company's financial stability.

Negative Factors

Rising Interest Expenses

Rising interest expenses could pressure margins, impacting profitability and limiting the company's ability to reinvest in growth initiatives.

Restructuring Charges

Restructuring charges indicate potential operational inefficiencies, which might lead to increased costs and affect long-term profitability.

Modest Net Profit Margin

A modest net profit margin suggests limited profitability, which could hinder the company's ability to invest in future growth and innovation.

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 shows strong revenue growth and operational efficiency with a healthy gross profit margin. The absence of debt enhances balance sheet stability, although profitability margins and ROE could improve. Cash flow generation is robust, indicating sound financial health.

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	558.00M	588.50M	551.40M	472.96M	397.00M	336.05M
Gross Profit	528.77M	562.68M	331.37M	307.91M	385.35M	328.85M
EBITDA	140.19M	142.68M	102.88M	112.23M	156.88M	0.00
Net Income	37.08M	41.23M	15.96M	51.22M	88.69M	26.73M
Balance Sheet
Total Assets	1.90B	1.91B	1.79B	1.72B	1.46B	1.10B
Cash, Cash Equivalents and Short-Term Investments	4.16M	3.95M	4.51M	24.29M	10.51M	8.05M
Total Debt	1.51B	1.51B	1.43B	1.55B	1.13B	791.45M
Total Liabilities	1.54B	1.55B	1.47B	1.42B	1.18B	831.73M
Stockholders Equity	357.88M	357.08M	322.27M	308.63M	282.74M	272.12M
Cash Flow
Free Cash Flow	268.79M	263.87M	237.10M	212.92M	182.15M	166.78M
Operating Cash Flow	274.12M	268.93M	249.17M	224.33M	189.01M	172.58M
Investing Cash Flow	-355.31M	-315.37M	-278.72M	-447.29M	-355.06M	-98.81M
Financing Cash Flow	85.25M	53.41M	26.43M	205.57M	243.36M	-58.32M

Regional Management Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.63
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 42.63 is below the 20-day moving average (MA) of 43.38, above the 50-day MA of 38.28, and above the 200-day MA of 32.83, indicating a neutral trend. The MACD of 1.48 indicates Positive momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 34.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RM.

Regional Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	77 Outperform	246.65M	6.02	10.73%	4.24%	15.88%	-1.83%
YRD	76 Outperform	514.12M	2.91	16.58%	6.55%	12.69%	-35.36%
RM	74 Outperform	$431.84M	12.71	9.81%	2.76%	7.32%	38.85%
CPSS	62 Neutral	179.13M	10.05	6.41%	―	16.13%	-28.76%
OPRT	56 Neutral	286.06M	-32.73	-22.24%	―	-5.87%	94.07%
AHG	45 Neutral	938.72M	-3.60	―	―	510.69%	-145.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Regional Management Corporate Events

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.

Regional Management Reports Strong Q2 2025 Results

Regional Management Corp. reported strong financial results for the second quarter of 2025, with a net income of $10.1 million and diluted earnings per share of $1.03, marking a 20% increase year-over-year. The company achieved record originations and revenue, improved credit performance, and maintained a healthy portfolio with a 10.5% growth. Strategic investments in new branches and innovation, along with a focus on auto-secured and small loan portfolios, have positioned the company for sustained growth and value creation.