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World Acceptance Corp (WRLD)
NASDAQ:WRLD
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World Acceptance (WRLD) AI Stock Analysis

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WRLD

World Acceptance

(NASDAQ:WRLD)

Rating:63Neutral
Price Target:
$165.00
▲(6.58%Upside)
World Acceptance Corporation has a stable financial foundation with strong cash flow generation, which is crucial given its high leverage. The earnings call provided positive guidance and highlighted strategic achievements. However, technical indicators suggest mixed momentum, and while valuation appears favorable, the absence of a dividend yield limits income appeal. The overall score reflects these balanced strengths and risks.

World Acceptance (WRLD) vs. SPDR S&P 500 ETF (SPY)

World Acceptance Business Overview & Revenue Model

Company DescriptionWorld Acceptance Corporation, together with its subsidiaries, engages in small-loan consumer finance business. The company offers short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It also provides automobile club memberships to its borrowers; and income tax return preparation and electronic filing services. In addition, the company markets and sells credit life, credit accident and health, credit property and auto, unemployment, and accidental death and dismemberment insurance in connection with its loans. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. As of March 31, 2022, it operated 1,167 branches in Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Tennessee, Texas, Utah, and Wisconsin. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.
How the Company Makes MoneyWorld Acceptance Corporation makes money primarily through the interest and fees charged on the personal loans it provides to consumers. The company offers unsecured and secured loans, with unsecured loans representing the majority of its portfolio. Revenue is generated from the interest income on these loans and various fees, such as origination and late fees. Additionally, World Acceptance sells credit insurance products, which provide another stream of income. The company's earnings are significantly influenced by its ability to manage credit risk, maintain high customer retention, and expand its customer base through its branch network. Partnerships with insurance companies for credit insurance products also contribute to its revenue model.

World Acceptance Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q1-2026)
|
% Change Since: -9.62%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including a new credit agreement, strong loan growth, and improved credit performance. However, it also acknowledged the seasonal nature of earnings and existing high-yield notes. Overall, the sentiment leans positive due to the outweighing highlights.
Q1-2026 Updates
Positive Updates
New Credit Agreement
World Acceptance Corporation completed a new credit agreement, increasing commitments to $640 million, allowing for stock repurchases of up to 100% of net income (an increase from 50% in the prior agreement) and a $100 million upfront repurchase allowance.
Strong Loan Growth
The company reported a 10% increase in refinance volume and a 12.6% increase in new originations compared to last year's first quarter, the highest volume of new originations since fiscal year 2020.
Customer Base Expansion
The customer base increased by 4% compared to the first quarter of last year, marking the first positive growth in three years and returning to the largest customer base since the first quarter of 2023.
Improved Credit Performance
Stable first pay default rates and improving delinquency, with gross yields increasing over 230 basis points year-over-year.
EPS Growth and Share Repurchase Plans
The company plans to redeem remaining bonds by the end of August, allowing for more accelerated stock repurchases with a capacity of over $200 million for share repurchases over the next 12 months.
Negative Updates
Seasonal Earnings Fluctuations
Net income is historically low in the first quarter, averaging only 5.6% of total annual net income over the prior 3 years, with a peak of 12% of annual net income.
Outstanding High-Yield Notes
The company currently has around $170 million outstanding in high-yield notes issued in 2021, which are expected to be redeemed by the end of August.
Company Guidance
During the first quarter of fiscal year 2026, World Acceptance Corporation provided significant guidance on its financial and operational strategies. The company announced a new credit agreement increasing commitments to $640 million, alongside the ability to repurchase up to 100% of net income, up from 50% previously, starting January 1, 2025, with a $100 million upfront repurchase allowance. The net income since January 1, 2025, stands at approximately $45 million. Additionally, the company is redeeming the remaining $170 million of the $300 million high-yield notes issued in 2021, which will increase its capacity for stock repurchases to over $200 million over the next 12 months, equating to approximately 23% to 25% of outstanding shares. The first quarter saw a 10% increase in refinance volume and a 12.6% rise in new originations compared to the previous year, marking the highest volume since fiscal 2020. The customer base grew by 4% year-over-year, reflecting the first positive first-quarter growth in three years. Moreover, gross yields improved by over 230 basis points year-over-year, contributing to expectations of moderate growth, improving yields, and increased shareholder value through strong EPS growth.

World Acceptance Financial Statement Overview

Summary
World Acceptance shows a stable financial position with strong cash flow generation. However, challenges with high leverage and inconsistent profitability may pose risks if not managed carefully. The ability to maintain strong cash flows is a key strength, providing a buffer against financial volatility.
Income Statement
65
Positive
World Acceptance shows a mixed performance over the years with fluctuating revenue and net income figures. The gross profit margin is strong, demonstrating good cost control relative to revenue, but the net profit margin has shown volatility, reflecting challenges in maintaining consistent profitability.
Balance Sheet
55
Neutral
The company's balance sheet indicates a high debt-to-equity ratio, suggesting significant leverage and potential financial risk. However, there is a stable equity ratio, indicating that a reasonable proportion of assets is financed by equity, which helps mitigate some risk.
Cash Flow
70
Positive
The cash flow statements reveal a robust operating cash flow, consistently exceeding net income, which is a positive indicator of cash generation capabilities. Free cash flow has been stable, reflecting sound cash management and the ability to fund operations and investments without relying heavily on external financing.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue564.84M573.21M616.56M585.64M527.99M
Gross Profit395.63M416.03M306.62M365.56M416.05M
EBITDA164.97M110.30M38.06M77.25M123.82M
Net Income89.74M77.34M21.23M53.92M88.28M
Balance Sheet
Total Assets1.01B1.06B1.12B1.22B954.27M
Cash, Cash Equivalents and Short-Term Investments9.73M11.84M16.51M19.24M15.75M
Total Debt525.56M577.95M679.00M779.85M496.73M
Total Liabilities568.15M631.92M732.09M845.27M549.34M
Stockholders Equity439.48M424.43M385.23M373.02M404.93M
Cash Flow
Free Cash Flow250.48M259.85M285.73M266.38M215.27M
Operating Cash Flow254.16M265.78M291.55M272.45M226.95M
Investing Cash Flow-152.75M-135.14M-180.58M-451.89M-82.00M
Financing Cash Flow-103.52M-135.31M-113.70M182.93M-140.83M

World Acceptance Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price154.82
Price Trends
50DMA
159.67
Negative
100DMA
143.40
Positive
200DMA
133.34
Positive
Market Momentum
MACD
1.11
Positive
RSI
40.74
Neutral
STOCH
38.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRLD, the sentiment is Neutral. The current price of 154.82 is below the 20-day moving average (MA) of 168.62, below the 50-day MA of 159.67, and above the 200-day MA of 133.34, indicating a neutral trend. The MACD of 1.11 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 38.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WRLD.

World Acceptance Risk Analysis

World Acceptance disclosed 46 risk factors in its most recent earnings report. World Acceptance 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 3 New Risks
1.
Broad stock market fluctuations-driven by economic, geopolitical, or investor sentiment factors-may materially impact the trading price of the Company's common stock, regardless of Company performance. Q1, 2025
2.
Future issuance of additional common stock-whether for acquisitions, capital raises, or other purposes-may dilute existing shareholders and impact earnings per share. Q1, 2025
3.
The absence or reduction of dividend payments may decrease the Company's attractiveness to income-focused investors and impact shareholder sentiment. Q1, 2025

World Acceptance Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$742.69M11.9010.84%8.14%14.79%
74
Outperform
$549.55M2.9714.69%0.94%12.45%-36.64%
72
Outperform
$331.15M10.149.51%3.59%6.57%44.84%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
66
Neutral
$632.16M8.916.03%23.90%
65
Neutral
$774.77M9.9222.68%15.21%20.25%
63
Neutral
$909.14M10.4720.78%-1.46%25.24%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WRLD
World Acceptance
154.82
34.66
28.84%
EZPW
EZCORP
13.50
3.18
30.81%
PRAA
Pra Group
15.94
-9.60
-37.59%
RM
Regional Management
32.09
1.56
5.11%
ATLC
Atlanticus Holdings
51.22
15.66
44.04%
YRD
Yiren Digital
6.36
2.02
46.54%

World Acceptance Corporate Events

Private Placements and FinancingStock BuybackFinancial Disclosures
World Acceptance Secures New $640M Credit Facility
Positive
Jul 24, 2025

On July 22, 2025, World Acceptance Corporation entered into a new three-year senior secured asset-based credit facility, replacing its previous revolving credit agreement. This new facility increases aggregate commitments to $640 million and allows for a $100 million stock repurchase program. Additionally, the company announced the redemption of its 7.00% Senior Secured Notes due 2026. In its fiscal 2026 first quarter results, the company reported increased revenues of $132.5 million and a 4.0% rise in its customer base, despite a decrease in net income to $1.3 million. The company also saw a growth in outstanding loans by $38.7 million and a decrease in loan delinquencies, positioning it for potential revenue growth and reduced charge-offs in future quarters.

The most recent analyst rating on (WRLD) stock is a Hold with a $146.00 price target. To see the full list of analyst forecasts on World Acceptance stock, see the WRLD Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
World Acceptance Approves New Long-Term Incentive Program
Neutral
Jun 13, 2025

On June 10, 2025, World Acceptance Corporation’s Compensation and Stock Option Committee approved a new long-term incentive program under the 2017 Stock Incentive Plan, granting both service-based restricted stock awards and performance-based restricted stock awards to certain employees, including executive officers. The performance shares are contingent on achieving specific earnings per share targets over a defined period, while the restricted stock awards will vest in two annual installments starting December 1, 2026, contingent on continued employment.

The most recent analyst rating on (WRLD) stock is a Hold with a $146.00 price target. To see the full list of analyst forecasts on World Acceptance stock, see the WRLD Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
World Acceptance Reports Q4 2025 Financial Results
Positive
Apr 29, 2025

World Acceptance Corporation reported its financial results for the fourth quarter of fiscal 2025, highlighting improved earnings driven by increased tax preparation revenue and a $2.8 million after-tax release of share-based compensation expense. The company achieved a net income of $44.3 million, with total revenues rising to $165.3 million, a 3.8% increase from the previous year. Despite a decrease in gross loans outstanding and challenges with credit losses, the customer base grew by 3.5%, and the company expects continued improvement in portfolio yields due to strategic adjustments in loan volume and underwriting practices.

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.Date of analysis: Jul 25, 2025