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

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WRLD

World Acceptance

(NASDAQ:WRLD)

Rating:69Neutral
Price Target:
$180.00
▲(2.41% Upside)
World Acceptance's overall score reflects strong technical trends and positive earnings call insights, tempered by financial leverage risks and valuation considerations. The company's strategic initiatives and robust cash flow generation provide a solid foundation for future growth.

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 generates revenue primarily through interest and fees associated with its personal installment loans. When customers take out loans, they are charged interest, which constitutes a significant portion of the company’s revenue. Additionally, the company earns income from various fees, including late payment fees and loan origination fees. World Acceptance also engages in tax preparation services, which contribute to its revenue stream, particularly during the tax season when demand for these services peaks. The company’s focus on a niche market allows it to charge higher interest rates compared to traditional lenders, thus increasing its profitability. Furthermore, partnerships with various tax preparation platforms and financial service providers enhance its service offerings and attract more customers, contributing positively to its earnings.

World Acceptance Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong growth in new originations, customer base expansion, and improved credit performance. However, the constraints on stock repurchases due to outstanding bonds and the seasonal low in earnings were noted as challenges.
Q1-2026 Updates
Positive Updates
Increased Credit Agreement and Stock Repurchase Plan
The company completed a new credit agreement increasing commitments to $640 million, allowing for stock repurchases up to 100% of net income, up from 50% in the prior agreement, with a $100 million upfront repurchase allowance.
Strong Loan and Originations Growth
Loan growth and new originations increased by 12.6% over last year's first quarter, marking the highest volume of new originations since fiscal year 2020, with refinance volume also increasing by 10%.
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 the largest customer base since the first quarter of 2023.
Improved Credit Performance
Gross yields increased over 230 basis points year-over-year with stable first pay default rates and improving delinquency.
Negative Updates
Seasonal Low Earnings
The first quarter is historically the lowest for earnings, making up an average of only 5.6% of total annual net income, peaking at a high of 12%.
Outstanding Bonds
The company is in the process of redeeming $170 million of bonds issued in 2021, which constrains more accelerated stock repurchases until redemption is complete by the end of August.
Company Guidance
During the World Acceptance Corporation's first quarter 2026 earnings call, several key metrics and strategic updates were highlighted. The company announced an increase in its credit agreement commitments to $640 million, which now allows for stock repurchases of up to 100% of net income, compared to the previous 50%, with an additional $100 million upfront repurchase allowance effective January 1, 2025. The net income since the beginning of 2025 is approximately $45 million. The company is also redeeming outstanding bonds issued in 2021, with $170 million remaining to be redeemed by the end of August. In terms of growth, the first quarter saw a 12.6% increase in new originations compared to the previous year, with a 12.8% increase in dollars lent in new originations. The customer base also grew by 4% compared to the first quarter of the previous year. Despite the growth, first pay default rates remain stable, and delinquency is improving, with gross yields increasing by over 230 basis points year-over-year. The company also mentioned the ongoing development and testing of the New World Finance Smile credit card. Overall, the company is optimistic about moderate growth, low acquisition costs, and strong credit performance, all contributing to enhanced shareholder value through EPS growth.

World Acceptance Financial Statement Overview

Summary
World Acceptance shows strong cash flow generation, which is a key strength. However, the high leverage and inconsistent profitability pose financial risks. The balance sheet's high debt-to-equity ratio indicates significant leverage, but stable equity ratios provide some mitigation.
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue564.84M564.84M573.21M616.56M585.64M527.99M
Gross Profit256.00B395.63M416.03M306.62M365.56M416.05M
EBITDA164.89M164.97M110.30M38.06M77.25M123.82M
Net Income89.74M89.74M77.34M21.23M53.92M88.28M
Balance Sheet
Total Assets1.01B1.01B1.06B1.12B1.22B954.27M
Cash, Cash Equivalents and Short-Term Investments9.73M9.73M11.84M16.51M19.24M15.75M
Total Debt525.56M525.56M577.95M679.00M779.85M496.73M
Total Liabilities568.15M568.15M631.92M732.09M845.27M549.34M
Stockholders Equity439.48M439.48M424.43M385.23M373.02M404.93M
Cash Flow
Free Cash Flow250.48M250.48M259.85M285.73M266.38M215.27M
Operating Cash Flow254.16M254.16M265.78M291.55M272.45M226.95M
Investing Cash Flow-152.75M-152.75M-135.14M-180.58M-451.89M-82.00M
Financing Cash Flow-103.52M-103.52M-135.31M-113.70M182.93M-140.83M

World Acceptance Technical Analysis

Technical Analysis Sentiment
Positive
Last Price175.76
Price Trends
50DMA
166.42
Positive
100DMA
154.89
Positive
200DMA
140.08
Positive
Market Momentum
MACD
2.48
Negative
RSI
57.80
Neutral
STOCH
75.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRLD, the sentiment is Positive. The current price of 175.76 is above the 20-day moving average (MA) of 167.85, above the 50-day MA of 166.42, and above the 200-day MA of 140.08, indicating a bullish trend. The MACD of 2.48 indicates Negative momentum. The RSI at 57.80 is Neutral, neither overbought nor oversold. The STOCH value of 75.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks

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
79
Outperform
$1.01B13.5110.95%8.31%23.50%
78
Outperform
$1.00B11.8022.83%19.27%34.76%
76
Outperform
$508.07M2.8613.64%6.74%12.69%-35.36%
74
Outperform
$429.59M12.649.81%2.74%7.32%38.85%
69
Neutral
$957.15M11.8619.08%0.77%12.08%
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
65
Neutral
$662.69M7.317.38%18.67%2254.86%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WRLD
World Acceptance
175.76
60.90
53.02%
EZPW
EZCORP
16.90
5.37
46.57%
PRAA
Pra Group
16.96
-4.40
-20.60%
RM
Regional Management
43.80
14.24
48.17%
ATLC
Atlanticus Holdings
68.76
37.38
119.12%
YRD
Yiren Digital
5.79
1.57
37.20%

World Acceptance Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
World Acceptance Approves 2025 Stock Incentive Plan
Positive
Aug 22, 2025

On August 20, 2025, World Acceptance Corporation held its Annual Meeting of Shareholders, where the shareholders approved the 2025 Stock Incentive Plan. This plan allows for the issuance of up to 400,000 shares in stock options and other awards, enhancing the company’s ability to incentivize employees and directors. Additionally, the meeting saw the election of seven directors and the approval of executive compensation and the appointment of RSM US LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026. These decisions reflect the company’s strategic focus on strengthening governance and aligning executive incentives with shareholder interests.

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.

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.

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: Aug 23, 2025