World Acceptance (WRLD) AI Stock Analysis

• Market Cap: $719.03M
• Dividend Yield: N/A
• Average Volume (3M): 67.38K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.28
• Revenue Growth: 2.31%
• EPS Growth: -27.81%
• Country: US
• Employees: 2,872
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.38
• Shares Outstanding: 5,038,077
• 10 Day Avg. Volume: 68,204
• 30 Day Avg. Volume: 67,381
• PEG Ratio: 0.34
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 2.78
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 4.34
• Enterprise Value/Ebitda: 18.62
• 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: $147.00 ▲(3.00% Upside)

World Acceptance's overall stock score is driven by strong financial performance and cash flow generation, despite challenges in profitability. Technical indicators suggest a bearish trend, but potential for reversal exists. Valuation is moderate, and the earnings call highlighted both growth opportunities and financial challenges.

Positive Factors

Strong Cash Flow Generation

Robust cash generation capabilities indicate efficient operations and provide financial flexibility for strategic investments and debt management.

New Customer Growth

Significant new customer growth expands the company's market reach and revenue base, supporting long-term business sustainability.

Improved Capital Position

Enhancing capital structure through bond repurchase and new credit facilities strengthens financial stability and supports future growth.

Negative Factors

Decreased Return on Equity

A decline in return on equity indicates potential inefficiencies in capital utilization, which may impact long-term profitability.

Increased Long-term Incentive Comp Expenses

Rising compensation expenses can pressure margins and profitability, affecting the company's ability to reinvest in growth initiatives.

Executive Retirement

Leadership changes can disrupt strategic continuity and operational execution, potentially impacting long-term business performance.

World Acceptance Business Overview & Revenue Model

Company Description

World Acceptance Corporation (WRLD) is a consumer finance company based in the United States, primarily operating in the subprime lending sector. The company specializes in providing personal installment loans, primarily to customers with limited access to traditional credit sources. WRLD also offers related financial services, including tax preparation and retail sales of ancillary products, catering to the financial needs of individuals seeking flexible payment solutions.

How the Company Makes Money

World Acceptance generates revenue primarily through interest and fees associated with its personal installment loans. The company's lending model focuses on offering loans to individuals with lower credit scores, which typically results in higher interest rates compared to conventional lenders. Additionally, the company earns revenue from various fees, including origination fees, late fees, and other service charges tied to its loan products. WRLD also benefits from partnerships with other financial service providers, enhancing its product offerings and attracting a broader customer base. The combination of these revenue streams allows World Acceptance to maintain a sustainable business model within the competitive consumer finance landscape.

World Acceptance Financial Statement Overview

Summary

World Acceptance shows strong revenue growth and cash flow generation, but faces challenges in maintaining high net profit margins. The balance sheet indicates improved leverage, but return on equity has declined. Overall, the company is financially stable with room for improvement in profitability.

Income Statement

World Acceptance has shown impressive revenue growth in the TTM period, with a significant increase in total revenue. However, the net profit margin is relatively low, indicating potential challenges in cost management or high expenses. The EBIT and EBITDA margins are healthy, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management. However, the return on equity has decreased, which could suggest less efficient use of equity capital. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

World Acceptance has demonstrated strong free cash flow growth in the TTM period, indicating robust cash generation capabilities. The operating cash flow to net income ratio is high, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is also strong, reflecting good cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	570.82M	564.84M	573.21M	616.55M	585.19M	527.99M
Gross Profit	346.88M	395.63M	368.01M	306.62M	365.55M	416.05M
EBITDA	80.92M	164.97M	110.30M	38.06M	77.25M	123.82M
Net Income	57.06M	89.74M	77.35M	21.23M	53.92M	88.28M
Balance Sheet
Total Assets	1.06B	1.01B	1.06B	1.12B	1.22B	954.27M
Cash, Cash Equivalents and Short-Term Investments	14.88M	9.73M	11.84M	16.51M	19.24M	15.75M
Total Debt	660.08M	525.56M	577.95M	679.00M	779.85M	496.73M
Total Liabilities	696.72M	568.15M	631.92M	732.09M	845.27M	549.34M
Stockholders Equity	365.65M	439.48M	424.43M	385.23M	373.02M	404.93M
Cash Flow
Free Cash Flow	255.33M	250.48M	259.85M	285.73M	266.38M	215.27M
Operating Cash Flow	258.84M	254.16M	265.78M	291.55M	272.45M	226.95M
Investing Cash Flow	-208.12M	-152.75M	-135.14M	-180.58M	-451.89M	-82.00M
Financing Cash Flow	-45.58M	-103.52M	-135.31M	-113.70M	182.93M	-140.83M

World Acceptance Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 142.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRLD, the sentiment is Negative. The current price of 142.72 is below the 20-day moving average (MA) of 148.65, below the 50-day MA of 147.71, and below the 200-day MA of 151.75, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 51.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRLD.

World Acceptance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	79 Outperform	$251.88M	6.34	10.79%	4.34%	15.52%	2.05%
EZPW	75 Outperform	$1.17B	14.07	11.98%	―	9.70%	26.63%
ATLC	73 Outperform	$1.05B	12.30	21.01%	―	25.29%	26.70%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WRLD	64 Neutral	$719.03M	13.65	14.57%	―	2.31%	-27.81%
RM	64 Neutral	$393.85M	9.83	11.43%	2.96%	9.63%	77.14%
GDOT	61 Neutral	$715.47M	-15.15	-5.09%	―	23.12%	19.37%

World Acceptance Corporate Events

World Acceptance Announces Executive Retirement Plan

On December 4, 2025, World Acceptance Corporation announced the retirement of D. Clinton Dyer, Executive Vice President and Chief Branch Operations Officer, effective March 31, 2026, after 30 years of service. In recognition of his contributions, the company approved a retirement package including compensation and benefits. J. Tobin Turner will assume interim leadership of branch operations during the transition, ensuring continuity in the company’s strategic focus and operational excellence.

World Acceptance Reports Q2 2026 Financial Results

On October 23, 2025, World Acceptance Corporation announced its financial results for the second quarter of fiscal 2026, highlighting a 1.5% year-over-year growth in outstanding loans, marking the first growth since September 2022. Despite a net loss per diluted share of $0.38 due to early bond redemption expenses and portfolio growth investments, the company reported increased interest, fee, and insurance income, a 6.2% rise in its customer base, and strategic financial adjustments such as amending its revolving credit facility and establishing a $175 million warehouse facility. The quarter also saw a decrease in net income compared to the previous year, influenced by share-based compensation expenses and early redemption costs, but the company anticipates improved results in fiscal 2027.

World Acceptance Secures $175M Credit Agreement

On September 29, 2025, World Acceptance Corporation and its subsidiary, WFC Receivables I, LLC, entered into a Credit Agreement to establish a $175 million revolving warehouse facility. This facility, secured by consumer loan receivables, aims to enhance the company’s financial operations by providing a structured framework for loan management and repayment. The agreement outlines specific terms, including interest rates, payment schedules, and conditions for default, which are designed to maintain financial stability and operational efficiency. The arrangement also allows for the delegation of servicing duties and includes provisions for handling potential servicing or default events, ensuring robust risk management.