World Acceptance (WRLD) AI Stock Analysis

• Market Cap: $958.40M
• Dividend Yield: N/A
• Average Volume (3M): 40.87K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.56
• Revenue Growth: 0.77%
• EPS Growth: 12.08%
• Country: US
• Employees: 2,872
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.25
• Shares Outstanding: 5,445,788
• 10 Day Avg. Volume: 45,563
• 30 Day Avg. Volume: 40,867
• 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: 1.48
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: 9.36
• 1Y Price Target: $194.00
• Price Target Upside: 10.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: $194.00 ▲(10.23% Upside)

World Acceptance's stock is supported by strong financial performance and positive technical indicators. The company's robust revenue growth and operational efficiency are key strengths, although high leverage and low net profit margin present risks. The technical analysis suggests bullish momentum, and the valuation indicates reasonable pricing. The positive outlook from the earnings call further supports the stock's potential, despite some challenges.

World Acceptance Business Overview & Revenue Model

Company Description

World 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 Money

World 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 Financial Statement Overview

Summary

World Acceptance demonstrates strong cash flow generation and a stable financial position. However, high leverage and inconsistent profitability pose potential risks. The robust operating cash flow is a key strength, providing a buffer against financial volatility.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	567.77M	564.84M	573.21M	616.56M	585.64M	527.99M
Gross Profit	256.06B	395.63M	416.03M	306.62M	365.56M	416.05M
EBITDA	151.12M	164.97M	110.30M	38.06M	77.25M	123.82M
Net Income	81.14M	89.74M	77.34M	21.23M	53.92M	88.28M
Balance Sheet
Total Assets	1.02B	1.01B	1.06B	1.12B	1.22B	954.27M
Cash, Cash Equivalents and Short-Term Investments	8.13M	9.73M	11.84M	16.51M	19.24M	15.75M
Total Debt	548.83M	525.56M	577.95M	679.00M	779.85M	496.73M
Total Liabilities	596.21M	568.15M	631.92M	732.09M	845.27M	549.34M
Stockholders Equity	427.85M	439.48M	424.43M	385.23M	373.02M	404.93M
Cash Flow
Free Cash Flow	260.27M	250.48M	259.85M	285.73M	266.38M	215.27M
Operating Cash Flow	263.91M	254.16M	265.78M	291.55M	272.45M	226.95M
Investing Cash Flow	-185.15M	-152.75M	-135.14M	-180.58M	-451.89M	-82.00M
Financing Cash Flow	-81.75M	-103.52M	-135.31M	-113.70M	182.93M	-140.83M

World Acceptance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 175.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 175.99 is above the 20-day moving average (MA) of 171.70, above the 50-day MA of 167.04, and above the 200-day MA of 144.02, indicating a bullish trend. The MACD of 1.90 indicates Negative momentum. The RSI at 57.87 is Neutral, neither overbought nor oversold. The STOCH value of 86.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRLD.

World Acceptance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EZPW	79 Outperform	1.10B	14.91	9.91%	―	8.31%	23.50%
ATLC	78 Outperform	1.01B	11.35	20.88%	―	19.27%	34.76%
YRD	77 Outperform	514.12M	2.90	16.58%	6.50%	12.69%	-35.36%
WRLD	75 Outperform	$958.40M	11.87	19.08%	―	0.77%	12.08%
RM	74 Outperform	417.73M	12.29	11.55%	2.82%	7.32%	38.85%
PRAA	62 Neutral	620.10M	6.85	6.85%	―	18.67%	2254.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

World Acceptance Corporate Events

World Acceptance Approves 2025 Stock Incentive Plan

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.

World Acceptance Secures New $640M Credit Facility

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.

World Acceptance Approves New Long-Term Incentive Program

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.