World Acceptance (WRLD) AI Stock Analysis

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World Acceptance

(NASDAQ:WRLD)

78Outperform

World Acceptance exhibits strong financial health with excellent profitability and cash flow, backed by a solid balance sheet. The stock is in a positive technical trend but caution is advised due to overbought signals. Valuation metrics suggest it is undervalued, enhancing its attractiveness. Strategic initiatives discussed in the earnings call, like customer base growth and credit card pilots, indicate a proactive approach to overcoming challenges, resulting in a promising albeit moderately risky investment opportunity.

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

Market Cap

$754.83M

Dividend YieldN/A

Average Volume (3M)31.43K

Price to Earnings (P/E)8.0

Beta (1Y)1.58

Revenue Growth-1.46%

EPS GrowthN/A

CountryUS

Employees2,872

SectorFinancial

Sector Strength88

IndustryFinancial - Credit Services

Share Statistics

EPS (TTM)16.36

Shares Outstanding5,746,677

10 Day Avg. Volume32,779

30 Day Avg. Volume31,428

Financial Highlights & Ratios

PEG Ratio0.40

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.64

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit2.20

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$146.00

Price Target Upside11.15% Upside

Rating ConsensusHold

Number of Analyst Covering1

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 generates revenue primarily through the issuance of small consumer installment loans. These loans are typically offered to individuals who may not have access to traditional banking services or who require immediate financial assistance. The company earns money through the interest charged on these loans, as well as fees related to loan origination and servicing. Additionally, World Acceptance offers credit insurance and ancillary products, which contribute to its revenue streams. The company’s earnings are influenced by factors such as interest rates, credit risk management, and regulatory changes in the consumer finance industry.

World Acceptance Financial Statement Overview

Summary

World Acceptance presents a strong financial profile with excellent profitability and cash flow generation. The company's recent elimination of debt strengthens its balance sheet, though historical leverage could be a concern if debt levels rise again. Revenue volatility needs addressing to ensure sustained growth.

Income Statement

Positive

World Acceptance shows strong profitability with an impressive gross profit margin and EBIT margin for TTM (Trailing-Twelve-Months), reflecting efficient cost management. However, revenue growth has been inconsistent, with a significant decline in the last annual period, which might raise concerns about future top-line expansion.

Balance Sheet

Very Positive

The company maintains a robust balance sheet with no total debt in the TTM period, contributing to a solid equity position. The equity ratio is healthy, indicating financial stability. However, past periods show high leverage, which could pose risks if debt levels increase again.

Cash Flow

Very Positive

World Acceptance demonstrates strong cash flow performance, with substantial free cash flow relative to net income in the TTM period. The operating cash flow to net income ratio is excellent, indicating efficient cash generation. However, investment cash flows are significantly negative, which could impact future liquidity.

Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
524.98M	616.56M	585.65M	530.84M	590.62M
	Gross Profit
562.32M	357.09M	399.44M	444.60M	408.89M
	EBIT
151.65M	77.61M	105.67M	111.40M	35.89M
	EBITDA
158.53M	88.52M	110.68M	149.52M	47.07M
	Net Income Common Stockholders
77.35M	21.23M	53.92M	88.28M	28.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.84M	16.51M	19.24M	15.75M	11.62M
	Total Assets
1.06B	1.12B	1.22B	954.27M	1.03B
	Total Debt
577.95M	679.00M	779.85M	496.73M	553.86M
	Net Debt
566.11M	662.49M	760.61M	480.98M	542.24M
	Total Liabilities
631.92M	732.09M	845.27M	549.34M	613.60M
	Stockholders Equity
424.43M	385.23M	373.02M	404.93M	414.49M
Cash Flow		Free Cash Flow
259.85M	285.73M	275.41M	215.27M	269.70M
	Operating Cash Flow
265.78M	291.55M	281.48M	226.95M	280.98M
	Investing Cash Flow
-135.14M	-180.58M	-460.92M	-55.20M	-256.03M
	Financing Cash Flow
-135.32M	-113.70M	182.93M	-140.23M	905.40K

World Acceptance Technical Analysis

Technical Analysis Sentiment

Positive

Last Price131.35

Price Trends

50DMA

127.50

Positive

100DMA

126.58

Positive

200DMA

122.47

Positive

Market Momentum

MACD

2.47

Negative

RSI

50.98

Neutral

STOCH

68.58

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 131.35 is above the 20-day moving average (MA) of 125.53, above the 50-day MA of 127.50, and above the 200-day MA of 122.47, indicating a bullish trend. The MACD of 2.47 indicates Negative momentum. The RSI at 50.98 is Neutral, neither overbought nor oversold. The STOCH value of 68.58 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	84 Outperform	$565.28M	2.60	17.96%	2.75%	17.07%	-8.81%
EZPW	81 Outperform	$860.89M	13.82	10.84%	―	8.14%	14.79%
ATLC	80 Outperform	$777.38M	10.78	23.00%	―	13.46%	10.43%
WRLD	78 Outperform	$754.83M	8.03	20.78%	―	-1.46%	―
RM	71 Outperform	$330.46M	7.95	12.14%	3.64%	6.73%	151.08%
Sector *	63 Neutral	$12.46B	9.56	8.14%	17044.64%	12.63%	-4.25%
PRAA	60 Neutral	$726.58M	10.30	6.13%	―	39.47%	―

* Financial Sector Average

Performance Comparison

WRLD

World Acceptance

131.35

-9.05

-6.45%

EZPW

EZCORP

15.67

5.13

48.67%

PRAA

Pra Group

18.39

-6.32

-25.58%

Regional Management

27.61

1.33

5.06%

ATLC

Atlanticus Holdings

53.80

26.99

100.67%

YRD

Yiren Digital

6.55

1.45

28.43%

World Acceptance Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q4-2025)

% Change Since: -4.33%|

Next Earnings Date:Jul 17, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted positive developments such as customer base growth, improved gross yields, and increased non-refinance loan volume. However, it also pointed out challenges like a decrease in the outstanding ledger and sticky delinquency rates. The company's efforts to shift towards smaller loans and the introduction of a credit card pilot suggest strategic initiatives to address these challenges.

Q4-2025 Updates

Positive Updates

Customer Base Growth

The company reported a 3.5% increase in its customer base, marking the first year of year-over-year customer growth since fiscal year 2022.

Improved Gross Yields

Gross yields improved by over 100 basis points this year, contributing to the company's financial health.

Non-Refinance Loan Volume Increase

Non-refinance loan volume increased by 12.6% year-over-year, maintaining high credit quality and low first payment default rates.

Successful Tax Return Season

The fourth quarter benefited from a 25% increase in tax return revenue, contributing nearly $7 million.

Launch of Credit Card Pilot

The company piloted its first World finance credit card internally, with plans for wider pilots and customer offerings later this fiscal year.

Negative Updates

Decrease in Outstanding Ledger

The company ended the year with a $1.22 billion outstanding ledger, a 4% decrease year-over-year.

Sticky Delinquency Rates

Delinquency rates appeared stubborn to return to normal levels, partly due to the growth in new customers with higher loss rates.

Reduction in Average Balance per Customer

The average balance per customer decreased by 7.3% year-over-year, following a 7.1% decrease the previous year.

Company Guidance

During the World Acceptance Corporation's Fourth Quarter 2025 Earnings Conference Call, several key metrics and guidance details were provided by CEO Chad Prashad. The company concluded the fiscal year with a $1.22 billion outstanding ledger, marking a 4% decrease year-over-year, while the customer base grew by 3.5%. The average balance per customer decreased by 7.3% as part of ongoing efforts to improve gross yields, which saw an increase of over 100 basis points. The annualized charge-off rate was noted at 17.5%, with an anticipated natural reduction of 125 to 150 basis points with normal portfolio growth. The newest customer bucket saw a 36% increase, impacting delinquency rates, though improvements were noted in early-stage delinquency buckets. A 25% increase in tax return revenue contributed nearly $7 million, and a $2.8 million after-tax accrual release boosted EPS by $0.38 to $8.13 for the quarter. Non-refinance loan volume rose 12.6% year-over-year, and refinance volume improved slightly by 3% despite a temporary demand dip in March. The portfolio's composition shifted towards small loans, with large loans reduced to 48%. Approval rates for new customers improved by around 50% in the latter quarters compared to fiscal 2024. The company also initiated a pilot for its new World finance credit card, aiming to align yield with risk and expand market reach prudently.

World Acceptance Corporate Events

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.

Spark’s Take on WRLD Stock

According to Spark, TipRanks’ AI Analyst, WRLD is a Outperform.

World Acceptance Corporation has a solid financial performance with excellent profitability and cash flow, reinforced by a strong balance sheet. The technical analysis shows a neutral trend without significant upward or downward momentum. Valuation metrics indicate potential undervaluation, enhancing its attractiveness. The recent earnings call highlights effective strategic shifts and growth, though some risks in large loans persist. Overall, the stock presents a promising opportunity with moderate risks.

To see Spark’s full report on WRLD stock, click here.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.