World Acceptance Corporation
$166.21
+0.38%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 23.9).
Valuation inputs: P/E 23.9, earnings yield +4.2%, momentum +0.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +3.3%, ROIC +7.1%).
Profitability stack: net margin +6.0%, ROE +3.3%, ROIC +7.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +66.4%, momentum +0.4%, net margin +6.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
World Acceptance Corporation Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Declining earnings warrant investigation into business challenges and competitive position.
Price-EPS Relationship
Price is rising despite declining earnings—caution advised as valuation may be stretched.
Stock Price Change
Over the 1Y period, stock price has increased by 6.1%.
P/E Ratio (TTM)
Moderate P/E ratio suggests fair market valuation relative to earnings.
Key Insight
Despite declining earnings (-50.7%), the stock price has risen (+6.1%). This disconnect suggests investors may be optimistic about future turnaround, but earnings recovery is critical to sustain the valuation.
World Acceptance Corporation Fair Value Envelope
World Acceptance Corporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
World Acceptance Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Flat FCF growth. Stable but not expanding—monitor for signs of business maturity or temporary headwinds.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
World Acceptance Corporation Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
World Acceptance Corporation Street Expectations Map
No Target Data
No analyst price targets available for wrld.
World Acceptance Corporation Insider Positioning
During the last 12 months, insiders have sold $2.81M worth of WRLD shares, with no buying activity reported.
3 Months
0
0.00
1.3K
185.08K
-185K
-$185K
3-6 Months
0
0.00
9.1K
1.36M
-1.4M
-$1.36M
6-9 Months
0
0.00
7.6K
1.26M
-1.3M
-$1.26M
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
No buying activity
Top Sellers
Dyer Daniel Clinton
Officer: See Remarks
$1.33M
Prashad R Chad
Director, Officer: President And Ceo
$969K
Calmes John L Jr
Officer: See Remarks
$170K
Caulder Alice Lindsay
Officer: Svp, Human Resources
$167K
Childers Jason E.
Officer: Svp, Information Technology
$127K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $2.81M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
WRLD has not reported any dividend yield values in the available annual periods.
wrld Dividend History
Learning Layer
Related Guides
Build conviction on WRLD by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.