Regional Management Corp.
$34.24
-3.8%Regional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders in the United States. It offers small and large installment loans; and retail loans to finance the purchase of furniture, appliances, and other retail products. The company also provides insurance products, including credit life, credit accident and health, credit property, vehicle single interest, and credit involuntary unemployment insurance; collateral protection insurance; and property insurance, as well as reinsurance products. In addition, its loans are sourced through branches, centrally managed direct mail campaigns, digital partners, and retailers, as well as its consumer website. As of February 24, 2022, the company operated through a network of approximately 350 branches in 14 states. Regional Management Corp. was incorporated in 1987 and is headquartered in Greer, South Carolina.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 7.4).
Valuation inputs: P/E 7.4, earnings yield +13.5%, momentum -3.8%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +11.9%, ROIC +2.8%).
Profitability stack: net margin +6.9%, ROE +11.9%, ROIC +2.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +82.9%, momentum -3.8%, net margin +6.9%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Regional Management Corp. Market vs Earnings Trajectory
Loading price and EPS data...
Regional Management Corp. Fair Value Envelope
Regional Management Corp. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
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.
Regional Management Corp. 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
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Regional Management Corp. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
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.
Regional Management Corp. Street Expectations Map
No Target Data
No analyst price targets available for rm.
Regional Management Corp. Insider Positioning
During the last 12 months, insiders have purchased $1.66M and sold $10.53M worth of RM shares, resulting in $8.87M of net selling activity.
3 Months
953
30.56K
105.8K
4.07M
-4.0M
-$4.04M
3-6 Months
0
0.00
81.6K
3.10M
-3.1M
-$3.10M
6-9 Months
0
0.00
75.4K
2.82M
-2.8M
-$2.82M
9-12 Months
57.1K
1.63M
16.8K
544.18K
+1.1M
+$1.09M
Top Buyers
Forager Fund, L.P.
10 Percent Owner
$1.63M
Campos Roel C
Director
$31K
Top Sellers
Forager Fund, L.P.
10 Percent Owner
$4.33M
Basswood Capital Management, L.L.C.
Director, 10 Percent Owner, Other: Director-By-Deputization
$3.39M
Fisher Brian J.
Officer: Evp, Chief Strat/Dev Officer
$901K
Rana Harpreet
Officer: Evp, Chief Fin & Admin Officer
$685K
Dunn Michael R
Director
$375K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $8.87M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
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. 2 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.
rm Dividend History
Learning Layer
Related Guides
Build conviction on RM 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.