World Acceptance CorporationWRLD
NASDAQ • Financial Services
$147.63
P/E
19.95
PEG
—
FCF Yield
—
Rev Growth YoY
+7.4% YoY
Gross Margin
197.2%
Health Score
5/10
D/E Ratio
0.63
Confidence
LOW
Business Snapshot
World Acceptance Corporation operates as a consumer finance company providing small-loan credit products to individuals, primarily through a network of branch offices in the United States. The company serves a niche market of underbanked and non-prime borrowers, competing with other consumer finance lenders, payday lenders, and credit unions. With TTM revenue of $585.74 million, the company qualifies as a mid-cap financial stock, though market capitalisation is not provided. A defining characteristic is its branch-based model that relies on personal relationships and high-yield installment lending, which can produce strong cash flows but also carries elevated credit risk.
Financial Health
Net margin (TTM) stands at 7.5%, but gross margin data is flagged as unreliable (197.2%)—note this figure may be distorted or reflect a data error—making an accurate margin trend assessment impossible. The balance sheet appears manageable with a debt/equity ratio of 0.63x, though the current ratio of 0.08x is extremely low, indicating that short-term assets cover only a small fraction of current liabilities—a potential liquidity strain...
Risk Assessment
- EARNINGS QUALITY — The company has missed earnings estimates in all four of the most recent quarters, undermining management’s credibility and raising doubts about future guidance.
- REVENUE DECELERATION — While YoY revenue grew 7.4%, the 25.7% QoQ jump is unsustainably high and likely a seasonal spike, masking a longer-term deceleration trend.
- DEBT / LIQUIDITY — A current ratio of 0.08x is dangerously low, signalling that the company has almost no short-term asset buffer to cover immediate liabilities.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The FMP DCF fair value of $414.04 could not be cross-checked against the Python DCF (unavailable), creating uncertainty in the intrinsic value estimate.
- MARGIN DATA — Gross margin is flagged as a data error (197.2%), making historical margin comparisons unreliable....