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RM

Regional Management Corp.

RMFinancial ServicesNASDAQ

Credit Services

PriceMA150MA200
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Financials · Annual
Revenue
$560.8M
+9.1% YoY
Net Income
$44.4M
+7.7% YoY
Free Cash Flow
-$112.6M

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About Regional Management Corp.

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. The $334.1M market capitalization puts RM squarely in small-cap range for its industry. It offers small and large loans, and related payment and collateral protection insurance products.

Key stats
Market Cap$334.1M
P/E (TTM)7.36
Fwd P/E4.93
EPS$4.93
Beta1.03
52W Change+37.2%
Dividend Yield3.31%
ROE13.3%
Analysis

On the balance sheet, RM has $4.9M in cash with $1.66B in obligations. The ability to service this debt comfortably depends on continued operational cash generation. Free cash flow is running at -$112.6M, which bears watching. Negative free cash flow can be acceptable during heavy investment periods but needs to improve over time. ROE of 13.3% points to decent capital efficiency, indicating how much profit the company produces per dollar of shareholder equity. ROA of 4.8% is on the lower side, which is common in asset-heavy industries. Revenue has been uneven over recent years, ranging from $473.0M to $560.8M.

Regional Management Corp. carries a heavier debt load relative to its cash position, which introduces financial risk that investors should weigh. Negative free cash flow means the company is currently spending more than it generates, which may require future fundraising or debt if the trend continues. It is important to consider these factors alongside broader market conditions and individual financial goals when reviewing RM.

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