Atlanticus Holdings (ATLC) AI Stock Analysis

• Market Cap: $829.98M
• Dividend Yield: N/A
• Average Volume (3M): 51.52K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.68
• Revenue Growth: 13.46%
• EPS Growth: 10.43%
• Country: US
• Employees: 417
• Sector: Financial
• Sector Strength: 87
• Industry: Financial - Credit Services
• EPS (TTM): 1.49
• Shares Outstanding: 15,126,229
• 10 Day Avg. Volume: 41,887
• 30 Day Avg. Volume: 51,516
• PEG Ratio: -0.08
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.77
• Enterprise Value/Market Cap: 3.57
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.02
• Enterprise Value/Ebitda: 1.96
• 1Y Price Target: $72.00
• Price Target Upside: 31.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Atlanticus Holdings shows strong revenue growth and robust cash flow generation, which contribute positively to its financial performance. While technical indicators suggest short-term bullish momentum, there are signs of potential resistance ahead. The valuation appears reasonable, although the lack of a dividend yield may limit appeal. High leverage and declining profitability margins are key risks to monitor.

Positive Factors

Growth Potential

The significant growth rate anticipated for the next three years reinforces confidence in ATLC shares.

Partnerships

Atlanticus is growing through partnerships with major retailers like Lowe's and Home Depot, and potential new merchant partnerships.

Valuation

The valuation of ATLC is seen as attractive with a P/E multiple that is cheaper than peers, despite rapid growth and improving credit trends.

Negative Factors

Cost of Living

The cost of living remains high, with rent, gas, and food continuing to constrain borrowers’ household savings and liquidity.

Expenses

Expenses were 9% higher than consensus, impacting earnings per share and target price.

Regulatory Impact

Management continues to focus on the potential impact of updated late fee rules which could significantly decrease total late fee collections.

Atlanticus Holdings Business Overview & Revenue Model

Company Description

Atlanticus Holdings Corporation (ATLC) is a financial services company based in the United States, primarily focused on providing credit and related financial services to underserved consumers. The company operates in the consumer finance sector, offering products such as credit cards, personal loans, and other financial services designed to meet the needs of consumers who are often overlooked by traditional financial institutions.

How the Company Makes Money

Atlanticus Holdings makes money through its diverse portfolio of credit-related financial products. The company generates revenue primarily from interest and fees associated with its credit card and loan products, which are offered to consumers who may have limited access to traditional credit sources. Additionally, Atlanticus collaborates with various retail and financial partners to offer consumer credit solutions, enhancing its reach and potential customer base. The company also benefits from its proprietary technology platform, which helps manage credit risk and optimize customer acquisition and retention, contributing to its overall earnings.

Atlanticus Holdings Financial Statement Overview

Summary

Atlanticus Holdings has demonstrated impressive revenue growth and strong cash flow generation. However, the decline in profitability margins and high leverage are areas of concern. Improvements in the equity ratio and a strong cash position provide some reassurance.

Income Statement

Atlanticus Holdings has demonstrated significant growth in its total revenue, with a noticeable increase from $292.6M in 2022 to $1.31B in 2024. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has decreased over time, reflecting potential challenges in maintaining profitability despite higher revenues. EBIT and EBITDA margins have also declined, suggesting increased operational costs or reduced pricing power.

Balance Sheet

The company's debt-to-equity ratio indicates a high level of leverage, with total debt significantly exceeding stockholders' equity. Despite this, the equity ratio has improved over the years, reflecting increased shareholder equity relative to total assets. Return on equity (ROE) has shown variability, indicating potential fluctuations in profitability. The balance sheet shows a strong cash position, enhancing liquidity.

Cash Flow

Operating cash flow has been consistently strong, supporting robust free cash flow figures. The free cash flow to net income ratio is favorable, indicating efficient cash generation relative to earnings. However, the high investing cash outflows could pose a risk if not carefully managed, suggesting significant reinvestment into the business or acquisitions.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
299.40M	1.16B	292.56M	399.80M	340.27M
	Gross Profit
249.26M	1.05B	248.69M	361.57M	307.79M
	EBIT
298.75M	257.85M	207.03M	219.69M	114.59M
	EBITDA
0.00	241.94M	0.00	0.00	0.00
	Net Income Common Stockholders
111.30M	102.84M	135.60M	177.90M	94.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
499.64M	383.65M	384.98M	409.66M	178.10M
	Total Assets
3.27B	2.71B	2.39B	1.94B	1.21B
	Total Debt
2.51B	2.03B	1.82B	1.43B	923.69M
	Net Debt
2.13B	1.64B	1.43B	1.02B	745.59M
	Total Liabilities
2.78B	2.17B	2.02B	1.62B	1.09B
	Stockholders Equity
492.91M	434.68M	366.41M	328.00M	117.28M
Cash Flow		Free Cash Flow
467.62M	455.32M	341.28M	205.28M	211.99M
	Operating Cash Flow
469.40M	459.32M	346.13M	212.37M	212.73M
	Investing Cash Flow
-747.03M	-672.20M	-680.78M	-475.02M	-292.57M
	Financing Cash Flow
393.61M	163.34M	261.25M	510.33M	162.38M

Atlanticus Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLC, the sentiment is Positive. The current price of 54.87 is above the 20-day moving average (MA) of 53.96, above the 50-day MA of 51.05, and above the 200-day MA of 46.90, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 60.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATLC.

Atlanticus Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATLC	80 Outperform	$829.98M	10.63	22.68%	―	13.46%	10.43%
WRLD	78 Outperform	$807.70M	8.59	20.78%	―	-1.46%	―
YRD	75 Outperform	$540.26M	2.49	17.96%	6.07%	17.03%	-23.72%
NRDS	74 Outperform	$826.34M	28.16	7.86%	―	24.20%	―
RM	71 Outperform	$286.61M	8.77	9.51%	4.15%	6.57%	44.84%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.61%
PRAA	55 Neutral	$533.01M	7.51	6.03%	―	23.90%	―