World Acceptance (WRLD) AI Stock Analysis

• Market Cap: $694.17M
• Dividend Yield: N/A
• Average Volume (3M): 58.27K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.38
• Revenue Growth: 2.31%
• EPS Growth: N/A
• Country: US
• Employees: 2,872
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.38
• Shares Outstanding: 5,445,788
• 10 Day Avg. Volume: 59,693
• 30 Day Avg. Volume: 58,272
• PEG Ratio: 0.34
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 2.78
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: 9.82
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $150.00 ▼(-15.50% Downside)

World Acceptance's overall stock score reflects strong financial performance and reasonable valuation, tempered by bearish technical indicators and mixed earnings call results. The company's high leverage and recent GAAP loss are notable risks, while new customer growth and improved capital position are positive factors.

World Acceptance Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

World Acceptance generates revenue primarily through interest and fees associated with its personal installment loans. When customers take out loans, they are charged interest, which constitutes a significant portion of the company’s revenue. Additionally, the company earns income from various fees, including late payment fees and loan origination fees. World Acceptance also engages in tax preparation services, which contribute to its revenue stream, particularly during the tax season when demand for these services peaks. The company’s focus on a niche market allows it to charge higher interest rates compared to traditional lenders, thus increasing its profitability. Furthermore, partnerships with various tax preparation platforms and financial service providers enhance its service offerings and attract more customers, contributing positively to its earnings.

World Acceptance Financial Statement Overview

Summary

World Acceptance demonstrates strong revenue growth and operational efficiency, as reflected in its high gross profit margin and healthy EBIT/EBITDA margins. However, the low net profit margin suggests room for improvement in cost management. The balance sheet shows high leverage, which could pose risks if not managed carefully. Cash flow generation is robust, supporting the company's financial stability and potential for future growth.

Income Statement

World Acceptance has shown strong revenue growth in the TTM period with a 51.8% increase, indicating a robust recovery and expansion. The gross profit margin is exceptionally high at 451%, suggesting significant pricing power or accounting anomalies. However, the net profit margin is relatively low at 0.14%, indicating potential inefficiencies or high expenses. EBIT and EBITDA margins are healthy, reflecting good operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved over time but remains relatively high at 1.28, indicating significant leverage. Return on equity is decent at 18.95%, showing effective use of equity capital. The equity ratio is moderate, suggesting a balanced approach to financing through debt and equity.

Cash Flow

Operating cash flow is strong, with a high coverage ratio of 5.57, indicating good cash generation relative to net income. Free cash flow growth is positive at 3.91%, showing improvement in cash generation. The free cash flow to net income ratio is nearly 1, suggesting efficient conversion of net income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	567.77M	564.84M	573.21M	616.56M	585.64M	527.99M
Gross Profit	256.06B	395.63M	416.03M	306.62M	365.56M	416.05M
EBITDA	153.47M	164.97M	110.30M	38.06M	77.25M	123.82M
Net Income	81.14M	89.74M	77.34M	21.23M	53.92M	88.28M
Balance Sheet
Total Assets	1.02B	1.01B	1.06B	1.12B	1.22B	954.27M
Cash, Cash Equivalents and Short-Term Investments	8.13M	9.73M	11.84M	16.51M	19.24M	15.75M
Total Debt	548.83M	525.56M	577.95M	679.00M	779.85M	496.73M
Total Liabilities	596.21M	568.15M	631.92M	732.09M	845.27M	549.34M
Stockholders Equity	427.85M	439.48M	424.43M	385.23M	373.02M	404.93M
Cash Flow
Free Cash Flow	260.27M	250.48M	259.85M	285.73M	266.38M	215.27M
Operating Cash Flow	263.91M	254.16M	265.78M	291.55M	272.45M	226.95M
Investing Cash Flow	-185.15M	-152.75M	-135.14M	-180.58M	-451.89M	-82.00M
Financing Cash Flow	-81.75M	-103.52M	-135.31M	-113.70M	182.93M	-140.83M

World Acceptance Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 177.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRLD, the sentiment is Negative. The current price of 177.51 is above the 20-day moving average (MA) of 162.32, above the 50-day MA of 168.36, and above the 200-day MA of 150.89, indicating a bearish trend. The MACD of -11.09 indicates Positive momentum. The RSI at 26.42 is Positive, neither overbought nor oversold. The STOCH value of 4.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRLD.

World Acceptance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EZPW	―	$1.11B	14.80	10.95%	―	8.31%	23.50%
ATLC	―	$833.56M	9.69	22.83%	―	19.27%	34.76%
MFIN	―	$228.51M	5.75	10.79%	4.56%	15.52%	2.05%
RM	―	$385.59M	11.35	9.81%	3.05%	7.32%	38.85%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WRLD	―	$694.17M	12.20	14.57%	―	2.31%	―
GDOT	―	$643.11M	-26.37	-2.68%	―	22.15%	57.64%

World Acceptance Corporate Events

World Acceptance Corporation Reports Q2 Fiscal 2026 Results

World Acceptance Corporation, a finance company specializing in personal installment loans and tax services, operates over 1,000 branches across 16 U.S. states. In its fiscal 2026 second-quarter earnings report, the company highlighted a notable increase in outstanding loans and a strategic focus on portfolio growth, despite reporting a net loss. Key financial metrics revealed a 1.5% year-over-year growth in outstanding loans, a 6.2% increase in the customer base, and a 4.6% rise in interest, fee, and insurance income. The company also amended its revolving credit facility and repurchased a significant portion of its shares. Despite a net loss of $1.9 million attributed to early bond redemption expenses and increased share-based compensation, the company reported a 2.3% increase in total revenues to $134.5 million. Looking ahead, World Acceptance Corporation remains optimistic about future growth, supported by strategic investments and improved portfolio yields.

World Acceptance’s Earnings Call: Mixed Results Amid Growth

World Acceptance’s recent earnings call painted a mixed picture for investors. The company showcased significant strides in new customer growth and origination volume, alongside an improved capital position. However, these positives were counterbalanced by one-time expenses and increased provisions, leading to a GAAP loss for the quarter. The sentiment expressed during the call was cautiously optimistic, acknowledging the challenges while highlighting the strategic advancements.

World Acceptance Reports Q2 2026 Financial Results

On October 23, 2025, World Acceptance Corporation announced its financial results for the second quarter of fiscal 2026, highlighting a 1.5% year-over-year growth in outstanding loans, marking the first growth since September 2022. Despite a net loss per diluted share of $0.38 due to early bond redemption expenses and portfolio growth investments, the company reported increased interest, fee, and insurance income, a 6.2% rise in its customer base, and strategic financial adjustments such as amending its revolving credit facility and establishing a $175 million warehouse facility. The quarter also saw a decrease in net income compared to the previous year, influenced by share-based compensation expenses and early redemption costs, but the company anticipates improved results in fiscal 2027.

The most recent analyst rating on (WRLD) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on World Acceptance stock, see the WRLD Stock Forecast page.

World Acceptance Secures $175M Credit Agreement

On September 29, 2025, World Acceptance Corporation and its subsidiary, WFC Receivables I, LLC, entered into a Credit Agreement to establish a $175 million revolving warehouse facility. This facility, secured by consumer loan receivables, aims to enhance the company’s financial operations by providing a structured framework for loan management and repayment. The agreement outlines specific terms, including interest rates, payment schedules, and conditions for default, which are designed to maintain financial stability and operational efficiency. The arrangement also allows for the delegation of servicing duties and includes provisions for handling potential servicing or default events, ensuring robust risk management.

The most recent analyst rating on (WRLD) stock is a Buy with a $194.00 price target. To see the full list of analyst forecasts on World Acceptance stock, see the WRLD Stock Forecast page.

World Acceptance Approves 2025 Stock Incentive Plan

On August 20, 2025, World Acceptance Corporation held its Annual Meeting of Shareholders, where the shareholders approved the 2025 Stock Incentive Plan. This plan allows for the issuance of up to 400,000 shares in stock options and other awards, enhancing the company’s ability to incentivize employees and directors. Additionally, the meeting saw the election of seven directors and the approval of executive compensation and the appointment of RSM US LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026. These decisions reflect the company’s strategic focus on strengthening governance and aligning executive incentives with shareholder interests.

The most recent analyst rating on (WRLD) stock is a Hold with a $180.00 price target. To see the full list of analyst forecasts on World Acceptance stock, see the WRLD Stock Forecast page.