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World Acceptance
(NASDAQ:WRLD)
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Rating:63Neutral
Price Target:
$194.00
▲(0.28% Upside)
Action:Reiterated
Date:09/21/26
WRLD scores as moderately attractive, led by solid operating performance and a constructive earnings call with improving (though still high) credit metrics. The overall score is held back by elevated balance-sheet leverage and earnings/cash-flow volatility, while technical indicators point to weak near-term momentum; valuation appears reasonable but not notably cheap and lacks dividend support.
Positive Factors
Operating profitability
Strong TTM revenue growth combined with healthy gross, EBIT, and EBITDA margins indicates that the core lending model is generating meaningful operating profit. This provides capacity to absorb credit costs, fund ongoing branch operations, and support earnings resilience over the next several quarters.
Negative Factors
Elevated leverage
Debt materially exceeds equity, leaving the company reliant on continued portfolio cash generation and lender access to fund its lending model. This leverage can limit strategic flexibility and amplify the impact of weaker credit performance, higher provisions, or a downturn in borrower repayment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating profitability
Strong TTM revenue growth combined with healthy gross, EBIT, and EBITDA margins indicates that the core lending model is generating meaningful operating profit. This provides capacity to absorb credit costs, fund ongoing branch operations, and support earnings resilience over the next several quarters.
Read all positive factors
World Acceptance (WRLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$849.35M
Dividend YieldN/A
Average Volume (3M)65.76K
Price to Earnings (P/E)21.2
Beta (1Y)1.04
Revenue Growth4.36%
EPS Growth-42.48%
CountryUS
Employees2,907
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)8.61
Shares Outstanding4,663,180
10 Day Avg. Volume53,667
30 Day Avg. Volume65,762
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)1.93
Price to Sales (P/S)1.16
P/FCF Ratio2.66
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)10.99
Revenue Forecast (FY)$632.00M
World Acceptance Business Overview & Revenue Model
Company Description
World Acceptance Corporation (WRLD) functions as a consumer finance provider, specializing in offering small-dollar loans. The company's product portfolio includes various installment loan types, ranging from short-term, modest sums to larger, med...
How the Company Makes Money
World Acceptance primarily makes money by earning finance charges and interest income on its portfolio of consumer installment loans. Revenue is generated as borrowers repay principal plus contractual interest/fees over the life of each loan; the ...
World Acceptance Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented several clear positives: EPS of $2.12, revenue up 4.8%, a 13.4% reduction in provision expense, a 91 basis-point yield increase, and measurable improvements in net charge-offs and front-end delinquency. Management also reported robust demand and active, conservative portfolio management. Offsetting these positives are still-elevated charge-off and delinquency levels (~18% range), a decline in bookable applications due to prior tightening, modest G&A increases, and one-time CEO transition costs. Overall, the balance of encouraging operational and credit improvements against manageable but notable challenges leads to a constructive tone.Positive Updates
Adjusted EPS
Adjusted earnings per share of $2.12 for the first quarter, reflecting improved profitability for the period.
Negative Updates
Persistently High Charge-Offs and Delinquency Levels
Despite improvements, annualized net charge-off rate remains elevated at 18.2% and front-end delinquency around 18.1%, indicating credit losses and delinquency are still material.
Read all updates
Q1-2027 Updates
Positive
Negative
Adjusted EPS
Adjusted earnings per share of $2.12 for the first quarter, reflecting improved profitability for the period.
Read all positive updates
Company Guidance
Management said it is "well positioned" for the remainder of fiscal 2027 and will continue to focus on responsible loan growth, improving credit quality and disciplined expenses; in Q1 they reported adjusted EPS of $2.12, revenue up 4.8% year‑over‑year, provision expense down 13.4%, and interest and insurance yields up 91 basis points, with annualized net charge‑offs improving to 18.2% from 19.2% a year ago and front‑end delinquency declining to 18.1% from 19.2%; they noted modest G&A increases outside one‑time CEO transition costs, said demand remains robust even as bookable applications fell following a credit box tightening about six months ago that was partially loosened about one month ago, and reiterated a disciplined expense posture going forward.World Acceptance Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 591.92M | 585.17M | 564.84M | 573.21M | 616.55M | 585.19M |
| Gross Profit | 358.84M | 347.12M | 395.63M | 368.01M | 306.62M | 365.55M |
| EBITDA | 60.05M | 54.23M | 164.97M | 110.30M | 38.06M | 77.25M |
| Net Income | 39.35M | 34.59M | 89.74M | 77.35M | 21.23M | 53.92M |
Balance Sheet | ||||||
| Total Assets | 1.08B | 1.05B | 1.01B | 1.06B | 1.12B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 10.42M | 6.07M | 4.71M | 11.84M | 16.51M | 19.24M |
| Total Debt | 648.07M | 661.19M | 525.56M | 577.95M | 679.00M | 779.85M |
| Total Liabilities | 716.86M | 703.12M | 571.50M | 631.92M | 732.09M | 845.27M |
| Stockholders Equity | 362.18M | 351.01M | 436.99M | 424.43M | 385.23M | 373.02M |
Cash Flow | ||||||
| Free Cash Flow | 260.27M | 255.48M | 250.48M | 259.85M | 285.73M | 266.38M |
| Operating Cash Flow | 265.58M | 259.36M | 254.16M | 265.78M | 291.55M | 272.45M |
| Investing Cash Flow | -215.63M | -232.88M | -152.75M | -135.14M | -180.58M | -451.89M |
| Financing Cash Flow | -30.10M | -6.83M | -103.52M | -135.31M | -113.70M | 182.93M |
World Acceptance Technical Analysis
Neutral
193.45
Price Trends
189.39
Negative
180.52
Positive
159.64
Positive
Market Momentum
-1.01
Positive
41.67
Neutral
22.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRLD, the sentiment is Neutral. The current price of 193.45 is above the 20-day moving average (MA) of 188.48, above the 50-day MA of 189.39, and above the 200-day MA of 159.64, indicating a neutral trend. The MACD of -1.01 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 22.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WRLD.
World Acceptance Risk Analysis
World Acceptance disclosed 47 risk factors in its most recent earnings report. World Acceptance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
World Acceptance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.88B | 11.88 | 14.45% | ― | 28.61% | 47.06% | |
78 Outperform | $275.06M | 8.56 | 8.86% | 4.34% | 5.42% | -24.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $849.35M | 21.15 | 11.00% | ― | 4.36% | -42.48% | |
63 Neutral | $289.60M | 6.30 | 12.49% | 3.82% | 9.63% | 40.75% | |
61 Neutral | $1.41B | 9.69 | 23.09% | 16.39% | 83.72% | 35.89% | |
58 Neutral | $750.49M | -27.62 | -2.82% | ― | 17.73% | -9.69% |
* Financial Sector Average
WRLD
World Acceptance
182.14
6.02
3.42%
EZPW
EZCORP
30.65
12.62
69.99%
GDOT
Green Dot
13.17
-1.97
-13.01%
MFIN
Medallion Financial
11.98
1.79
17.57%
RM
Regional Management
31.39
-11.19
-26.27%
ATLC
Atlanticus Holdings
93.02
22.81
32.49%
World Acceptance Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
World Acceptance appoints John Calmes as new CEO
Positive
Sep 21, 2026
On September 17, 2026, World Acceptance Corporation’s board appointed long-time executive John L. Calmes Jr. as president and chief executive officer, with the appointment becoming effective September 21, 2026. Calmes, previously executive v...
Executive/Board ChangesShareholder Meetings
World Acceptance shareholders approve directors and key proposals
Positive
Aug 19, 2026
At its Annual Meeting of Shareholders held on August 19, 2026, World Acceptance Corporation reported that 4,057,996 of 4,660,413 outstanding shares were represented, establishing a quorum for the session. Shareholders voted on director elections, ...
Stock Buyback
World Acceptance Announces $50 Million Share Repurchase Program
Positive
Aug 13, 2026
On August 13, 2026, World Acceptance Corporation’s board approved a new share repurchase program authorizing the company to buy back up to $50 million of its outstanding common stock, inclusive of remaining amounts under prior authorizations...
Business Operations and StrategyFinancial Disclosures
World Acceptance Posts Strong Fiscal Q1 Profit Rebound
Positive
Jul 24, 2026
World Acceptance Corporation reported fiscal 2027 first-quarter results on July 24, 2026, showing a sharp rebound in profitability and measured loan growth. Net income rose to $6.1 million, or $1.33 per diluted share, from $1.6 million a year earl...
Business Operations and StrategyPrivate Placements and Financing
World Acceptance Expands Revolving Credit Facility with Investar Bank
Positive
Jul 1, 2026
On June 29, 2026, World Acceptance Corporation expanded its financing capacity by securing a $15 million accordion increase under its existing revolving credit agreement, with Investar Bank joining as an increasing lender. The additional commitmen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.