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World Acceptance
(NASDAQ:WRLD)
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Rating:63Neutral
Price Target:
$181.00
▼(-6.44% Downside)
Action:Reiterated
Date:10/23/26
The score is anchored by solid but risk-balanced financials: improved operating performance and profitability are tempered by consistently high leverage and volatile earnings/cash-flow dynamics in a credit-sensitive business. Earnings-call commentary is constructive (better credit metrics, lower provisions, disciplined expenses), but the technical picture is weak with the stock below key moving averages and negative MACD. Valuation is fair at ~19x earnings, with no dividend yield support provided.
Positive Factors
Improving Credit Quality
Improving delinquency and lower provision expense indicate that recent underwriting discipline is strengthening portfolio performance. If sustained, better credit quality can support more predictable earnings, reduce loss volatility, and give management greater flexibility to cautiously expand lending over the next several quarters.
Negative Factors
Elevated Leverage
Debt materially exceeds shareholders’ equity, leaving the company more exposed to funding pressure and credit deterioration than a less leveraged lender. High leverage can constrain capital allocation, reduce flexibility during weaker portfolio conditions, and amplify the effect of provisioning or earnings declines.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Credit Quality
Improving delinquency and lower provision expense indicate that recent underwriting discipline is strengthening portfolio performance. If sustained, better credit quality can support more predictable earnings, reduce loss volatility, and give management greater flexibility to cautiously expand lending over the next several quarters.
Read all positive factors
World Acceptance (WRLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$778.00M
Dividend YieldN/A
Average Volume (3M)55.57K
Price to Earnings (P/E)19.4
Beta (1Y)1.01
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. Volume43,428
30 Day Avg. Volume55,566
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 Cap2.12
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit4.59
Enterprise Value/Ebitda27.40
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)13.18
Revenue Forecast (FY)$613.10M
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:Oct 23, 2026
(Q2-2027)
| Next Earnings Date:Jan 15, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, with improved adjusted earnings, revenue growth, lower provision expense, better delinquency trends, improved G&A expense, and confidence in the competitive position. The main challenges were continued consumer sensitivity to gas prices, a cautious near-term growth posture, and the credit card product remaining under evaluation before potential scaling.Positive Updates
Adjusted EPS Growth Supported by Revenue and Provision Improvement
Adjusted earnings per share was $1.92 for the second quarter. Earnings benefited from a 3.2% increase in revenue and a 7.7% decrease in provision expense.
Negative Updates
Gas Prices Remain a Consumer Sensitivity
Management said gas prices have historically affected its customers. Although portfolio credit metrics are improving, management noted that it is difficult to determine precisely how gas prices are affecting current delinquency trends.
Read all updates
Q2-2027 Updates
Positive
Negative
Adjusted EPS Growth Supported by Revenue and Provision Improvement
Adjusted earnings per share was $1.92 for the second quarter. Earnings benefited from a 3.2% increase in revenue and a 7.7% decrease in provision expense.
Read all positive updates
Company Guidance
For the remainder of fiscal 2027, management said it is “well positioned,” will “maintain disciplined approach to expenses going forward,” and will continue “a cautious approach to lending”; lending is “a little looser than we were, say, in the March quarter,” but “still a lot tighter than we were at this point last year,” with the company potentially using “some of those levers to increase growth a little,” while not expecting “any dramatic change in our growth trajectory in the near term.” Management also said the credit card pilot is “probably at least a quarter or 2 away from trying to make a decision on how to scale that,” following adjusted earnings per share of $1.92, a 3.2% increase in revenue, a 7.7% decrease in provision expense, and front-end delinquency decreasing from 20% to 18.9%.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
180.88
Negative
184.95
Negative
162.75
Positive
Market Momentum
-3.27
Positive
40.56
Neutral
19.13
Positive
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 172.96, above the 50-day MA of 180.88, and above the 200-day MA of 162.75, indicating a neutral trend. The MACD of -3.27 indicates Positive momentum. The RSI at 40.56 is Neutral, neither overbought nor oversold. The STOCH value of 19.13 is Positive, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $420.78M | 23.35 | 4.95% | ― | -2.34% | ― | |
71 Outperform | $479.72M | 1.69 | 68.06% | 4.67% | 10.16% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $6.54B | 8.53 | 23.07% | 7.39% | 6.93% | 19.96% | |
65 Neutral | $4.48B | 12.60 | 26.36% | ― | 17.65% | 43.92% | |
63 Neutral | $778.00M | 19.38 | 11.00% | ― | 4.36% | -42.48% | |
63 Neutral | $309.71M | 6.74 | 12.49% | 3.57% | 9.63% | 40.75% |
* Financial Sector Average
WRLD
World Acceptance
169.66
14.66
9.45%
RM
Regional Management
34.12
-4.59
-11.86%
OMF
OneMain Holdings
57.11
4.63
8.83%
ENVA
Enova International
176.78
62.75
55.03%
OPRT
Oportun Financial
9.31
3.71
66.25%
OPFI
OppFi
5.78
-4.09
-41.44%
World Acceptance Corporate Events
Stock BuybackFinancial Disclosures
World Acceptance Returns To Profit With Strong Q2 Results
Positive
Oct 23, 2026
On Oct. 23, 2026, World Acceptance reported that for its second fiscal quarter ended Sept. 30, 2026, it swung to net income of $8.8 million, or $1.92 per diluted share, from a net loss of $1.7 million a year earlier, as total revenues rose 3.2% to...
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...
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.