World Acceptance Corp (WRLD)
NASDAQ:WRLD
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World Acceptance
(NASDAQ:WRLD)
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Rating:61Neutral
Price Target:
$177.00
▲(27.38% Upside)
Action:Reiterated
Date:06/05/26
The score is driven primarily by solid cash generation but offset by volatile profitability and balance sheet data inconsistency. Technicals are supportive with a clear uptrend, while valuation is moderate (P/E ~22.7 with no dividend). Recent corporate events are mixed, with added covenant flexibility but elevated leadership-transition risk.
Positive Factors
Cash generation
Consistent operating and free cash flow provides durable internal financing for loan book growth, reserve funding, and debt servicing. Strong cash conversion reduces reliance on external capital, supports reinvestment in origination and technology, and cushions earnings variability over the medium term.
Negative Factors
Volatile profitability
Earnings have shown material year‑to‑year swings driven by changing provisions, compensation and charge‑offs. A decline in net income despite higher revenue points to margin sensitivity to credit costs and operating items, making earnings less predictable across economic cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating and free cash flow provides durable internal financing for loan book growth, reserve funding, and debt servicing. Strong cash conversion reduces reliance on external capital, supports reinvestment in origination and technology, and cushions earnings variability over the medium term.
Read all positive factors
World Acceptance (WRLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$776.33M
Dividend YieldN/A
Average Volume (3M)67.38K
Price to Earnings (P/E)22.7
Beta (1Y)1.17
Revenue Growth3.70%
EPS Growth-55.43%
CountryUS
Employees2,872
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)7.40
Shares Outstanding4,640,323
10 Day Avg. Volume68,204
30 Day Avg. Volume67,381
Financial Highlights & Ratios
PEG Ratio-0.34
Price to Book (P/B)<0.01
Price to Sales (P/S)1.16
P/FCF Ratio<0.01
Enterprise Value/Market Cap1.89
Enterprise Value/Revenue2.51
Enterprise Value/Gross Profit3.59
Enterprise Value/Ebitda23.31
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)10.73
Revenue Forecast (FY)$616.30M
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 pro...
How the Company Makes Money
null...
World Acceptance Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful portfolio and business improvements—strong new-customer acquisition (16% higher origination), 25% higher new-customer outstanding ledger, 5.4% organic customer growth, 2.4% organic ledger growth, and an 84 bps increase in yields—supported by better early credit performance (first-pay defaults ~19% lower). Near-term profitability is pressured by an incremental ~$8M provision for new customers and elevated compensation and personnel expenses associated with strategic investments and temporary overstaffing. Management outlined corrective actions (expected reduction in incentive comp starting Q4 and planned 3–5% branch headcount reductions) and reported robust early tax-season trends and significant share repurchases. On balance, the positive growth, improving credit metrics, yield expansion, and capital return actions outweigh the identifiable near-term headwinds.Positive Updates
New Customer Origination and Outstanding Ledger Growth
Originated 16% more new customer volume in the quarter and ended the quarter with ~25% more outstanding new-customer ledger versus the same quarter last year. The quarter had the highest new-customer acquisition since Q3 2021, and early performance indicates these are performing in line with expectations.
Negative Updates
Higher Provision for Loan Losses Related to New Customers
The 25% increase in the new-customer outstanding portfolio required an incremental provision of approximately $8.0 million versus the same quarter last year, pressuring near-term earnings.
Read all updates
Q3-2026 Updates
Positive
Negative
New Customer Origination and Outstanding Ledger Growth
Originated 16% more new customer volume in the quarter and ended the quarter with ~25% more outstanding new-customer ledger versus the same quarter last year. The quarter had the highest new-customer acquisition since Q3 2021, and early performance indicates these are performing in line with expectations.
Read all positive updates
Company Guidance
Management's guidance emphasized continued portfolio momentum and yield improvement, noting new-customer originations were up 16% in the quarter and new-customer outstanding ledger was up 25% (which in the comparable quarter required roughly an $8 million incremental provision), first-pay defaults on the recent vintage are ~19% lower versus the prior high-volume year, and yields improved about 84 basis points year-over-year; organic customer growth was ~5.4% YoY (versus 2.2% last year and 5.6% in FY2022), organic ledger growth was 2.4% YoY (vs. −2.4% last year), average outstanding loan balances fell ~2.5% YoY, and management expects continued yield gains from higher state rates, tighter underwriting/credit limits, and better retention—additionally, they have repurchased nearly 600,000 shares (reducing share count ~11% in the first nine months), have over $60 million repurchase capacity remaining (~9% of shares at yesterday’s close, targeting roughly 20% this year), anticipate incentive and share‑based comp to ease starting in Q4, plan 3–5% headcount reductions, and expect a stronger tax‑filing season despite weather impacts in about 10 states.World Acceptance Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
47
Neutral
Cash Flow
68
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 585.74M | 564.84M | 573.21M | 616.55M | 585.19M |
| Gross Profit | 582.56M | 395.63M | 368.01M | 306.62M | 365.55M |
| EBITDA | 95.26M | 164.97M | 110.30M | 38.06M | 77.25M |
| Net Income | 35.01M | 89.74M | 77.35M | 21.23M | 53.92M |
Balance Sheet | |||||
| Total Assets | 1.05B | 1.01B | 1.06B | 1.12B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 5.11M | 9.73M | 11.84M | 16.51M | 19.24M |
| Total Debt | 661.19M | 525.56M | 577.95M | 679.00M | 779.85M |
| Total Liabilities | 703.12B | 568.15M | 631.92M | 732.09M | 845.27M |
| Stockholders Equity | 351.01B | 439.48M | 424.43M | 385.23M | 373.02M |
Cash Flow | |||||
| Free Cash Flow | 255.48B | 250.48M | 259.85M | 285.73M | 266.38M |
| Operating Cash Flow | 259.36B | 254.16M | 265.78M | 291.55M | 272.45M |
| Investing Cash Flow | -232.88B | -152.75M | -135.14M | -180.58M | -451.89M |
| Financing Cash Flow | -6.83B | -103.52M | -135.31M | -113.70M | 182.93M |
World Acceptance Technical Analysis
Positive
138.95
Price Trends
150.25
Positive
141.34
Positive
148.88
Positive
Market Momentum
5.32
Negative
64.61
Neutral
74.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRLD, the sentiment is Positive. The current price of 138.95 is below the 20-day moving average (MA) of 159.03, below the 50-day MA of 150.25, and below the 200-day MA of 148.88, indicating a bullish trend. The MACD of 5.32 indicates Negative momentum. The RSI at 64.61 is Neutral, neither overbought nor oversold. The STOCH value of 74.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRLD.
World Acceptance Risk Analysis
World Acceptance disclosed 46 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.97B | 13.44 | 13.94% | ― | 22.81% | 47.41% | |
69 Neutral | $228.01M | 5.58 | 9.85% | 4.44% | 9.67% | -6.40% | |
69 Neutral | $330.85M | 6.75 | 13.16% | 2.99% | 10.51% | 53.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $717.57M | -9.96 | -7.74% | ― | 18.96% | -1025.15% | |
61 Neutral | $776.33M | 22.67 | 6.37% | ― | 3.70% | -55.43% | |
59 Neutral | $1.27B | 9.43 | 21.67% | ― | 68.59% | 30.27% |
* Financial Sector Average
WRLD
World Acceptance
167.30
9.69
6.15%
EZPW
EZCORP
31.95
18.24
133.04%
GDOT
Green Dot
12.66
2.39
23.27%
MFIN
Medallion Financial
9.56
0.40
4.36%
RM
Regional Management
35.93
9.01
33.46%
ATLC
Atlanticus Holdings
84.10
32.19
62.01%
World Acceptance Corporate Events
Executive/Board Changes
World Acceptance Announces Interim CEO Transition and Succession
Neutral
Jun 4, 2026
On June 3, 2026, World Acceptance Corporation and Interim President and Chief Executive Officer Janet L. Matricciani agreed to end her interim role, with the company emphasizing that the departure did not stem from any dispute over operations, pol...
Business Operations and StrategyPrivate Placements and Financing
World Acceptance Modifies Credit Agreement Covenant for 2026
Positive
May 26, 2026
On May 22, 2026, World Acceptance Corporation agreed with Bank of Montreal and other lenders to a consent and limited modification of its fixed charge coverage ratio covenant under its revolving credit agreement dated July 22, 2025. The temporary ...
Business Operations and StrategyFinancial Disclosures
World Acceptance Highlights Q4 2026 Results and Growth Shift
Neutral
Apr 30, 2026
World Acceptance reported fiscal fourth-quarter 2026 results on April 30, 2026, highlighting a strategic shift from aggressive tightening to targeted growth that has produced three consecutive quarters of year-over-year loan expansion. Gross loans...
Executive/Board Changes
World Acceptance Names Interim CEO After Leadership Resignation
Negative
Apr 15, 2026
On April 10, 2026, World Acceptance Corporation announced that President and CEO R. Chad Prashad resigned from his executive roles and board seat, with the departure characterized as a resignation to pursue other opportunities and treated as a ter...
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.