Atlanticus Holdings reports $1.41 GAAP EPS and $277.4 million in revenue for Q3

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Atlanticus Holdings Intrinsic Value – Atlanticus Holdings ($NASDAQ:ATLC) Inc. is a financial services company with a focus on the subprime credit market. It offers a variety of products and services including credit cards, loans, and financial education. The company attributes its strong performance to continued growth in its credit card and loan businesses.

Looking ahead, Atlanticus Holdings Inc. is focused on continuing to grow its business and expanding its reach into new markets. The company is confident that its strong performance will continue in the quarters to come.

Earnings

This is a slight decrease from the company’s earnings and revenue in the same quarter of the previous fiscal year. Despite this decrease, Atlanticus Holdings‘ total revenue has grown steadily over the past three years, reaching $386.5 million in the latest quarter. The company’s net income has also grown over this period, though it has fluctuated slightly from year to year.

Market Price

Despite this, their stock opened at $26.5 and closed at $25.8, down by 1.4% from the previous closing price of $26.1. It is possible that investors are worried about the company’s future prospects in light of the current global situation.

VI Analysis – Atlanticus Holdings Intrinsic Value

The intrinsic value of a stock is a measure of its long-term potential. A company’s fundamentals, such as its earnings power, growth prospects, and balance sheet strength, are the most important determinants of its intrinsic value. The VI Line, a tool developed by Value Investors Club, simplifies the process of calculating a stock’s intrinsic value by taking into account a company’s fundamentals. The VI Line values a stock based on its earnings power, growth prospects, and balance sheet strength. Based on the VI Line, the intrinsic value of ATLANTICUS HOLDINGS shares is around $34.8.

However, the stock is currently trading at $25.8, which means it is undervalued by 26%.

VI Peers

In recent years, the competition between Atlanticus Holdings Corp and its main competitors – ECN Capital Corp, Wealthy Way Group Ltd, and Quanzhou Huixin Micro-credit Co Ltd – has intensified. While Atlanticus Holdings Corp has been able to maintain its position as the market leader, its competitors have been closing the gap, thanks to their strong focus on innovation and customer service.

– ECN Capital Corp ($TSX:ECN)

ECN Capital Corp is a Canada-based company, which is engaged in providing financing solutions for businesses operating in a range of industries. The company operates through four segments: Equipment Finance, Rail Finance, Aviation Finance and Corporate. The Equipment Finance segment provides financing solutions to businesses for the purchase of equipment. The Rail Finance segment provides financing solutions to railroads and other businesses for the purchase of locomotives and rolling stock. The Aviation Finance segment provides financing solutions to businesses for the purchase of aircraft. The Corporate segment includes the company’s central operations.

– Wealthy Way Group Ltd ($SEHK:03848)

Wealthy Way Group Ltd is a publicly traded company with a market capitalization of 964.55M as of 2022. The company has a ROE of 7.02%. Wealthy Way Group Ltd is engaged in the business of providing financial planning and investment advisory services to individuals, families and businesses.

– Quanzhou Huixin Micro-credit Co Ltd ($SEHK:01577)

Quanzhou Huixin Micro-credit Co Ltd is a Chinese micro-credit company with a market capitalization of 428.4 million as of 2022. The company offers micro-loans to small businesses and individuals in China.

Summary

Atlanticus Holdings Inc. is a provider of credit and related financial services to consumers and businesses. The Company operates through three segments: Credit Services, Auto Finance and Consumer Finance. The Credit Services segment provides a range of credit products and services to consumers and businesses.

The Auto Finance segment provides financing to consumers for the purchase of vehicles. The Consumer Finance segment provides financing to consumers for the purchase of durable goods and general purpose financing products.