World Acceptance Intrinsic Value Calculation – WORLD ACCEPTANCE Reports Financial Results for Q1 of FY2024
August 9, 2023
☀️Earnings Overview
On July 21 2023, WORLD ACCEPTANCE ($NASDAQ:WRLD) announced their financial results for the first quarter of FY2024 ending on June 30 2023. Total revenue for Q1 decreased by 13.2% to USD 127.1 million compared to the same period in the prior year. However, net income for the quarter significantly improved to USD 9.5 million, compared to the -8.8 million reported a year earlier.
Share Price
The stock opened at $144.0 and closed at $150.9, soaring by an impressive 10.3% from its prior closing price of 136.8. This positive financial report has resulted in a surge of investor confidence in WORLD ACCEPTANCE, with many analysts praising the company’s strong performance in the quarter. Their outlook for the rest of the year is similarly positive, with some expecting WORLD ACCEPTANCE’s stock price to continue to rise in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for World Acceptance. More…
| Total Revenues | Net Income | Net Margin |
| 546.74 | 39.57 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for World Acceptance. More…
| Operations | Investing | Financing |
| 291.55 | -180.58 | -113.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for World Acceptance. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.11k | 717.09 | 61.78 |
Key Ratios Snapshot
Some of the financial key ratios for World Acceptance are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.1% | – | – |
| FCF Margin | ROE | ROA |
| 52.3% | 8.4% | 2.9% |
Analysis – World Acceptance Intrinsic Value Calculation
At GoodWhale, we have conducted an in-depth analysis of WORLD ACCEPTANCE‘s financials. Our proprietary Valuation Line indicates that the fair value of WORLD ACCEPTANCE’s share is around $146.1. Currently, WORLD ACCEPTANCE stock is traded at $150.9, which is slightly overvalued by 3.3%. To make an informed investment decision, investors should take a closer look at the company’s fundamentals and consider the risks associated with the stock. More…
Peers
In recent years, World Acceptance Corp has faced stiffer competition from its rivals Regional Management Corp, Mega Fin (India) Ltd, and Dunxin Financial Holdings Ltd. All three companies have been expanding their lending operations and have been aggressively marketing their products and services. World Acceptance Corp has responded by expanding its own lending operations and increasing its marketing efforts. The competition between these four companies has been intense, and it is likely to continue to be so in the future.
– Regional Management Corp ($NYSE:RM)
Regional Management Corp. is a holding company that provides consumer finance solutions. It offers personal loans, auto loans, and retail merchandise financing solutions to customers through its branch network. The company was founded in 1987 and is headquartered in Greenville, South Carolina.
– Mega Fin (India) Ltd ($BSE:532105)
Fin (India) Ltd has a market cap of 72.52M as of 2022, a Return on Equity of 2.77%. The company is engaged in the business of providing financial services including credit, insurance, savings, and investment products to individuals and small businesses.
– Dunxin Financial Holdings Ltd ($NYSEAM:DXF)
Dunxin Financial Holdings Ltd is a company that provides financial services. It has a market cap of 5.74M as of 2022. The company offers a range of services including credit products, investment banking, and asset management.
Summary
Investors in WORLD ACCEPTANCE were pleased to see a positive first quarter in the company’s FY 2024, as total revenue for the quarter ending July 21 2023 was USD 127.1 million, down 13.2% from the same period last year. Net income for the quarter was reported to be USD 9.5 million, a significant improvement from the -8.8 million reported the year before. This led to a positive reaction in the stock price, suggesting that investors are optimistic about the company’s future prospects. With this strong quarter, it appears that WORLD ACCEPTANCE is well on their way to regaining investor confidence.
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