Regional Management, headquartered in Greer, South Carolina, provides consumer financial services, including small and large installment loans, and employs 2,081 people. The company went public on March 28, 2012, under the name Regional Finance.
Based on our analysis, Regional Management (RM) is currently rated as undervalued at 4 out of 5 stars by Cashu. This valuation is supported by several financial ratios that indicate potential for growth and profitability relative to its sector.
The company has a Price-to-Earnings (PE) Ratio of 8.18, significantly lower than the sector average of 11.69. A lower PE ratio suggests that RM's stock may be undervalued compared to its earnings potential. Additionally, the Price-to-Book (PB) Ratio stands at 0.97, while the sector average is 1.12, further indicating that the market may not fully recognize the intrinsic value of RM's assets.
Although RM's Net Profit Margin is lower at 7.01 compared to the sector average of 18.54, it is important to note that the company has a strong Return on Equity (ROE) of 11.55, significantly higher than the sector's 8.14. This suggests that RM is effectively generating profit from its equity, providing investors with a strong return on their investment.
Furthermore, the company offers a Dividend Yield of 3.60, above the sector average of 3.08, which can be appealing for income-focused investors. Finally, RM's Return on Assets Ratio is 2.16, compared to the sector's 0.88, indicating that the company is efficiently utilizing its assets to generate profit.
This combination of factors indicates that Regional Management is undervalued relative to its peers, offering potential for future growth.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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