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1. Company Snapshot

1.a. Company Description

Regional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders in the United States.It offers small and large installment loans; and retail loans to finance the purchase of furniture, appliances, and other retail products.The company also provides insurance products, including credit life, credit accident and health, credit property, vehicle single interest, and credit involuntary unemployment insurance; collateral protection insurance; and property insurance, as well as reinsurance products.


In addition, its loans are sourced through branches, centrally managed direct mail campaigns, digital partners, and retailers, as well as its consumer website.As of February 24, 2022, the company operated through a network of approximately 350 branches in 14 states.Regional Management Corp.


was incorporated in 1987 and is headquartered in Greer, South Carolina.

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1.b. Last Insights on RM

Regional Management Corp.'s recent performance was driven by strong Q2 earnings, with EPS up 20% year-over-year. The company's quarterly earnings of $1.03 per share beat estimates, driven by record originations and revenue. Improving credit performance and an all-time best operating expense ratio also contributed to the positive results. Additionally, the company's diversified consumer finance business and solid financial metrics position it well for continued growth. Management's focus on operational efficiency and strategic initiatives is yielding results. (Source: Q2 2025 Earnings Release)

1.c. Company Highlights

2. Regional Management Corp's Q3 2025 Earnings: A Strong Performance

Regional Management Corp delivered a robust financial performance in Q3 2025, with net income reaching $14.4 million and diluted earnings per share (EPS) of $1.42, representing an 87% year-over-year improvement. The company's revenue grew to $165 million, a record high, driven by a $93 million sequential increase in its portfolio, pushing ending net receivables past the $2 billion milestone. The operating expense ratio improved to 12.8%, an all-time best, reflecting the company's efficient cost management. The actual EPS came in at $1.42, slightly below estimates of $1.46.

Publication Date: Nov -29

📋 Highlights
  • Net Income Surge:: Q3 net income reached $14.4M, up 87% YoY, with diluted EPS hitting $1.42.
  • Portfolio Milestone:: Ending net receivables surpassed $2B, driven by $93M sequential growth.
  • Revenue Record:: Total revenue hit $165M, while operating expense ratio fell to a record 12.8%.
  • Originations Growth:: Q3 originations reached $522M, +23% YoY, fueled by digital and auto-secured loans.
  • Capital Allocation:: $0.30 dividend declared, 154K shares repurchased at $32.56/share in Q3.

Revenue Growth and Portfolio Performance

The company's total originations reached a record high of $522 million in Q3 2025, up 23% year-over-year, driven by strong performance from its digital channel, auto-secured product, and de novo branches. The portfolio grew by $233 million or 13% year-over-year, keeping the company on track to meet its targeted portfolio growth rate of at least 10% in 2025. The 30-plus day delinquency rate was 7%, a 10 basis point increase year-over-year, but improved by 30 basis points after adjusting for the prior year's hurricane impact.

Guidance and Outlook

Regional Management Corp expects net income of roughly $12 million in Q4 2025, with ending net receivables increasing by $60 million to $70 million sequentially. The total revenue yield is expected to be 32.2% in Q4 2025, a 90 basis point sequential decrease due to seasonality and product mix. The company's guidance suggests a continued strong performance, albeit with some seasonal fluctuations.

Valuation and Dividend Yield

With a P/E Ratio of 9.32 and a Dividend Yield of 3.15%, Regional Management Corp appears to be reasonably valued. The company's Return on Equity (ROE) of 10.84% indicates a decent level of profitability. Analysts estimate next year's revenue growth at 9.9%, suggesting a stable outlook for the company. The stock's current valuation multiples, including a P/B Ratio of 1.0 and an EV/EBITDA of 12.34, suggest that the market has a relatively neutral view of the company's prospects.

3. NewsRoom

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Roxmore Resources and Taura Gold Complete Previously Announced Plan of Arrangement

Nov -20

Source: feeds.newsfilecorp.com

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Acadian Asset Management LLC Purchases 8,105 Shares of Regional Management Corp. $RM

Nov -14

Source: defenseworld.net

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Regional Management Corp. Announces Grant of Employment Inducement Awards

Nov -10

Source: businesswire.com

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Regional Management Corp. (RM) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Regional Management (RM) Misses Q3 Earnings Estimates

Nov -06

Source: zacks.com

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Regional Management Corp. Names Lakhbir Lamba as President, Chief Executive Officer, and Director

Nov -05

Source: businesswire.com

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Regional Management Corp. Announces Third Quarter 2025 Results

Nov -05

Source: businesswire.com

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Regional Management Corp. Completes $253 Million Asset-Backed Securitization

Oct -29

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.00%)

6. Segments

Consumer Finance

Expected Growth: 12.0%

Regional Management Corp's 12.0% growth in Consumer Finance is driven by increasing demand for personal loans, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved risk management, and competitive pricing have contributed to its growth momentum.

7. Detailed Products

Installment Loans

Regional Management Corp. offers installment loans that provide customers with a fixed rate and fixed monthly payments over a set period of time.

Lines of Credit

Regional Management Corp. offers lines of credit that provide customers with access to a revolving credit limit, allowing them to borrow and repay funds as needed.

Auto Loans

Regional Management Corp. offers auto loans that provide customers with financing for new or used vehicles.

Retail Loans

Regional Management Corp. offers retail loans that provide customers with financing for purchases from participating retailers.

Mortgage Loans

Regional Management Corp. offers mortgage loans that provide customers with financing for purchasing or refinancing a home.

8. Regional Management Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Regional Management Corp. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified product offerings and strong brand recognition.

Bargaining Power Of Customers

Regional Management Corp. faces significant bargaining power from its customers, who have numerous alternatives and can negotiate prices and terms.

Bargaining Power Of Suppliers

Regional Management Corp. has a diverse supplier base, which reduces the bargaining power of individual suppliers, and the company's scale and purchasing power also mitigate supplier bargaining power.

Threat Of New Entrants

While there are barriers to entry in the industry, Regional Management Corp. faces a moderate threat from new entrants, particularly from fintech companies and digital lenders.

Intensity Of Rivalry

Regional Management Corp. operates in a highly competitive industry, with numerous players competing for market share, which leads to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 83.58%
Debt Cost 6.14%
Equity Weight 16.42%
Equity Cost 11.12%
WACC 6.96%
Leverage 508.94%

11. Quality Control: Regional Management Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 8.3

Quality: 7.0

Yield: 10.0

Momentum: 4.0

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A-Score: 6.5/10

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Yield: 8.0

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Quality: 4.6

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Growth: 8.2

Quality: 5.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.1$

Current Price

37.1$

Potential

-0.00%

Expected Cash-Flows