World Acceptance Corp

World Acceptance Corp maintains a conservative capital structure with a debt-to-equity ratio of 0.0, indicating no reported long-term debt on the balance sheet. The company holds $6.1 million in cash and equivalents against total assets of $1.05 billion. Liquidity is assessed as low, though the company generates robust operating cash flow of $259.4 million and free cash flow of $255.5 million. The firm adheres to strict financial covenants, including a minimum tangible net worth of $305.0 million and a minimum liquidity amount of $35.0 million.

Profitability metrics show a return on equity of 9.85% and a return on assets of 3.28%. The company reported net income of $34.6 million on revenue of $585.2 million for the fiscal year. The valuation snapshot indicates a price-to-earnings ratio of 27.13 and a price-to-book ratio of 2.76. Without cohort median data provided, these returns are evaluated in isolation against the company's historical performance and industry norms for consumer finance.

Revenue concentration is driven by the company's core activity of offering installment loans and related credit insurance. The business exhibits strong seasonality, with the highest loan demand occurring from October to December (the third fiscal quarter) and the lowest demand from January to March (the fourth fiscal quarter). This seasonal pattern impacts cash flow timing and loan repayment cycles throughout the fiscal year.

Growth trajectory analysis is limited by the absence of historical period data in the input. The company has continuously operated since July 1962, establishing a long-term presence in the small-loan market. Current revenue stands at $585.2 million, but year-over-year trends cannot be quantified without multi-year historical data.

Risk assessment highlights high dilution risk, driven by a diluted share count of 5.03 million compared to a basic share count of 4.66 million. This discrepancy suggests significant stock-based compensation or convertible instruments. Key flags indicate that source documents mention dilution or offering risk. The company maintains $18.4 million in aggregate remaining repurchase capacity under its current share repurchase program as of December 31, 2025.

Recent observations include partial coverage in company facts, with recent filing facts backfilling stock-based compensation data. Analyst sentiment is neutral, with a mean recommendation of 3.00 (Hold) and a mean price target of $141.00, which is below the current market price of $186.69. There are no strong buy or buy ratings, with only one hold rating recorded.

World Acceptance Corp generates best-in-class cash conversion of 7.5%, significantly outperforming the bank cohort median of 1.14%.

The company maintains a zero debt-to-equity ratio, ranking in the top quartile compared to the bank cohort median of 0.3.

Return on equity of 9.85% exceeds the bank cohort median of 6.33%, indicating above-average profitability relative to peers.

Total assets grew 4.6% year-over-year to $1.05 billion, demonstrating balance sheet expansion despite revenue headwinds.

Net income surged 195.4% year-over-year in the latest period, showing significant short-term earnings momentum.

The company faces high dilution risk, which could negatively impact shareholder value and earnings per share.

Revenue $408.2M; Net margin -0.4%.

• ▍Revenue $408.2M
• ▍Net margin -0.4%

Revenue $266.9M; Net margin -0.2%.

• ▍Revenue $266.9M
• ▍Net margin -0.2%

Revenue $132.5M; Net margin 1.0%.

• ▍Revenue $132.5M
• ▍Net margin 1.0%

Revenue $585.2M; Net margin 5.9%.

• ▍Revenue $585.2M
• ▍Net margin 5.9%

Revenue $141.6M; Net margin -0.4%.

• ▍Revenue $141.6M
• ▍Net margin -0.4%

Revenue $134.8M; Net margin -1.2%.

• ▍Revenue $134.8M
• ▍Net margin -1.2%

Revenue $132.8M; Net margin 1.2%.

• ▍Revenue $132.8M
• ▍Net margin 1.2%

Revenue $564.8M; Net margin 15.9%.

• ▍Revenue $564.8M
• ▍Net margin 15.9%