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1. Company Snapshot

1.a. Company Description

Atlanticus Holdings Corporation provides credit and related financial services and products to customers the United States.It operates in two segments, Credit as a Service, and Auto Finance.The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, educational services, and home-improvements by partnering with retailers and service providers.


In addition, it offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms.The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business.This segment also provides floor plan financing and installment lending products.


Further, the company invests in and services portfolios of credit card receivables.Atlanticus Holdings Corporation was founded in 1996 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on ATLC

Negative drivers behind Atlanticus Holdings Corporation's recent performance include the absence of a recent earnings beat, despite its impressive earnings surprise history. The company's dividend announcement, while a positive event, may not be enough to offset concerns over its financial performance. Additionally, the lack of sales or acquisition activity, and no new product announcements, may be contributing to the negative sentiment.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Atlanticus Announces Approval of Quarterly Preferred Stock Dividend

Nov -12

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Atlanticus Holdings Corporation (ATLC) Tops Q3 Earnings and Revenue Estimates

Nov -10

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PROG Holdings Announces Sale of Vive Credit Card Receivables Portfolio to Atlanticus

Oct -22

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Strength Seen in Atlanticus (ATLC): Can Its 5.5% Jump Turn into More Strength?

Sep -16

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Atlanticus Holdings Corporation (ATLC) Hit a 52 Week High, Can the Run Continue?

Sep -16

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Atlanticus Announces Acquisition of Mercury Financial LLC

Sep -11

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Atlanticus Announces Approval of Quarterly Preferred Stock Dividend

Aug -21

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Atlanticus Holdings Corporation (ATLC) Tops Q2 Earnings and Revenue Estimates

Aug -08

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.15%)

6. Segments

Credit as a Service

Expected Growth: 12.3%

Atlanticus Holdings Corporation's 12.3% growth in Credit as a Service is driven by increasing demand for digital lending solutions, expansion into new markets, strategic partnerships, and investments in technology and data analytics, enabling efficient credit decisioning and risk management.

Auto Finance

Expected Growth: 7.88%

Atlanticus Holdings Corporation's 7.88% growth in Auto Finance is driven by increasing demand for used vehicles, expansion of online lending platforms, and strategic partnerships with dealerships. Additionally, the company's focus on subprime lending and diversified funding sources have contributed to its growth momentum.

7. Detailed Products

Point-of-Sale Financing

Atlanticus Holdings Corporation offers point-of-sale financing solutions that enable consumers to purchase products or services they need, while allowing them to pay over time.

Credit Cards

Atlanticus Holdings Corporation issues credit cards that provide consumers with access to credit for everyday purchases, with flexible repayment terms.

Installment Loans

Atlanticus Holdings Corporation offers installment loans that provide consumers with access to cash for unexpected expenses or large purchases, with fixed repayment terms.

Auto Finance

Atlanticus Holdings Corporation provides auto finance solutions that enable consumers to purchase or refinance vehicles, with flexible repayment terms.

8. Atlanticus Holdings Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Atlanticus Holdings Corporation is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry in the industry, making it possible for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the high level of competition in the industry, with many companies competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 82.21%
Debt Cost 6.80%
Equity Weight 17.79%
Equity Cost 13.34%
WACC 7.97%
Leverage 462.20%

11. Quality Control: Atlanticus Holdings Corporation 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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Atlanticus

A-Score: 5.7/10

Value: 7.5

Growth: 8.6

Quality: 5.8

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Enova International

A-Score: 5.5/10

Value: 6.6

Growth: 8.2

Quality: 5.3

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

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World Acceptance

A-Score: 5.3/10

Value: 7.6

Growth: 5.3

Quality: 6.7

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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NerdWallet

A-Score: 4.5/10

Value: 5.2

Growth: 7.1

Quality: 7.6

Yield: 0.0

Momentum: 3.5

Volatility: 3.3

1-Year Total Return ->

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CPI Card Group

A-Score: 3.8/10

Value: 8.4

Growth: 6.4

Quality: 4.7

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Nicholas Financial

A-Score: 3.3/10

Value: 8.2

Growth: 0.3

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

59.39$

Current Price

59.39$

Potential

-0.00%

Expected Cash-Flows