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1. Company Snapshot

1.a. Company Description

World Acceptance Corporation, together with its subsidiaries, engages in small-loan consumer finance business.The company offers short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals.It also provides automobile club memberships to its borrowers; and income tax return preparation and electronic filing services.


In addition, the company markets and sells credit life, credit accident and health, credit property and auto, unemployment, and accidental death and dismemberment insurance in connection with its loans.It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders.As of March 31, 2022, it operated 1,167 branches in Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Tennessee, Texas, Utah, and Wisconsin.


World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.

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1.b. Last Insights on WRLD

World Acceptance Corporation's recent performance was negatively impacted by a quarterly loss of $0.38 per share, a significant decline from earnings of $3.99 per share a year ago. Despite a 1.5% year-over-year growth in outstanding loans, the company's financial results were affected by rising expenses. The company's Q2 2026 earnings call highlighted challenges, but noted a $51.2 million increase in outstanding loans. Additionally, a recent filing showed the Teacher Retirement System of Texas increased its stake in the company, purchasing 7,153 shares.

1.c. Company Highlights

2. World Acceptance Corporation's Q2 2026 Earnings: A Mixed Bag

World Acceptance Corporation reported a GAAP loss per share of -$0.38 for the second quarter of 2026, significantly missing analyst estimates of $1.87. The loss was largely attributed to one-time expenses, including a $3.7 million early redemption of bonds, a $1.3 million discrete tax-related expense, and a $5 million increase in provision due to new customer growth, totaling around $1.61 per share after-tax impact. Revenue growth was robust, driven by a 40% year-over-year increase in new customer origination volume. The company's portfolio yield also expanded by over 130 basis points year-over-year, indicating a healthy loan book.

Publication Date: Nov -12

📋 Highlights
  • One-Time Expenses Impact:: Total $10 million in discrete items ($3.7M bond redemption, $1.3M Mexico tax, $5M provision) reduced EPS by $1.61.
  • New Customer Growth:: 40% YoY origination volume increase with a 130 bps portfolio yield improvement and first pay default rates matching 2019–2020 levels.
  • Capital Position Improvements:: $170M bonds repurchased, $175M warehouse facility established, and $640M credit agreement enabling stock buybacks up to 100% of net income.
  • Compensation Cost Adjustments:: $5.8M Q3 comp expenses to drop $2M in Q4 and subsequent quarters; $25M personnel cost spike from grants, decreasing by $1.8M/quarter.

Operational Highlights

The company's operational performance was a bright spot, with new customer origination volume up 40% year-over-year and first pay default rates in line with historical norms. The company has also made significant improvements to its capital position, including repurchasing and canceling $170 million of its bonds and establishing a $175 million warehouse facility. As Chad Prashad mentioned, the company's marketing efforts, including bringing modeling in-house, have driven originations growth and reduced customer acquisition costs.

Valuation and Outlook

With a P/S Ratio of 0.01 and an EV/EBITDA of 11.04, the stock appears to be undervalued, considering the company's growth prospects. Analysts estimate revenue growth of 2.2% for the next year, which, although modest, suggests a stable outlook. However, the company's ROE of 9.68% and Net Debt/EBITDA of 5.25 indicate that there are still challenges ahead. The stock's current valuation multiples do not fully reflect the company's improving capital position and operational performance.

Credit Quality and Demand

The company's credit quality remains a focus, with management proactively tightening its credit box multiple times during the fiscal year. As Kyle Joseph from Stephens asked, the health of the underlying consumer is crucial, and the company has not seen major signs of weakness in its portfolio. The demand for the company's services remains strong, driven by its successful marketing efforts and improved loan approval rates.

3. NewsRoom

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World Acceptance Corporation Announces the Retirement of Chief Branch Operations Officer D. Clinton Dyer

Dec -04

Source: businesswire.com

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Teacher Retirement System of Texas Buys 7,153 Shares of World Acceptance Corporation $WRLD

Nov -05

Source: defenseworld.net

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World Acceptance Corporation (WRLD) Q2 2026 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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World Acceptance (WRLD) Reports Q2 Loss, Beats Revenue Estimates

Oct -23

Source: zacks.com

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World Acceptance Corporation Reports Fiscal 2026 Second Quarter Results

Oct -23

Source: businesswire.com

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World Acceptance Corporation Announces Second Quarter 2026 Conference Call on the Internet

Oct -16

Source: businesswire.com

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World Acceptance Posts Q1 Profit Drop

Jul -25

Source: fool.com

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World Acceptance Corporation (WRLD) Q1 2026 Earnings Call Transcript

Jul -24

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.88%)

6. Segments

Consumer Finance

Expected Growth: 7.88%

World Acceptance Corporation's 7.88% growth in Consumer Finance is driven by increasing demand for short-term loans, expansion into new markets, and strategic partnerships. Additionally, the company's focus on providing affordable financial solutions to underserved communities and its efficient online lending platform have contributed to its growth.

7. Detailed Products

Installment Loans

Short-term loans that provide customers with immediate access to cash, with repayment terms ranging from 4 to 12 months.

Line of Credit

A revolving credit line that allows customers to borrow and repay funds as needed, with flexible repayment terms.

Refinancing Loans

Loans that allow customers to refinance existing debts, consolidating multiple payments into one loan with a single interest rate and repayment term.

Retail Sales Financing

Financing options for customers purchasing goods and services from participating retailers, with flexible repayment terms.

8. World Acceptance Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

World Acceptance Corporation operates in the financial services industry, which is highly competitive. However, the company's focus on providing consumer loans and credit insurance products helps to differentiate it from other financial institutions. While there are substitutes available, such as credit unions and online lenders, World Acceptance Corporation's established brand and extensive branch network help to mitigate the threat of substitutes.

Bargaining Power Of Customers

World Acceptance Corporation's customers are primarily individuals and small businesses, which have limited bargaining power. The company's products and services are designed to meet the specific needs of these customers, and the company has a strong reputation for providing personalized service. As a result, customers are less likely to negotiate prices or demand customized products.

Bargaining Power Of Suppliers

World Acceptance Corporation's suppliers are primarily vendors that provide goods and services to support the company's operations. The company has a diverse supplier base, and no single supplier has significant bargaining power. Additionally, the company's scale and reputation help to negotiate favorable terms with suppliers.

Threat Of New Entrants

The financial services industry is highly regulated, and new entrants face significant barriers to entry. However, the rise of fintech companies and online lenders has increased competition in the industry. World Acceptance Corporation's established brand and extensive branch network help to mitigate the threat of new entrants, but the company must continue to innovate and adapt to changing market conditions.

Intensity Of Rivalry

The financial services industry is highly competitive, and World Acceptance Corporation operates in a crowded market. The company faces competition from traditional banks, credit unions, and online lenders, as well as fintech companies and other financial institutions. The company's ability to differentiate itself through its products and services, as well as its strong brand and extensive branch network, helps to mitigate the 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 54.99%
Debt Cost 10.73%
Equity Weight 45.01%
Equity Cost 11.02%
WACC 10.86%
Leverage 122.19%

11. Quality Control: World Acceptance Corporation passed 7 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

Stock-Card
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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Stock-Card
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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Stock-Card
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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Stock-Card
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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Stock-Card
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 ->

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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

143.73$

Current Price

143.73$

Potential

0.00%

Expected Cash-Flows