Regional Management Corp. (RM) AI Stock Analysis

Regional Management Corp., founded in 1987 and headquartered in Greer, South Carolina, operates in the consumer finance sector. The company specializes in installment loan products for individuals who may have limited access to traditional credit sources like banks and credit card companies. Its financial solutions include small and large installment loans, as well as retail loans for purchasing furniture, appliances, and other retail goods. Regional Management also provides complementary insurance products, including credit life, accident and health, property, vehicle single interest, involuntary unemployment, collateral protection, and reinsurance. Sourcing occurs through branches, direct mail, digital partnerships, retailers, and its consumer website.

Regional Management grew annual revenue from $428.4M in FY2021 to $645.6M in FY2025, recording a 5-year revenue CAGR of 11.5%. Net income declined from $88.7M in FY2021 to $16.0M in FY2023, before recovering to $41.2M in FY2024 and $44.4M in FY2025. Over the same span, operating margin compressed from 26.3% in FY2021 to 3.8% in FY2023, then rebounded to 12.4% in FY2025. In the trailing twelve months, revenue stood at $647.8M with a profit margin of 7.2% and EPS of $4.75. For the quarter ended June 30, 2026, revenue increased 6.0% year-over-year, while earnings fell 17.5%.

As of June 30, 2026, Regional Management held $6.8M in cash and short-term investments against $1.72B in total debt, leading to net debt of $1.71B. Shareholders' equity was $378.3M, yielding a debt-to-equity ratio of 4.54, while the current ratio stood at 64.04. In FY2025, the company generated $309.1M in operating cash flow and $292.0M in free cash flow. Capital expenditures totaled $17.1M for the year. Cash allocation included $24.0M deployed toward share buybacks and $11.5M paid in dividends, contributing to a 5.6% reduction in share count over five years.

RM trades at a trailing P/E of 7.2x and a forward P/E of 6.5x, below the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. Its price-to-sales of 0.5x is also lower than the peer median of 3.2x, while enterprise value is $2.03B compared to a market cap of $317.1M. Over the past year, RM's stock fell 8.3%, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year horizon, the stock dropped 28.6%, compared to an 83.0% gain for SPY.

Regional Management pays a quarterly dividend totaling an annualized $1.20 per share, representing a 3.49% dividend yield at its recent price of $34.37. The payout ratio is 25.3%, and the company has paid dividends for 7 consecutive years. Its 5-year annualized dividend growth rate is 43.1%, with its most recent ex-dividend date occurring on August 19, 2026.

Wall Street coverage includes 2 Strong Buy ratings and 1 Buy rating, with no Hold or Sell recommendations. The mean price target is $43.83, representing a 27.5% upside over the last close of $34.37. For the fiscal year ending December 31, 2026, analysts estimate EPS of $4.92 on revenue of $689.7M. Regional Management beat EPS estimates in 3 of the last 4 quarters, and its next earnings release is scheduled for October 28, 2026.

This page is an AI-written research summary of Regional Management Corp. (RM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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