Yahoo Finance Should You Investigate Regional Management Corp. (NYSE:RM) At US$28.31?
Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!
Regional Management Corp. (NYSE:RM), which is in the consumer finance business, and is based in United States, received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Regional Management’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for Regional Management
What’s the opportunity in Regional Management?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 8.65% above my intrinsic value, which means if you buy Regional Management today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $26.06, there’s only an insignificant downside when the price falls to its real value. What’s more, Regional Management’s share price may be more stable over time (relative to the market), as indicated by its low beta.
Can we expect growth from Regional Management?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 67% over the next couple of years, the future seems bright for Regional Management. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? It seems like the market has already priced in RM’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on RM, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Regional Management. You can find everything you need to know about Regional Management in the latest infographic research report. If you are no longer interested in Regional Management, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. On rare occasion, data errors may occur. Thank you for reading.
