| 2015 | 2018 | 2019 (projected) | World Acceptance Consolidated Income | 87,395,557 | 78,656,001 | 68,700,242 | World Acceptance Direct Expenses | 123,598,318 | 148,426,578 | 126,681,659 |
Will World Acceptance retake control?
 | By Rifka Kats | Macroaxis Story |
This post will digest World Acceptance. I will look into why we are still optimistic in anticipation of a recovery. World Acceptance Piotroski F Score is 7 - Strong. Given the investment horizon of 30 days, World Acceptance is expected to generate 2.45 times more return on investment than the market. However, the company is 2.45 times more volatile than its market benchmark. It trades about 0.22 of its potential returns per unit of risk. The market is currently generating roughly 0.15 per unit of risk. Macroaxis considers World Acceptance very steady given 1 month investment horizon. World Acceptance shows Sharpe Ratio of 0.2197 which attests that the company had 0.2197% of return per unit of risk over the last 1 month. Our philosophy towards determining volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for World Acceptance which you can use to evaluate future volatility of the organization. Please utilize World Acceptance Market Risk Adjusted Performance of 1.95, Mean Deviation of 1.48 and Downside Deviation of 1.5 to validate if our risk estimates are consistent with your expectations.
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Reviewed by Michael Smolkin
WORLD ACCEPTANCE currently holds roughly 9.34M in cash with 244.66M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.1. The firm dividends can provide a clue to current valuation of the stock. The entity is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Now, lets check World Acceptance Z Score. World Acceptance Corporation has Z Score of 3.6. This is 49.38% higher than that of the Financial Services sector, and 9.32% lower than that of Credit Services industry, The Z Score for all stocks is 58.72% higher than the firm.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as World Acceptance. Your research has to be compared to or analyzed against World Acceptance's peers to derive any actionable benefits. When done correctly, World Acceptance's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in World Acceptance.
Investing in World Acceptance, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding World Acceptance along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of World Acceptance's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is World Acceptance's Liquidity
World Acceptance financial leverage refers to using borrowed capital as a funding source to finance World Acceptance ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. World Acceptance financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to World Acceptance's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of World Acceptance's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between World Acceptance's total debt and its cash.
World Acceptance Gross Profit
World Acceptance Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing World Acceptance previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show World Acceptance Gross Profit growth over the last 10 years. Please check World Acceptance's gross profit and other fundamental indicators for more details.
World Acceptance Correlation with Peers
Investors in World can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in World Acceptance. Diversification will allow for the same portfolio return with reduced risk. The correlation table of World Acceptance and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities World is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of World for more details
An Additional Perspective On World Acceptance
The latest increase in of World Acceptance Corporation short term price appreciation may raise some interest from investors as it closed today at a share price of 164.15 on 72250.000 in trading volume. The company directors and management have been quite successful with maneuvering the fund at opportune times to take advantage of all market conditions in June. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.7668. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. World Acceptance maintains ebitda of 115.95m. World Acceptance is trading at 166.32 which is 0.53 percent decrease. Opened at 166.32. World Acceptance Tangible Asset Value is increasing over the last 5 years. Also, World Acceptance Revenue Per Employee is increasing over the last 5 years. The previous year value of World Acceptance Revenue Per Employee was 137,867.
The bottom line, our final buy/sell recommendation on the firm is Strong Hold. We believe World Acceptance is overvalued with low odds of distress for the next two years.
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