World Acceptance Corporation (WRLD)
NASDAQFinancialsFinancial - Credit ServicesSnapshot 2026-09-04
$190.54-0.59%
Close 2026-09-04 · 1-day change
NASDAQFinancialsFinancial - Credit ServicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
World Acceptance grows loans by 4.4% yearly and cuts delinquency to 17%. Earnings per share near $11 next year show steady profit. The company manages credit quality well despite CEO changes.
Earnings guidance fell to $6.97 per share, down from $7.7 last quarter. CEO turnover and credit covenant risks raise concerns. Revenue growth may slow below the 8.1% analysts expect.
Price is about 4% above our fair value near $192. Analysts expect 8% revenue growth, which aligns with management's loan growth target. Our view is cautious given recent earnings misses and management volatility.
Breaks if: EPS guidance falls below $6.97 for fiscal Q1 2027
Breaks if: Breach of fixed charge coverage ratio covenant
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on targeted growth and disciplined capital allocation. The current thesis state is intact, supported by recent strong financial performance despite some mixed management priorities.
The market appears to have priced in a durable premium, indicating that expectations are somewhat high. The current valuation is considered expensive compared to peers, reflecting a gap in expectations.
Fundamentals are likely to remain strong, given the robust earnings quality and improving credit metrics. However, management's volatility and the potential for near-term risks could impact performance.
The thesis hinges on the performance of sector bellwethers like Visa, Mastercard, and American Express. If these companies continue to perform well, it could support WRLD's growth, while any negative guidance from them could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The board approved a $50 million share repurchase program. This supports disciplined capital allocation and reinforces confidence in the company's financial health. There are no new threats identified that would weaken this outlook.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Ensure compliance with fixed charge coverage ratio covenants to manage financial stability.
Breaks if: YoY loan growth falls below 4.4% by 2026-Q1
Breaks if: Delinquency rate rises above 17.0% by 2026-Q1
In the next 1 to 3 years, WRLD's performance will depend on management's execution and sector dynamics. Not investment advice.