📊 RM Key Takeaways
Is RM a Good Investment? Thesis Analysis
Regional Management generates exceptional free cash flow ($304.3M, 47.1% FCF margin) supporting its $1.6B debt load, but interest coverage of only 1.8x is dangerously thin. Net income growth stalled at 0% despite 9.7% revenue expansion, signaling margin compression that must reverse to justify the 4.4x debt-to-equity leverage.
Why Buy RM? Key Strengths
- Exceptional free cash flow generation of $304.3M (47.1% FCF margin) provides debt service cushion
- Revenue growth of 9.7% YoY demonstrates market demand in consumer lending segment
- Diluted EPS grew 7.5% YoY despite flat net income, indicating shareholder-friendly capital allocation
RM Investment Risks to Consider
- Interest coverage ratio of 1.8x is critically low, leaving minimal buffer for economic stress or rising rates
- Debt-to-equity of 4.4x combined with only $3.8M cash creates significant refinancing and liquidity risk
- Net income growth of 0% despite 9.7% revenue growth indicates deteriorating operating margins and efficiency
Key Metrics to Watch
- Interest coverage ratio - must sustain above 2.0x minimum safe threshold
- Operating margin trend - must expand or stabilize to support debt service
- Cash flow conversion ratio - FCF sustainability critical given leverage constraints
RM Financial Metrics
💡 AI Analyst Insight
The 47.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
RM Profitability Ratios
RM vs Default Sector
How Regional Management Corp. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RM Overvalued or Undervalued?
Based on fundamental analysis, Regional Management Corp. shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RM Balance Sheet & Liquidity
RM 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Regional Management Corp.'s revenue has grown significantly by 51% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.66 reflects profitable operations.
RM Growth Metrics (YoY)
RM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $146.3M | $7.7M | $0.76 |
| Q2 2025 | $143.0M | $8.4M | $0.86 |
| Q1 2025 | $144.3M | $7.0M | $0.70 |
| Q3 2024 | $140.9M | $7.7M | $0.76 |
| Q2 2024 | $133.5M | $6.0M | $0.63 |
| Q1 2024 | $135.4M | $8.7M | $0.90 |
| Q3 2023 | $131.5M | $8.8M | $0.91 |
| Q2 2023 | $122.9M | $6.0M | $0.63 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RM Capital Allocation
RM SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Regional Management Corp. (CIK: 0001519401)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RM
What is the AI rating for RM?
Regional Management Corp. (RM) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RM's key strengths?
Claude: Exceptional free cash flow generation of $304.3M (47.1% FCF margin) provides debt service cushion. Revenue growth of 9.7% YoY demonstrates market demand in consumer lending segment.
What are the risks of investing in RM?
Claude: Interest coverage ratio of 1.8x is critically low, leaving minimal buffer for economic stress or rising rates. Debt-to-equity of 4.4x combined with only $3.8M cash creates significant refinancing and liquidity risk.
What is RM's revenue and growth?
Regional Management Corp. reported revenue of $645.6M.
Does RM pay dividends?
Regional Management Corp. pays dividends, with $12.2M distributed to shareholders in the trailing twelve months.
Where can I find RM SEC filings?
Official SEC filings for Regional Management Corp. (CIK: 0001519401) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RM's EPS?
Regional Management Corp. has a diluted EPS of $4.45.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Regional Management Corp. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RM stock overvalued or undervalued?
Valuation metrics for RM: ROE of 11.9% (sector avg: 15%), net margin of 6.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy RM stock in 2026?
Our dual AI analysis gives Regional Management Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RM's free cash flow?
Regional Management Corp.'s operating cash flow is $309.1M, with capital expenditures of $4.8M. FCF margin is 47.1%.
How does RM compare to other Default stocks?
Vs Default sector averages: Net margin 6.9% (avg: 12%), ROE 11.9% (avg: 15%), current ratio N/A (avg: 1.8).