📊 WRLD Key Takeaways
Is World Acceptance Corp. (WRLD) a Good Investment?
World Acceptance Corp exhibits critical financial stress despite exceptional 483% revenue growth and strong free cash flow. The interest coverage ratio of 0.9x indicates the company cannot cover interest expense from operating income, signaling unsustainable debt levels. The simultaneous 61% decline in net income amid surging revenues reveals severe margin compression and deteriorating earnings quality.
World Acceptance Corp. Key Strengths (WRLD)
- Exceptional revenue growth of 483% YoY demonstrates strong market demand or successful business expansion
- Outstanding free cash flow of $255.5M with 43.7% FCF margin indicates robust underlying cash generation capability
- Strong operating cash flow of $259.4M provides liquidity despite profitability headwinds
WRLD Stock Risks: World Acceptance Corp. Investment Risks
- Interest coverage of 0.9x is critical: operating income cannot cover interest expenses, indicating financial distress
- Net income collapsed 61% despite 483% revenue growth, revealing severe margin compression and deteriorating business profitability
- Very low cash position of $6.1M versus $587.2M long-term debt creates acute liquidity vulnerability and refinancing risk
Key Metrics to Watch
- Interest coverage ratio - must improve above 1.5x to demonstrate sustainable debt servicing capability
- Net profit margin stability - must stop declining and stabilize to validate earnings quality recovery
- Cash position - must rebuild significantly to support debt obligations and operational needs
World Acceptance Corp. (WRLD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 43.7% 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.
WRLD Profit Margin, ROE & Profitability Analysis
WRLD vs Finance Sector: How World Acceptance Corp. Compares
How World Acceptance Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is World Acceptance Corp. Stock Overvalued? WRLD Valuation Analysis 2026
Based on fundamental analysis, World Acceptance Corp. has mixed fundamental signals relative to the Finance 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.
World Acceptance Corp. Balance Sheet: WRLD Debt, Cash & Liquidity
WRLD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: World Acceptance Corp.'s revenue has remained relatively flat over the 5-year period, with a 1% decline. The most recent EPS of $13.14 reflects profitable operations.
WRLD Revenue Growth, EPS Growth & YoY Performance
WRLD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $138.6M | -$911.3K | $-0.19 |
| Q2 2026 | $131.4M | -$602.1K | $-0.12 |
| Q1 2026 | $129.5M | $1.3M | $0.25 |
| Q3 2025 | $137.7M | $13.4M | $2.45 |
| Q3 2024 | $137.7M | -$3.4M | $-0.59 |
| Q2 2024 | $131.4M | -$637.6K | $-0.11 |
| Q1 2024 | $129.5M | -$8.6M | $-1.49 |
| Q3 2023 | $146.5M | -$4.4M | $-0.77 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
World Acceptance Corp. Dividends, Buybacks & Capital Allocation
WRLD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for World Acceptance Corp. (CIK: 0000108385)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WRLD
What is the AI rating for WRLD?
World Acceptance Corp. (WRLD) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WRLD's key strengths?
Claude: Exceptional revenue growth of 483% YoY demonstrates strong market demand or successful business expansion. Outstanding free cash flow of $255.5M with 43.7% FCF margin indicates robust underlying cash generation capability.
What are the risks of investing in WRLD?
Claude: Interest coverage of 0.9x is critical: operating income cannot cover interest expenses, indicating financial distress. Net income collapsed 61% despite 483% revenue growth, revealing severe margin compression and deteriorating business profitability.
What is WRLD's revenue and growth?
World Acceptance Corp. reported revenue of $585.2M.
Does WRLD pay dividends?
World Acceptance Corp. does not currently pay dividends.
Where can I find WRLD SEC filings?
Official SEC filings for World Acceptance Corp. (CIK: 0000108385) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WRLD's EPS?
World Acceptance Corp. has a diluted EPS of $6.88.
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 grade reflects both perspectives for balanced insights.
What is WRLD's fundamental grade?
Based on our AI fundamental analysis in June 2026, World Acceptance Corp. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WRLD stock overvalued or undervalued?
Valuation metrics for WRLD: ROE of 9.9% (sector avg: 12%), net margin of 5.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is WRLD's AI grade for 2026?
Our dual AI analysis gives World Acceptance Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WRLD's free cash flow?
World Acceptance Corp.'s operating cash flow is $259.4M, with capital expenditures of $3.9M. FCF margin is 43.7%.
How does WRLD compare to other Finance stocks?
Vs Finance sector averages: Net margin 5.9% (avg: 25%), ROE 9.9% (avg: 12%), current ratio N/A (avg: 1.2).
Is World Acceptance Corp. carrying too much debt?
WRLD has a debt-to-equity ratio of 1.67x, which is above the Finance sector average of 2x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.