World Acceptance screens as statistically cheap (PEG 0.14) but the cheapness looks earned — a 43% FCF-to-net-income ratio, a failed Rule of 40, four consecutive earnings misses, a price already well above where the analyst target implies, and net insider selling all point to elevated fundamental risk.
Thesis pillars
- Attractive Valuation Low Peg→Stable
- Earnings Quality Red Flag→Stable
- Four Quarter Earnings Miss Streak→Stable
- +2 more pillars — see the Why tab for full reasoning
World Acceptance Corporation (WRLD) Stock Analysis
Inst Constrain edge
Financial Services · Credit Services
Sell if holding. Analyst target reached at $194.46 — A.R:R is negative (-2.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: small consumer installment loans.
World Acceptance Corporation engages in consumer finance business in the United States. The company offers short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It also provides... Read more
Sell if holding. Analyst target reached at $194.46 — A.R:R is negative (-2.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: small consumer installment loans. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.4/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 15d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-07-08Recent Developments — World Acceptance Corporation
Latest news
- NEWS Top 3 Financial Stocks That May Fall Off A Cliff In Q2 — benzinga Jun 29, 2026 neutral
Generated 2026-07-08T23:03:59Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicconcentration of revenue in certain states10-K Item 1A: 'A significant concentration of revenue in certain states increases exposure to regional economic, regulatory, or legislative changes that could adversely affect the Company.'
- HIGHProductsmall consumer installment loans10-K Item 1A: 'Our primary business activity is offering small consumer installment loans together with, in some states in which we operate, related ancillary products.'
Material Events(8-K, last 90d)
- 2026-06-04Item 5.02MEDIUMOn June 3, 2026, Interim President and CEO Janet L. Matricciani's role was terminated, not due to any disagreement; Mr. J. Tobin Turner, age 51, was designated as her successor.SEC filing →
- 2026-04-15Item 5.02HIGHOn April 10, 2026, R. Chad Prashad resigned as President, CEO, and board member to pursue other opportunities, not due to disagreement; treated as termination without cause with $1,260,000 severance. No successor named in the disclosed text.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Negative sentiment — recent news tone and/or analyst downgrades drag the composite below neutral.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $194.46 — A.R:R is negative (-2.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: small consumer installment loans. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $180.85. Score 5.4/10, moderate confidence.
Take-profit target: $223.13 (+14.7% upside). Prior stop was $180.85. Stop-loss: $180.85.
Concentration risk — Product: small consumer installment loans; Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.9): -1.0.
World Acceptance Corporation trades at a P/E of 29.3 (forward 14.3). TrendMatrix value score: 7.7/10. Verdict: Sell.
6 analysts cover WRLD with a consensus score of 2.2/5. Average price target: $141.
What does World Acceptance Corporation do?World Acceptance Corporation engages in consumer finance business in the United States. The company offers short-term...
World Acceptance Corporation engages in consumer finance business in the United States. The company offers short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It also provides income tax return preparation and electronic filing services; and automobile club memberships to borrowers. The company serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.