Stock fact sheet · data as of
Regional Management Corp. (RM): fair value, margin of safety and Wheel Score
Financial Services · Financial - Credit Services · United States · Value
Is RM undervalued?
RM has a margin of safety of 84%: the stock closed at 33.38 on 16 Oct 2026 against a GLS average fair value of 202.77. 7 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between DDM (17.66) and 10 Cap (744.28). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files RM under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for RM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 313.45 | +839% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 70.24 | +110% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 218.37 | +554% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 89.53 | +168% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 32.43 | -3% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 744.28 | +2130% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 281.14 | +742% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 17.66 | -47% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 57.88 | +73% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 18.18 | -46% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Regional Management Corp. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability RM scores 7.4/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are thin or negative - ROIC 2.1%, ROE 11.9%, ROA 2.0% - with debt at 4.65 times equity and a free-cash-flow yield of 103.1%. Debt of 4.65 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 3.59% at a payout ratio of 25%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 2.1% |
|---|---|---|---|
| GLS Moat | 7.4 / 10 | ROE | 11.9% |
| Debt / equity | 4.65 | ROA | 2.0% |
| Free-cash-flow yield | 103.1% | Payout ratio | 25% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 73: Good
With a Wheel Score of 73 - the Good band - Regional Management Corp. clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 16/20, Moat 11/15, Premium 15/20, Stability 6/20; Stability (6/20) scores lowest.
Implied volatility is 79% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (15 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 92 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 110k shares a day on a market cap of $308M, with a beta of 1.01; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 84% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 11 / 15 | moat 7.4/10 | |
| Premium | 15 / 20 | implied volatility 79% | |
| Stability | 6 / 20 | 110k shares/day, $308M cap, beta 1.01 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Regional Management Corp. reports earnings on 28 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Credit Services
The 12 companies below are the closest to Regional Management Corp. by market cap within the Financial - Credit Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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| RWAY Runway Growth Finance Corp. | 6.31 | 19.22 | +67% | 45Weak | $264M |
| HTT High Templar Tech Limited | 2.14 | 36.14 | +94% | 50Fair | $359M |
| MFIN Medallion Financial Corp. | 11.19 | 65.18 | +83% | 76Good | $257M |
| OPRT Oportun Financial Corporation | 9.21 | 33.95 | +73% | 74Good | $424M |
| CPSS Consumer Portfolio Services, Inc. | 9.17 | 69.18 | +87% | 73Good | $201M |
| TROO TROOPS, Inc. | 1.63 | - | - | 25Weak | $199M |
| OPFI OppFi Inc. | 5.77 | 79.51 | +93% | 81Prime | $492M |
| SWKHL SWK Holdings Corporation 9.00% Senior Notes due 2027 | 25.11 | 57.08 | +56% | 38No options | $192M |
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Start free See the Sunday ScanQuestions about RM
Is RM undervalued right now?
By the GLS models, yes: at 33.38 the stock is 84% below the average fair value of 202.77 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of RM and what does it mean?
RM scores 73 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RM?
202.77 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Regional Management Corp. report earnings next?
The next earnings report is due on 28 Oct 2026 (after the close), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RM have listed options, and how liquid are they?
Yes. The nightly snapshot found 64 listed contracts with 92 open interest across all expiries and implied volatility of 79% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.