$World Acceptance (WRLD.US)$It is for small consumer loans. ...

Revenue is mainly composed of interest income, and there is also a small portion of non-interest income, mainly premium and commission income. Credit loss reserves fluctuated greatly, which is a factor that determines net profit. Net profit for the first 3 quarters of 2023 fell into a small loss as a result. The average net profit over the past 5 years was $52 million.

The balance ratio increased from 35.7% to 69.4% in the past 5 years, and reached 70.5% in 2023Q3.

Assets are mainly composed of net loans, and liabilities are mainly composed of long-term loans. Long-term loans account for twice as much as net assets.

Currently, the price-earnings ratio is 9.9, but the price-earnings ratio has soared to 38.6, and the 2023 annual report is unlikely to be easy to read. If you calculate an average net profit of 52 million over 5 years, the price-earnings ratio is 10. Currently, the net price-earnings ratio is 1.45. The valuation is reasonable for traditional loan finance, and is not very attractive. You can wait until the annual report comes out to see if the market is overreacting.