World Story

WRLD -- USA Stock

USD 139.03 4.56 3.39%

Macroaxis Story

It looks like Visa will be up for a correction faster as its share price went up 1.52% today to World Acceptance's 6.12%As many rational traders are trying to avoid financial services space, it makes sense to digest World Acceptance a little further and understand how it stands against Visa and other similar entities. We are going to discuss some of the competitive aspects of both World and Visa.

Published over a month ago

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Will World Acceptance (NASDAQ:WRLD) shadow Visa price increase?

By analyzing existing fundamental indicators between World Acceptance and Visa, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Visa with a short position in World Acceptance. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. World Acceptance has an asset utilization ratio of 69.12 percent. This indicates that the company is making $0.69 for each dollar of assets. An increasing asset utilization means that World Acceptance is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as World or American is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is World Acceptance's Liquidity

World Acceptance financial leverage refers to using borrowed capital as a funding source to finance World Acceptance Cp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. World Acceptance financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between World Acceptance's total debt and its cash.

Correlation Between World and American Express

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding World Acceptance together with similar or unrelated positions with a negative correlation. For example, you can also add American Express to your portfolio. If American Express is not perfectly correlated to World Acceptance it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When World Acceptance for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between WRLD and AXP for more information.

Note

Are you currently holding both World Acceptance and American Express in your portfolio?

Please note if you are using this as a pair-trade strategy between World Acceptance and American Express, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Is World Acceptance valued correctly by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check World Acceptance revenue. Based on the latest financial disclosure, World Acceptance reported 557.22 M of revenue. This is 95.03% lower than that of the Financial Services sector and 90.14% lower than that of the Credit Services industry. The revenue for all United States stocks is 94.09% higher than that of the firm. As for Visa we see revenue of 21.85 B, which is 286.49% higher than that of the Credit Services

Sector

5.7 B

21.9 B

WRLD	557.22 Million	1.99
Sector	5.65 Billion	20.15
V	21.85 Billion	77.87

Time to exit of World Acceptance?

World Acceptance latest downside deviation ascents over 4.58. World Acceptance exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate World Acceptance individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about World Acceptance future systematic risk.

Our Bottom Line On World Acceptance

Although some other firms within the credit services industry are still a little expensive, even after the recent corrections, World Acceptance may offer a potential longer-term growth to shareholders. On the whole, as of the 22nd of January 2021, we believe that at this point, World Acceptance is overvalued with close to average chance of bankruptcy within the next 2 years. Our up-to-date Buy-Hold-Sell recommendation on the firm is Strong Sell.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of World Acceptance Cp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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