NICK  Nicholas Financial Inc.

Exchange

NASDAQ

Sector

Finance

Industry

Finance Companies

Market Cap.

65.20M

Vuru Grade

72.06/100

Current Price

$8.38
-0.41 (-4.66%)

Growth Price

$35.63
Undervalued by 325.13%

Stability Price

$16.71
Undervalued by 99.37%

Company Metrics

  • P/E 7.17
  • P/S 1.36
  • P/B 0.62
  • EPS 1.17
  • Cash ROIC 8.17%
  • Cash Ratio -
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 18,327.00
  • Shares 7.78M
  • Market Cap. 65.20M

Company Description

Nicholas Financial, Inc., through its subsidiaries, operates as a specialized consumer finance company. The company engages in acquiring and servicing contracts for purchases of new and used automobiles and light trucks. It also makes direct loans and sells consumer-finance related products. In addition, the company engages in developing, marketing, supporting, and updating industry-specific compu... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

BRIEF-Nicholas Financial Inc quarterly revenue $22.9 million
Reuters - May 17, 2017
SINGAPORE, May 18 Exxon Mobil Corp has outbid other Asian buyers of deodorised field condensate (DFC) in a tender floated by Qatar Petroleum, to secure supplies for a newly purchased refining-petrochemical complex in Singapore, sources with ...
Breaking Down: Nicholas Financial Inc (NASDAQ:NICK) Stock Drop Below Support ...
CML News - May 25, 2017
Nicholas Financial Inc has a one bull (extreme weakness) technical rating because it's trading below the 10 day, 50 day and 200 day simple moving averages while the 10-day moving average is below the 50-day moving average and the 50-day moving ...
Why Nicholas Financial Is So Cheap
Seeking Alpha - Oct 22, 2015
Nicholas Financial (NASDAQ:NICK) is remarkably cheap, as it is trading at a trailing P/E of 9 and a forward P/E of about 7. The company reduced its share count by 38% via a modified Dutch auction earlier this year, but the market did not show any ...
Nicholas Financial, Inc. (NICK) Major Shareholder Magnolia Capital Fund, Lp ...
Sports Perspectives - 21 hours ago
Nicholas Financial logo Nicholas Financial, Inc. (NASDAQ:NICK) major shareholder Magnolia Capital Fund, Lp purchased 4,800 shares of the business's stock in a transaction dated Tuesday, May 23rd.
Are the Technicals Adding up for Nicholas Financial, Inc. (NASDAQ:NICK)? - Evergreen Caller
Magnolia Capital Fund, Lp Acquires 4800 Shares of Nicholas Financial, Inc ...
BBNS - 2 hours ago
Nicholas Financial logo Nicholas Financial, Inc. (NASDAQ:NICK) major shareholder Magnolia Capital Fund, Lp purchased 4,800 shares of the business's stock in a transaction on Tuesday, May 23rd.
Unusual Activity Sighted in 8×8, Inc. (NASDAQ:EGHT), and Nicholas Financial ...
Concord Register - 4 hours ago
Shares of 8×8, Inc. (NASDAQ:EGHT) are experiencing unusual volume during today's trading. While the stock price moved along with the volume change, shares are touching $13.48 at the time of writing.
Nicholas Financial Inc (NICK) Moving 0.68% in Session
Pearson Press - 6 hours ago
Shares of Nicholas Financial Inc (NICK) are moving on volatility today 0.68% or $0.06 from the open. The NASDAQ listed company saw a recent bid of $8.85 and 2738 shares have traded hands in the session.
Top Gainer: Investors Watching Technical Levels of Nicholas Financial, Inc.'s ...
WsNews 4investors - May 24, 2017
Nicholas Financial, Inc. (NICK) stock price escalated 6.10% to finalize at $9.05 throughout previous buying and selling session.
Stock Focus: Checking Levels on Nicholas Financial Inc (NICK)
Sherwood Daily - May 25, 2017
Investors are keeping a close eye on levels of Nicholas Financial Inc (NICK). The Average Directional Index or ADX is a technical analysis indicator used to describe if a market is trending or not trending.
Focus on Technical Analysis: Nicholas Financial, Inc.'s (NICK) stock price ...
WsNews 4investors - May 23, 2017
Nicholas Financial, Inc. (NICK) stock price distance from twenty day simple moving average slumped at -12.08% while its distance from fifty day simple moving average declined -15.49% along with -18.25% below distance from two hundred simple moving ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for NICK to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate NICK's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$8.38 Current Price

$35.63 Growth Price (DCF)

Undervalued by 325.13%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 4.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$16.71 Stability Price (EPV)

Undervalued by 99.37%


Discount Rate: 15.0%

$15.06 Book Price

Undervalued by 79.66%


Poor Cash Return on Invested Capital over the past 5 years

NICK has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

NICK has only created $8.17 of cash for every $100 invested.
Figures in USD. Fiscal year ends in March
20122013201420152016
Free Cash Flow 21.55M 25.35M 20.88M 25.32M 23.16M
divided by
Invested Capital 257.24M 263.84M 283.43M 302.53M 325.31M
Cash ROIC 8.38% 9.61% 7.37% 8.37% 7.12%

Satisfactory Return on Equity over the past 5 years

NICK has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

NICK has generated $14.92 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in March
20122013201420152016
Net Income 22.23M 19.94M 16.70M 16.86M 12.38M
divided by
Stockholders' Equity 135.94M 126.97M 141.94M 89.89M 102.85M
Return on Equity 16.35% 15.71% 11.77% 18.75% 12.04%

Excellent Business Performance over the past 10 years

NICK has been able to maintain profitability in good times and bad. This could mean NICK has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

NICK has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Free Cash Flow 15.58M 16.67M 21.37M 21.12M 20.96M 21.55M 25.35M 20.88M 25.32M 23.16M

Weak Balance Sheet

NICK's financial position is not ideal. The key is to check whether NICK is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 173.02M 189.84M 197.78M 214.14M 243.64M 257.24M 263.84M 283.43M 302.53M 325.31M
Current Liabilities - - - - - - - - - -
Total Liabilities 103.21M 111.26M 112.76M 116.70M 128.43M 121.30M 136.87M 141.49M 212.64M 222.46M
Stockholder' Equity 69.81M 78.58M 85.02M 97.44M 115.21M 135.94M 126.97M 141.94M 89.89M 102.85M
Current Ratio - - - - - - - - - -
TL-to-TA 0.60 0.59 0.57 0.54 0.53 0.47 0.52 0.50 0.70 0.68

Consistent Reinvestment of Profits over the past 10 years

NICK has consistently retained profits. This may put NICK in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, NICK can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Retained Earnings 53.31M 62.98M 67.70M 72.07M 88.88M 107.51M 96.93M 110.79M 127.64M 140.02M
Retained Earnings Growth - 18.14% 7.49% 6.46% 23.32% 20.97% -9.84% 14.29% 15.21% 9.70%

Competitive Advantage over the past 10 years

NICK likely has a competitive advantage which prevents other companies from entering or competing in their industry. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at future prospects to determine its sustainability.

$20.92 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Net Income 11.58M 9.67M 4.72M 10.86M 16.81M 22.23M 19.94M 16.70M 16.86M 12.38M
divided by
Revenue 46.71M 50.08M 53.10M 56.47M 62.77M 68.17M 82.11M 82.63M 86.79M 90.71M
Net Profit Margin 24.79% 19.31% 8.88% 19.24% 26.77% 32.61% 24.29% 20.21% 19.42% 13.65%

Weak Pricing Power over the past 10 years

NICK is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that NICK has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue 46.71M 50.08M 53.10M 56.47M 62.77M 68.17M 82.11M 82.63M 86.79M 90.71M
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

NICK has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that NICK may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

3.25% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Capital Expenditure 515,908.00 189,845.00 295,272.00 208,671.00 393,782.00 320,537.00 271,003.00 464,598.00 442,758.00 913,000.00
divided by
Net Income 11.58M 9.67M 4.72M 10.86M 16.81M 22.23M 19.94M 16.70M 16.86M 12.38M
Capital Expenditure Ratio 4.46% 1.96% 6.26% 1.92% 2.34% 1.44% 1.36% 2.78% 2.63% 7.38%

Inconsistent Dividend History over the past 10 years

NICK has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Dividend Paid - - - - - 3.59M 29.84M 2.85M - -
divided by
Shares Outstanding 11.27M 11.32M 11.44M 11.69M 11.89M 12.03M 12.22M 12.33M 12.19M 7.69M
Dividend Paid Per Share - - - - - 0.30 2.44 0.23 - -
Price at Year End 6.10 2.14 6.72 9.96 12.82 11.88 15.74 14.89 11.77 11.89
Dividend Yield - - - - - 2.51% 15.52% 1.55% - -

History of Stock Buybacks over the past 10 years

NICK has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Shares Outstanding 11.27M 11.32M 11.44M 11.69M 11.89M 12.03M 12.22M 12.33M 12.19M 7.69M
Stock Bought Back - -0.41% -1.06% -2.13% -1.72% -1.16% -1.52% -0.86% 1.09% 58.50%
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