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ATLC

Atlanticus Holdings Corp – Credit Card Issuing
Founded in 1996, Atlanticus' business utilizes proprietary analytics and a flexible technology platform to enable financial institutions to provide various credit and related financial services and products to the financially underserved consumer credit market. The company applies the experience gained and infrastructure built from servicing over 17 million customers and $25 billion in consumer loans over their 24-year operating history to support lenders that originate a range of consumer loan products. These products include retail credit and general-purpose credit cards marketed through their omnichannel platform, including retail point-of-sale, direct mail solicitation, Internet-based marketing, and partnerships with third parties. Additionally, through its CAR subsidiary, Atlanticus serves the individual needs of automotive dealers and automotive non-prime financial organizations with multiple financing and service programs.
Analysis Results
Intrinsic Value $9,016.24
Latest Price $27.32
Relative Value 100% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 65.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 65.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.623 0.607
2023 1.03 0.98
2024 1.71 1.58
2025 2.83 2.55
2026 4.7 4.12
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 141 billion. This corresponds to a present value of 120 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.84 billion. Adding in the terminal value gives a total present value of 130 billion.

There are presently 14.4 million outstanding shares, so the intrinsic value per share is 9016.24.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,932,512,000
Current Cash 0
Current Liabilities 1,511,872,000
Current Debt 0
Non-Cash Working Capital (NCWC) 420,640,000
Change in NCWC 203,840,000
EBIT 219,573,000
Tax Provision 41,784,000
Depreciation and Amortization 2,494,000
Capital Expenditure -7,089,000
Unlevered Free Cash Flow 377,034,000
Current Assets 1,194,378,000
Current Cash 0
Current Liabilities 977,578,000
Current Debt 0
Non-Cash Working Capital (NCWC) 216,800,000
Change in NCWC 123,942,000
EBIT 114,391,000
Tax Provision 20,474,000
Depreciation and Amortization 7,952,000
Capital Expenditure -749,000
Unlevered Free Cash Flow 225,062,000
Current Assets 917,480,000
Current Cash 0
Current Liabilities 824,622,000
Current Debt 0
Non-Cash Working Capital (NCWC) 92,858,000
Change in NCWC 121,088,000
EBIT 31,763,000
Tax Provision 5,553,000
Depreciation and Amortization 7,693,000
Capital Expenditure -250,000
Unlevered Free Cash Flow 154,741,000
Current Assets 576,507,000
Current Cash 0
Current Liabilities 604,737,000
Current Debt 0
Non-Cash Working Capital (NCWC) -28,230,000
Change in NCWC 15,370,000
EBIT 3,482,000
Tax Provision -4,130,000
Depreciation and Amortization 987,000
Capital Expenditure -1,383,000
Unlevered Free Cash Flow 18,456,000
Current Assets 418,140,000
Current Cash 0
Current Liabilities 461,740,000
Current Debt 0
Non-Cash Working Capital (NCWC) -43,600,000
Change in NCWC -38,796,000
EBIT -47,250,000
Tax Provision -6,378,000
Depreciation and Amortization 1,021,000
Capital Expenditure -395,000
Unlevered Free Cash Flow -85,420,000
Current Assets 353,408,000
Current Cash 0
Current Liabilities 358,212,000
Current Debt 0
Non-Cash Working Capital (NCWC) -4,804,000
Change in NCWC 4,720,000
EBIT -12,356,000
Tax Provision -6,015,000
Depreciation and Amortization 7,477,000
Capital Expenditure -349,000
Unlevered Free Cash Flow -508,000
Current Assets 260,254,000
Current Cash 0
Current Liabilities 269,778,000
Current Debt 0
Non-Cash Working Capital (NCWC) -9,524,000
Change in NCWC 20,080,000
EBIT 3,535,000
Tax Provision 1,829,000
Depreciation and Amortization 40,565,000
Capital Expenditure -884,000
Unlevered Free Cash Flow 61,467,000
Current Assets 231,309,000
Current Cash 0
Current Liabilities 260,913,000
Current Debt 0
Non-Cash Working Capital (NCWC) -29,604,000
Change in NCWC 42,158,000
EBIT -27,305,000
Tax Provision -34,632,000
Depreciation and Amortization 68,075,000
Capital Expenditure -4,068,000
Unlevered Free Cash Flow 78,860,000
Current Assets 279,315,000
Current Cash 0
Current Liabilities 351,077,000
Current Debt 0
Non-Cash Working Capital (NCWC) -71,762,000
Change in NCWC -46,001,000
EBIT -22,779,000
Tax Provision -5,114,000
Depreciation and Amortization 17,699,000
Capital Expenditure -3,487,000
Unlevered Free Cash Flow -54,568,000
Current Assets 335,478,000
Current Cash 0
Current Liabilities 361,239,000
Current Debt 0
Non-Cash Working Capital (NCWC) -25,761,000
Change in NCWC -41,096,000
EBIT -43,831,000
Tax Provision -15,609,000
Depreciation and Amortization 2,574,000
Capital Expenditure -2,186,000
Unlevered Free Cash Flow -84,539,000

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