Consumer Portfolio Services (CPSS) AI Stock Analysis

• Market Cap: $200.49M
• Dividend Yield: N/A
• Average Volume (3M): 21.78K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.62
• Revenue Growth: 9.56%
• EPS Growth: -58.56%
• Country: US
• Employees: 933
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Credit Services
• EPS (TTM): 0.79
• Shares Outstanding: 21,443,197
• 10 Day Avg. Volume: 28,019
• 30 Day Avg. Volume: 21,776
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.51
• Price to Cash Flow (P/CF): 0.70
• P/FCF Ratio: 0.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Consumer Portfolio Services demonstrates solid financial stability and strong revenue growth. However, challenges such as fluctuating profitability, reliance on debt, negative technical indicators, and mixed earnings call sentiment weigh on the stock's overall performance. The reasonable valuation provides some support, but operational inefficiencies and increased financial risks necessitate caution.

Consumer Portfolio Services Business Overview & Revenue Model

Company Description

Consumer Portfolio Services, Inc. (CPS) is a specialty finance company operating within the consumer finance sector. The company specializes in purchasing and servicing retail automobile contracts originated by franchised automobile dealers and select independent dealers in the United States. CPS primarily caters to individuals with limited credit histories, low incomes, or past credit challenges, providing an essential service for consumers seeking to finance vehicle purchases.

How the Company Makes Money

Consumer Portfolio Services generates revenue primarily through the acquisition and servicing of automobile loans. The company purchases loans from dealers at a discount, which allows them to earn interest income by charging interest rates on these loans that are higher than the rate at which they purchase them. Additionally, CPS earns servicing fees by managing the collection of payments and handling customer service for the loans they own or service. The company also benefits from securitization transactions, where pools of loans are sold to investors, thus providing liquidity and an additional revenue stream. Key factors contributing to CPS's earnings include the interest rate environment, credit performance of the loan portfolio, and the ability to maintain strong relationships with automobile dealers and financial markets.

Consumer Portfolio Services Financial Statement Overview

Summary

Consumer Portfolio Services exhibits commendable financial stability with strong operating cash flows and improved revenue figures. However, there are risks associated with fluctuating profitability margins and reliance on debt financing to support asset growth.

Income Statement

The company has shown a mixed performance in terms of revenue growth, with a significant increase from 2023 to 2024, yet experiencing fluctuations in previous years. The gross profit margin remains strong, indicating effective cost management. However, the net profit margin has been volatile, showing a recent decrease due to rising expenses or other factors impacting net income. EBIT and EBITDA margins are moderate, reflecting steady operational efficiency but with room for improvement.

Balance Sheet

The balance sheet reflects a strong equity base with a low debt-to-equity ratio, especially in 2024, which indicates reduced financial leverage and lower risk. However, the equity ratio has been modest, suggesting that a significant portion of assets is financed by debt. Return on equity has shown variability, highlighting challenges in achieving consistent profitability relative to equity.

Cash Flow

The cash flow statement demonstrates robust operating cash flow generation, supporting strong free cash flow figures. There is a positive trajectory in free cash flow growth, indicating efficient cash management and capacity to fund operations without reliance on external financing. The operating cash flow to net income ratio is solid, suggesting effective conversion of earnings into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
393.51M	214.60M	242.19M	192.57M	169.82M
	Gross Profit
387.90M	208.23M	234.65M	184.86M	162.40M
	EBIT
27.43M	61.10M	1.62B	65.75M	20.12M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
19.20M	45.34M	85.98M	47.52M	21.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.71M	6.17M	13.49M	29.93M	13.47M
	Total Assets
3.49B	2.90B	2.75B	2.16B	2.15B
	Total Debt
3.13B	2.57B	2.47B	1.95B	1.97B
	Net Debt
3.12B	2.56B	2.46B	1.92B	1.96B
	Total Liabilities
3.20B	2.63B	2.52B	1.99B	2.01B
	Stockholders Equity
292.77M	274.67M	228.39M	170.21M	133.36M
Cash Flow		Free Cash Flow
233.75M	237.42M	213.78M	196.22M	238.74M
	Operating Cash Flow
233.75M	237.98M	215.93M	198.19M	238.77M
	Investing Cash Flow
-769.71M	-359.53M	-713.90M	-115.36M	93.03M
	Financing Cash Flow
547.92M	84.19M	484.21M	-50.44M	-328.48M

Consumer Portfolio Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPSS, the sentiment is Negative. The current price of 8.63 is below the 20-day moving average (MA) of 8.86, below the 50-day MA of 9.84, and below the 200-day MA of 9.93, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 36.27 is Neutral, neither overbought nor oversold. The STOCH value of 28.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPSS.

Consumer Portfolio Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRCC	65 Neutral	$155.56M	16.03	4.91%	13.93%	127.09%	2519.30%
OFS	64 Neutral	$112.95M	3.97	17.02%	16.13%	-32.33%	―
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
CPSS	58 Neutral	$200.49M	10.93	6.77%	―	9.56%	-58.56%
ONIT	58 Neutral	$237.77M	7.38	7.58%	―	-7.86%	―
OXSQ	53 Neutral	$173.08M	26.78	3.77%	16.93%	-254.03%	-74.17%
MBI	29 Underperform	$219.11M	―	26.69%	―	583.33%	6.59%

Consumer Portfolio Services Corporate Events

Consumer Portfolio Services Leads in Sub-Prime Auto Financing

Consumer Portfolio Services (CPS) is at the forefront of sub-prime automobile financing, offering indirect loans through licensed dealers to customers who might not qualify elsewhere. With a $3.5 billion managed portfolio and a presence in numerous states, CPS leverages advanced machine learning and AI models to assess credit risks, ensuring high-quality loans. The company boasts a seasoned leadership team and a solid track record of profitability, making it a notable player in the competitive, capital-intensive auto finance market.