EZCORP (EZPW) AI Stock Analysis

• Market Cap: $851.55M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.12
• Revenue Growth: 8.95%
• EPS Growth: 71.41%
• Country: US
• Employees: 8,000
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): 1.12
• Shares Outstanding: 51,968,414
• 10 Day Avg. Volume: 2,055,712
• 30 Day Avg. Volume: 1,069,186
• PEG Ratio: 0.19
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.66
• Price to Cash Flow (P/CF): 7.50
• P/FCF Ratio: 7.50
• 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: $19.33
• Price Target Upside: 26.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

EZCORP's strong financial performance and robust technical indicators are key strengths, driving an overall favorable score. The company benefits from strategic growth initiatives and has shown resilience in expanding markets. However, caution is needed due to potential risks like high leverage and overbought technical conditions.

Positive Factors

Business Growth

EZPW continues to open new stores in Latin America, particularly in Mexico, where new locations become profitable quickly, enhancing growth potential.

Financial Performance

Adjusted EPS and EBITDA came in 13% and 14% above expectations, respectively, driven by mix (loans are much more profitable than merchandise sales) and disciplined expense control.

Financial Standing

The interest rate on the new senior notes is lower than expected, which benefits the company's financial standing.

Negative Factors

Economic Risks

Risks to the accomplishment of our price target could come from economic swings that adversely impact consumers' need for pawn lending.

Geographic Expansion

The termination of the acquisition agreement with Auto Dinero was unfortunate, affecting EZPW's geographic expansion plans in Mexico.

EZCORP Business Overview & Revenue Model

Company Description

EZCORP, Inc. (NASDAQ: EZPW) is a leading provider of pawn loans in the United States and Latin America. The company operates through multiple segments, including U.S. Pawn, Latin America Pawn, and other ancillary businesses. EZCORP offers a range of services including pawn loans, which are non-recourse loans collateralized by personal property, and the sale of merchandise, primarily collateral forfeited from pawn lending operations. Their core products include consumer electronics, jewelry, tools, and musical instruments.

How the Company Makes Money

EZCORP primarily generates revenue through its pawn loan services, which involve providing short-term, secured loans to customers in exchange for personal property as collateral. Customers can either repay the loan and reclaim their property or forfeit the collateral, which EZCORP then sells through its retail storefronts. The company earns interest and fees on the pawn loans, contributing to a significant portion of its revenue. Additionally, the sale of forfeited merchandise through retail channels provides another key revenue stream. EZCORP's operations across the U.S. and Latin America help diversify its income sources while strategic store locations and customer relationships enhance its profitability.

EZCORP Financial Statement Overview

Summary

EZCORP exhibits strong financial health, with significant revenue growth, improving margins, and robust cash flow generation. The company's balance sheet is well-managed with a healthy equity position. However, potential risks include high leverage and cash flow volatility, which should be monitored. Overall, EZCORP is positioned well in the credit finance industry with a strong financial foundation.

Income Statement

EZCORP's income statement reveals strong revenue growth with a 33.3% increase from 2022 to 2023 and continued growth into the TTM. Gross profit and net profit margins improved, with a TTM gross profit margin of 58.8% and a net profit margin of 7.2%, indicating solid profitability. The EBIT and EBITDA margins also show strong operational efficiency. However, the reliance on a single revenue stream in a competitive industry poses a potential risk.

Balance Sheet

The balance sheet displays a favorable debt-to-equity ratio of 0.42 in the TTM, showing responsible leverage management. The equity ratio is healthy at 54.9%, suggesting a strong capital structure. Return on equity improved to 10.4%, reflecting better profitability. Nonetheless, the high total debt level relative to total assets could impact financial flexibility in adverse market conditions.

Cash Flow

EZCORP's cash flow statement indicates robust free cash flow growth of 47.2% from the previous year, underlining strong cash generation capabilities. The operating cash flow to net income ratio is 1.40, reflecting efficient cash conversion. However, fluctuations in investing cash flow and financing cash flow suggest potential volatility in cash management strategies.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.18B	1.16B	1.05B	886.23M	729.55M	822.81M
	Gross Profit
695.10M	682.27M	609.84M	528.15M	449.49M	449.24M
	EBIT
117.39M	112.53M	92.15M	74.92M	31.17M	7.84M
	EBITDA
160.66M	162.26M	100.22M	162.03M	117.39M	28.85M
	Net Income Common Stockholders
85.64M	83.09M	38.46M	50.16M	8.61M	-68.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.19M	170.51M	220.59M	206.03M	253.67M	304.54M
	Total Assets
546.28M	1.49B	1.47B	1.35B	1.27B	1.20B
	Total Debt
30.00M	566.94M	610.48M	545.99M	477.78M	454.01M
	Net Debt
-21.19M	396.43M	389.89M	339.96M	224.11M	149.47M
	Total Liabilities
75.81M	688.67M	721.94M	655.65M	594.67M	547.90M
	Stockholders Equity
470.46M	804.57M	745.77M	692.23M	672.24M	649.13M
Cash Flow		Free Cash Flow
91.32M	77.84M	61.39M	34.64M	22.84M	20.55M
	Operating Cash Flow
119.90M	113.60M	101.83M	66.53M	46.44M	49.08M
	Investing Cash Flow
-109.03M	-111.85M	-110.89M	-113.28M	-84.61M	109.90M
	Financing Cash Flow
-50.89M	-50.18M	23.69M	-2.83M	-16.25M	-6.25M

EZCORP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EZPW, the sentiment is Positive. The current price of 15.25 is above the 20-day moving average (MA) of 14.59, above the 50-day MA of 13.79, and above the 200-day MA of 12.02, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 72.34 is Negative, neither overbought nor oversold. The STOCH value of 62.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EZPW.

EZCORP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCFS	77 Outperform	$5.51B	21.47	12.78%	1.24%	7.51%	19.24%
ENVA	77 Outperform	$2.25B	11.58	17.19%	―	25.51%	36.96%
WRLD	77 Outperform	$669.03M	8.04	19.28%	―	-2.78%	24.39%
EZPW	76 Outperform	$851.55M	13.66	10.71%	―	8.95%	71.41%
RM	73 Outperform	$277.15M	6.81	12.14%	4.26%	6.73%	151.08%
OPFI	70 Outperform	$714.57M	42.48	33.59%	―	2.71%	―
Sector *	64 Neutral	$12.70B	9.08	9.19%	4.89%	16.29%	-8.64%

EZCORP Corporate Events

EZCORP Ends Acquisition Deal with Presta Dinero

On March 19, 2025, EZCORP, Inc. announced the termination of its agreement to acquire 53 pawn stores in Mexico from Presta Dinero, S.A. de C.V., an agreement initially made on September 10, 2024. Despite this setback, the company remains optimistic about its expansion opportunities in Mexico, where it currently operates over 560 stores and continues to grow through opening new stores and pursuing strategic acquisitions.

EZCORP 2025 Annual Meeting Highlights Strategic Plans

EZCORP held its 2025 Annual Meeting of Stockholders on March 13, 2025, where the sole holder of the Company’s Class B Voting Common Stock re-elected the board members for a one-year term. The meeting did not involve any voting by the Class A Non-Voting Common Stockholders, but management discussed strategic plans and initiatives and provided a presentation available on the company’s website.

EZCORP Achieves Record Growth in Q1 Fiscal 2025

On February 5, 2025, EZCORP reported record first-quarter fiscal 2025 results with significant financial growth, including a 13% increase in pawn loans outstanding to $274.8 million and a 9% rise in net income to $31.0 million. The company demonstrated strong geographical performance, with U.S. pawn loans up 15% and Latin America pawn loans rising 19% on a constant currency basis, reflecting high customer demand and improved operational performance. The results underscore EZCORP’s strategic initiatives and robust market positioning, as the company aims for continued growth through exceptional customer service and strategic mergers and acquisitions.