CONSUMER PORTFOLIO SERVICES (CPSS)
US2105021008 - Common Stock
CPSS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 51 industry peers in the Consumer Finance industry. While CPSS is still in line with the averages on profitability rating, there are concerns on its financial health. CPSS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CPSS was profitable.
CPSS had a positive operating cash flow in the past year.
Each year in the past 5 years CPSS has been profitable.
In the past 5 years CPSS always reported a positive cash flow from operatings.
1.2 Ratios
CPSS has a Return On Assets of 0.61%. This is comparable to the rest of the industry: CPSS outperforms 41.18% of its industry peers.
CPSS has a Return On Equity of 7.45%. This is comparable to the rest of the industry: CPSS outperforms 49.02% of its industry peers.
CPSS has a Return On Invested Capital (0.17%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for CPSS is significantly below the industry average of 7.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 7.45% | ||
| ROIC | 0.17% |
ROA(3y)2.3%
ROA(5y)1.62%
ROE(3y)27.36%
ROE(5y)20.2%
ROIC(3y)2.17%
ROIC(5y)1.81%
1.3 Margins
The Profit Margin of CPSS (5.93%) is worse than 60.78% of its industry peers.
In the last couple of years the Profit Margin of CPSS has grown nicely.
Looking at the Operating Margin, with a value of 2.21%, CPSS is in line with its industry, outperforming 43.14% of the companies in the same industry.
In the last couple of years the Operating Margin of CPSS has grown nicely.
CPSS has a Gross Margin of 50.02%. This is comparable to the rest of the industry: CPSS outperforms 50.98% of its industry peers.
In the last couple of years the Gross Margin of CPSS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.21% | ||
| PM (TTM) | 5.93% | ||
| GM | 50.02% |
OM growth 3Y-11.99%
OM growth 5Y24.66%
PM growth 3Y22.71%
PM growth 5Y28.39%
GM growth 3Y-4.99%
GM growth 5Y-5.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPSS is destroying value.
CPSS has more shares outstanding than it did 1 year ago.
CPSS has less shares outstanding than it did 5 years ago.
CPSS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.24, we must say that CPSS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.24, CPSS is in line with its industry, outperforming 45.10% of the companies in the same industry.
CPSS has a debt to FCF ratio of 14.04. This is a negative value and a sign of low solvency as CPSS would need 14.04 years to pay back of all of its debts.
CPSS has a Debt to FCF ratio (14.04) which is comparable to the rest of the industry.
CPSS has a Debt/Equity ratio of 10.89. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 10.89, CPSS is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.89 | ||
| Debt/FCF | 14.04 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.03
WACC4.97%
2.3 Liquidity
CPSS has a Current Ratio of 0.22. This is a bad value and indicates that CPSS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CPSS (0.22) is worse than 74.51% of its industry peers.
CPSS has a Quick Ratio of 0.22. This is a bad value and indicates that CPSS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.22, CPSS is not doing good in the industry: 74.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
CPSS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.54%.
The Earnings Per Share has been growing by 24.97% on average over the past years. This is a very strong growth
Looking at the last year, CPSS shows a small growth in Revenue. The Revenue has grown by 6.25% in the last year.
The Revenue has been decreasing by -2.70% on average over the past years.
EPS 1Y (TTM)-58.54%
EPS 3Y25.95%
EPS 5Y24.97%
EPS Q2Q%-51.57%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y4.18%
Revenue growth 5Y-2.7%
Sales Q2Q%16.82%
3.2 Future
The Earnings Per Share is expected to grow by 22.84% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.19% on average over the next years. This is quite good.
EPS Next Y-51.78%
EPS Next 2Y22.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.17%
Revenue Next 2Y17.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.17, which indicates a correct valuation of CPSS.
Compared to the rest of the industry, the Price/Earnings ratio of CPSS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.65. CPSS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 3.90, which indicates a rather cheap valuation of CPSS.
Based on the Price/Forward Earnings ratio, CPSS is valued cheaply inside the industry as 96.08% of the companies are valued more expensively.
CPSS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 3.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPSS is on the same level as its industry peers.
92.16% of the companies in the same industry are more expensive than CPSS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.02 | ||
| EV/EBITDA | 376.83 |
4.3 Compensation for Growth
CPSS's earnings are expected to grow with 22.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y22.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CPSS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CONSUMER PORTFOLIO SERVICES
NASDAQ:CPSS (11/20/2024, 8:14:55 PM)
After market: 10.59 0 (0%)10.59
+0.19 (+1.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap226.73M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 3.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 7.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.21% | ||
| PM (TTM) | 5.93% | ||
| GM | 50.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-58.54%
EPS 3Y25.95%
EPS 5Y
EPS Q2Q%
EPS Next Y-51.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.25%
Revenue growth 3Y4.18%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y