Consumer Portfolio Services, Inc. Fundamental Analysis (NASDAQ: CPSS)
Consumer Portfolio Services, Inc. Fundamental Analysis (NASDAQ: CPSS)
Consumer Portfolio Services, Inc. (NASDAQ: CPSS) shows moderate financial fundamentals with a PE ratio of 9.46, profit margin of 4.79%, and ROE of 6.91%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 8.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CPSS's fundamental strength across five key dimensions:
Efficiency Score
WeakCPSS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCPSS trades at attractive valuation levels.
Growth Score
ModerateCPSS shows steady but slowing expansion.
Financial Health Score
WeakCPSS carries high financial risk with limited liquidity.
Profitability Score
WeakCPSS struggles to sustain strong margins.
Key Financial Metrics
Is CPSS Expensive or Cheap?
P/E Ratio
CPSS trades at 9.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CPSS's PEG of 0.95 indicates potential undervaluation.
Price to Book
The market values Consumer Portfolio Services, Inc. at 0.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -24.27 times EBITDA. This is generally considered low.
How Well Does CPSS Make Money?
Net Profit Margin
For every $100 in sales, Consumer Portfolio Services, Inc. keeps $4.79 as profit after all expenses.
Operating Margin
Core operations generate 34.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.91 in profit for every $100 of shareholder equity.
ROA
Consumer Portfolio Services, Inc. generates $0.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Consumer Portfolio Services, Inc. generates strong operating cash flow of $350.46M, reflecting robust business health.
Free Cash Flow
Consumer Portfolio Services, Inc. generates strong free cash flow of $350.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16.15 in free cash annually.
FCF Yield
CPSS converts 1.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
12.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How CPSS Stacks Against Its Sector Peers
| Metric | CPSS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.46 | 21.17 | Better (Cheaper) |
| ROE | 6.91% | 668.00% | Weak |
| Net Margin | 4.79% | 876.00% | Weak |
| Debt/Equity | 12.56 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.23 | 905.28 | Weak Liquidity |
| ROA | 0.49% | 4787782.00% | Weak |
CPSS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Consumer Portfolio Services, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
63.03%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-7.91%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
25.03%
Industry Style: Value, Dividend, Cyclical
High Growth