Consumer Portfolio Services (CPSS) AI Stock Analysis

• Market Cap: $175.17M
• Dividend Yield: N/A
• Average Volume (3M): 22.31K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.14
• Revenue Growth: 16.94%
• EPS Growth: -10.46%
• Country: US
• Employees: 943
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.21
• Shares Outstanding: 21,760,275
• 10 Day Avg. Volume: 29,703
• 30 Day Avg. Volume: 22,306
• PEG Ratio: -4.76
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 0.71
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 0.65
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.45
• Revenue Forecast (FY): $530.65M

• Rating: 64 Neutral
• Price Target: $8.50 ▲(2.41% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven mainly by solid and improving cash flow and a generally positive earnings outlook supported by expanded funding commitments and operating efficiency. It is tempered by compressed/volatile profitability and balance-sheet/credit-cycle sensitivity typical of subprime auto finance, plus technically weak price action below key moving averages.

Positive Factors

Cash generation

Material improvement in operating and free cash flow indicates stronger cash conversion and internally generated funding. Durable cash generation supports securitization cushions, working capital, and reinvestment into originations, providing a buffer through credit cycles and enabling execution of growth plans.

Funding & liquidity

Substantial committed funding lines materially reduce execution risk for planned portfolio growth. Multi-year forward-flow and a warehouse line provide predictable capacity to scale originations, lower the chance of funding dislocations, and support multi-quarter growth initiatives and securitization cadence.

Analytics-driven origination lift

Implementation of an AI-driven credit model that sustainably raises approvals and fundings suggests structural improvements to underwriting and throughput. When combined with lower core OpEx as a percent of portfolio, this can drive durable unit-cost declines and scalable origination growth over multiple quarters.

Negative Factors

Legacy vintage drag

Poor performance of 2022–2023 vintages is a multi-quarter structural headwind to recoveries and loss trends. As these vintages run off, recoveries and net charge-offs should improve, but until then they will constrain margins and cash recoveries and keep credit volatility elevated through 2026.

Historical leverage risk

A history of extreme leverage creates structural sensitivity to funding costs and market access. The reported 2025 zero-debt snapshot, if an outlier, may not reflect durable de-risking; capital structure remains a core vulnerability in stressed funding or worsening credit scenarios over the next several quarters.

Volatile profitability

Wide swings in margins and flat net income despite large revenue gains point to inconsistent earnings quality. Profitability is exposed to funding costs, fair-value marks, and credit vintage effects, making medium-term margin sustainability uncertain until credit and funding dynamics stabilize.

Consumer Portfolio Services Business Overview & Revenue Model

Company Description

Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It is involved in the purchase and service of retail automobile contracts originated by franchised automobile dealers and select independent dealers in the sale of new and used automobiles, light trucks, and passenger vans. The company, through its automobile contract purchases, offers indirect financing to the customers of dealers with limited credit histories or past credit problems. It serves as an alternative source of financing for dealers, facilitating sales to customers who are not able to obtain financing from commercial banks, credit unions, and the captive finance companies. The company also acquires installment purchase contracts in four merger and acquisition transactions; purchases immaterial amounts of vehicle purchase money loans from non-affiliated lenders. and offers financing directly to sub-prime consumers to facilitate their purchase of a new or used automobile, light truck, or passenger van. It services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was founded in 1991 and is based in Las Vegas, Nevada.

How the Company Makes Money

CPSS primarily makes money by acquiring auto loan receivables (retail installment sales contracts) at a price designed to generate returns over time and then collecting scheduled payments of principal and interest from borrowers while servicing those accounts. Key revenue streams generally include: (1) interest income and finance charges earned on the outstanding loan portfolio; (2) fee-based servicing and related income tied to administering, collecting, and managing the receivables (including ancillary/other servicing-related fees where applicable); and (3) gains or income associated with financing activities—most notably securitizations—where CPSS packages pools of auto loan receivables into asset-backed securities and may realize income from the retained interests or from structuring economics depending on the transaction. Funding and profitability are significantly influenced by the company’s cost of capital (e.g., interest expense on warehouse lines/credit facilities and securitization debt), the performance of the underlying borrowers (credit losses/charge-offs and recoveries), and operational effectiveness in collections. Significant partnerships/factors contributing to earnings include relationships with automobile dealers and originators that supply receivables for purchase, and relationships with capital markets participants and lenders that provide warehouse funding and securitization execution.

Consumer Portfolio Services Financial Statement Overview

Summary

Cash generation is the clearest strength (higher operating cash flow and sharply improved free cash flow), but profitability has compressed materially with volatile margins, and historical high leverage adds risk (despite a potentially improved latest-period debt picture that appears inconsistent versus other disclosures).

Income Statement

Revenue growth has been strong recently, accelerating from roughly 7% (2023) and 12% (2024) to about 96% in 2025. However, profitability has been volatile: net margin declined sharply from ~26% (2022) to ~13% (2023) and ~5% (2024–2025), with net income staying roughly flat in 2024–2025 despite the big revenue jump. Reported gross and operating margins also swing widely year to year, suggesting earnings quality and sustainability are less predictable.

Balance Sheet

The company has historically operated with very high leverage (debt-to-equity around 9–15x from 2020–2024), which is a key risk for a credit-focused business in stressed funding/credit environments. Equity has been building steadily over time, and return on equity has been positive but trending lower versus the 2021–2023 period. The 2025 balance sheet shows zero total debt, which—if accurate—would be a major de-risking, but it is a sharp break from prior years and warrants caution when interpreting trend stability.

Cash Flow

Cash generation looks solid and improving: operating cash flow rose from ~$234M (2024) to ~$289M (2025), and free cash flow also increased materially (2025 free cash flow growth ~283%). Free cash flow has consistently tracked close to reported earnings across the years provided, which supports earnings cash-conversion. The main weakness is variability in free cash flow growth (including declines in 2021 and 2024), indicating some cyclicality in cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	434.47M	393.51M	352.01M	329.71M	267.81M
Gross Profit	429.01M	207.56M	227.68M	270.29M	207.16M
EBITDA	260.03M	28.29M	61.94M	117.81M	67.42M
Net Income	19.32M	19.20M	45.34M	85.98M	47.52M
Balance Sheet
Total Assets	3.86B	3.50B	2.91B	2.76B	2.16B
Cash, Cash Equivalents and Short-Term Investments	6.32M	137.40M	125.43M	162.79M	176.55M
Total Debt	0.00	3.16B	2.57B	2.48B	1.95B
Total Liabilities	3.55B	3.21B	2.63B	2.53B	1.99B
Stockholders Equity	309.54M	292.77M	274.67M	228.39M	170.21M
Cash Flow
Free Cash Flow	289.00M	233.32M	237.42M	213.78M	196.22M
Operating Cash Flow	289.00M	233.75M	237.98M	215.93M	198.19M
Investing Cash Flow	-590.12M	-769.71M	-359.53M	-713.90M	-115.36M
Financing Cash Flow	335.93M	547.92M	84.19M	484.21M	-50.44M

Consumer Portfolio Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPSS, the sentiment is Neutral. The current price of 8.3 is above the 20-day moving average (MA) of 8.09, below the 50-day MA of 8.46, and below the 200-day MA of 8.60, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 42.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CPSS.

Consumer Portfolio Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	73 Outperform	$307.61M	2.91	12.66%	10.37%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MFIN	67 Neutral	$218.36M	5.44	11.82%	4.44%	15.52%	2.05%
CPSS	64 Neutral	$175.17M	10.57	6.34%	―	16.94%	-10.46%
OPRT	64 Neutral	$202.03M	10.05	6.66%	―	-5.29%	―
RM	62 Neutral	$295.72M	8.66	12.12%	2.99%	9.63%	77.14%
LPRO	52 Neutral	$175.34M	-43.40	-102.53%	―	-82.33%	-3365.80%

Consumer Portfolio Services Corporate Events

Consumer Portfolio Services Completes $50 Million Residual Securitization

On March 4, 2026, Consumer Portfolio Services announced it had closed a $50 million securitization of residual interests from four securitizations originally issued between January and October 2025. In a private offering to qualified institutional buyers, CPS sold 8.75% coupon asset-backed notes secured by an 80% interest in a majority-owned affiliate that holds residual interests, including spread account balances and over-collateralization, with monthly payments structured to preserve a minimum collateral ratio and characterized by the company as part of its ordinary course of business.

The most recent analyst rating on (CPSS) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Consumer Portfolio Services stock, see the CPSS Stock Forecast page.

Consumer Portfolio Services Adds Veteran Finance Expert to Board

On February 18, 2026, Consumer Portfolio Services, Inc. appointed Scott W. Carnahan to its board of directors to fill the vacancy created by the prior resignation of William B. Roberts, with Carnahan’s term running until the 2026 annual meeting of shareholders or until a successor is chosen. Carnahan brings more than 40 years of accounting, consulting, regulatory compliance, and executive leadership experience in financial institutions, including senior roles at FTI Consulting, Inc. and KPMG LLP, and his appointment follows the company’s prior engagement of FTI for consulting services, signaling a continued emphasis on sophisticated financial oversight and governance expertise at the board level.

Carnahan, who previously advised on over $2 trillion in structured finance transactions, joins the board without an initial assignment to standing committees and will be compensated under the company’s standard non-employee director compensation program. The company had paid FTI approximately $127,000 in fiscal 2024 and $173,000 in fiscal 2025 for consulting services before that engagement ended in September 2025, underscoring the depth of Carnahan’s familiarity with the company’s financial and operational landscape as he assumes his new oversight role.

The most recent analyst rating on (CPSS) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Consumer Portfolio Services stock, see the CPSS Stock Forecast page.

Consumer Portfolio Services announces director William Roberts’ resignation

On January 30, 2026, Consumer Portfolio Services, Inc. announced that director William B. Roberts resigned from the company’s board, effective the same day. The company emphasized that his departure did not stem from any dispute or disagreement over its operations, policies or practices, and expressed appreciation for his many years of service, suggesting an orderly governance transition with no indicated operational or strategic disruption.

The most recent analyst rating on (CPSS) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Consumer Portfolio Services stock, see the CPSS Stock Forecast page.

Consumer Portfolio Services completes major 2026 auto securitization

On January 27, 2026, Consumer Portfolio Services closed its first term securitization of 2026, a $345.61 million senior subordinate asset-backed transaction backed by $352.66 million of automobile receivables it originated and purchased from auto dealers. The deal, issued through CPS Auto Receivables Trust 2026-A and structured into five note classes, marks the company’s 58th senior subordinate securitization since 2011 and its 41st consecutive transaction in which the senior tranche earned triple-A ratings from at least two agencies, underscoring CPS’s established track record as a servicer and issuer in the subprime auto finance market; the notes, treated as long-term secured financings of CPS, benefit from layered credit enhancement via overcollateralization and a reserve account, while being obligations solely of the trust rather than CPS or its subsidiary, a structure that helps isolate the securitized assets from the parent’s other creditors and provides institutional investors with highly rated exposure to a fixed pool of amortizing auto receivables.

The most recent analyst rating on (CPSS) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Consumer Portfolio Services stock, see the CPSS Stock Forecast page.