Consumer Portfolio Services (CPSS) AI Stock Analysis

• Market Cap: $190.47M
• Dividend Yield: N/A
• Average Volume (3M): 22.31K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.07
• Revenue Growth: 16.94%
• EPS Growth: -10.46%
• Country: US
• Employees: 943
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.20
• Shares Outstanding: 22,071,047
• 10 Day Avg. Volume: 29,703
• 30 Day Avg. Volume: 22,306
• PEG Ratio: -0.21
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 0.99
• Enterprise Value/Market Cap: 18.35
• Enterprise Value/Revenue: 8.12
• Enterprise Value/Gross Profit: 16.78
• Enterprise Value/Ebitda: 120.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $8.50 ▲(2.41% Upside)

The score is driven primarily by mixed fundamentals—strong cash flow and solid gross/operating margins but meaningfully elevated leverage and thin net profitability. Technicals weigh on the outlook due to weak momentum (below major moving averages with negative MACD and low RSI). Valuation is supportive given the sub-10 P/E, and corporate updates are favorable (successful securitization and AI-focused strategy), but they do not offset the current leverage risk and bearish technical setup.

Positive Factors

Cash generation strength

Robust operating cash conversion and positive free cash flow growth provide durable internal funding for originations, servicing and capital needs. Strong cash generation reduces reliance on equity raises and supports repeat securitization financings and operational resilience over cycles.

High gross and operating margins

Sustained high gross and healthy operating margins reflect pricing power and efficiency in loan servicing and fee income. These structural margins create a durable buffer against credit variability and fund investments in analytics and dealer relationships over the medium term.

Strategic forward-flow partnership

A large forward-flow with a full-service credit union materially expands origination capacity and diversifies funding/credit mix into prime tiers. The deal leverages CPS’s AI-enabled platform, strengthening distribution, scaling originations and improving long-term franchise value and dealer alignment.

Negative Factors

Elevated financial leverage

Very high leverage materially increases interest expense sensitivity and reduces loss-absorption capacity. In downturns or rising rates, leverage constrains flexibility to hold loans, forces more frequent securitizations, and raises refinancing and creditor covenant risk over the medium term.

Thin net profitability

Low net margin and modest ROE limit retained earnings and capital buildup, making the firm more reliant on external funding to grow. Narrow profitability provides less cushion for credit losses or elevated costs, increasing vulnerability to prolonged stress in auto credit markets.

Concentration in sub-prime auto lending

A core focus on sub-prime auto receivables exposes the company to structural credit-cycle volatility and higher default risk versus prime lenders. Even with AI, portfolio quality can deteriorate in recessions, pressuring margins, funding spreads and capital needs over multiple quarters.

Consumer Portfolio Services Business Overview & Revenue Model

Company Description

Consumer Portfolio Services (CPSS) is a financial services company that specializes in the acquisition and servicing of retail automotive installment contracts. The company operates primarily in the auto finance sector, providing financing solutions to consumers through a network of automotive dealerships. CPSS offers a range of products and services including vehicle financing, loan servicing, and management solutions tailored for individuals with limited credit histories or those seeking subprime auto loans.

How the Company Makes Money

CPSS generates revenue primarily through the interest income earned on the automotive loans it originates and services. The company purchases retail installment contracts from automotive dealers, which provides it with a portfolio of loans that accrue interest over time. Additionally, CPSS earns revenue from late fees and other ancillary services associated with loan servicing. The company may also engage in securitization of its loan portfolio, which allows it to raise capital while transferring some of the risk associated with the loans. Strategic partnerships with automotive dealers play a crucial role in expanding its customer base, while the ability to offer competitive financing options helps attract consumers who may have difficulty obtaining credit through traditional channels.

Consumer Portfolio Services Financial Statement Overview

Summary

Stable revenue growth (1.86% TTM) and strong gross margin (63.04%) plus solid cash generation (operating cash flow to net income 3.92; free cash flow growth 5.77%). Offset by low net margin (4.60%) and high leverage (debt-to-equity 11.19; equity ratio 8.07%), which raises risk.

Income Statement

The income statement shows a stable revenue growth rate of 1.86% in the TTM period, with a strong gross profit margin of 63.04%. However, the net profit margin is relatively low at 4.60%, indicating potential profitability challenges. The EBIT and EBITDA margins are healthy at 20.51% and 20.67%, respectively, suggesting efficient operational management.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 11.19, indicating significant leverage, which could pose financial risks. The return on equity is modest at 6.49%, reflecting moderate profitability relative to shareholder equity. The equity ratio stands at 8.07%, showing a low proportion of equity financing compared to total assets.

Cash Flow

Cash flow analysis indicates a strong free cash flow growth rate of 5.77% in the TTM period. The operating cash flow to net income ratio is robust at 3.92, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is approximately 1.00, indicating efficient conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	430.36M	393.51M	352.01M	329.71M	267.81M	271.16M
Gross Profit	208.32M	207.56M	227.68M	270.29M	207.16M	155.71M
EBITDA	29.05M	28.29M	61.94M	117.81M	67.42M	21.90M
Net Income	19.49M	19.20M	45.34M	85.98M	47.52M	21.68M
Balance Sheet
Total Assets	3.81B	3.50B	2.91B	2.76B	2.16B	2.15B
Cash, Cash Equivalents and Short-Term Investments	151.89M	137.40M	125.43M	162.79M	176.55M	144.15M
Total Debt	3.46B	3.16B	2.57B	2.48B	1.95B	1.98B
Total Liabilities	3.50B	3.21B	2.63B	2.53B	1.99B	2.02B
Stockholders Equity	307.56M	292.77M	274.67M	228.39M	170.21M	133.36M
Cash Flow
Free Cash Flow	281.05M	233.32M	237.42M	213.78M	196.22M	238.74M
Operating Cash Flow	281.25M	233.75M	237.98M	215.93M	198.19M	238.77M
Investing Cash Flow	-725.13M	-769.71M	-359.53M	-713.90M	-115.36M	93.03M
Financing Cash Flow	316.73M	547.92M	84.19M	484.21M	-50.44M	-328.48M

Consumer Portfolio Services Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPSS, the sentiment is Positive. The current price of 8.3 is below the 20-day moving average (MA) of 8.74, below the 50-day MA of 8.83, and below the 200-day MA of 8.69, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 82.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPSS.

Consumer Portfolio Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	74 Outperform	$239.55M	6.03	10.79%	4.44%	15.52%	2.05%
YRD	73 Outperform	$343.03M	1.99	12.53%	10.37%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OPRT	65 Neutral	$239.18M	8.58	8.59%	―	-5.29%	―
RM	64 Neutral	$359.86M	8.98	11.43%	2.99%	9.63%	77.14%
CPSS	59 Neutral	$190.47M	10.91	6.58%	―	16.94%	-10.46%
LPRO	49 Neutral	$211.56M	-1.48	-102.53%	―	-82.33%	-3365.80%

Consumer Portfolio Services Corporate Events

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.

Consumer Portfolio Services Approves 2025 Equity Incentive Plan

On November 19, 2025, Consumer Portfolio Services, Inc. held its annual shareholder meeting where the 2025 Equity Incentive Plan was approved, allowing for various stock-based awards. Additionally, the meeting saw the election of nine directors, the ratification of Crowe LLP as auditors, and the approval of executive compensation plans, including an annual advisory vote on executive compensation.

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 Highlights AI in Loan Strategy

Consumer Portfolio Services has released an updated investor presentation, highlighting its strategic use of machine learning and AI to enhance loan quality and operational efficiency. The company emphasizes its strong market position in the sub-prime auto financing sector, with a focus on disciplined modeling frameworks and a significant historical data advantage, which supports its ability to navigate industry challenges and maintain profitability.

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.