Consumer Portfolio Services (CPSS) AI Stock Analysis

• Market Cap: $211.22M
• Dividend Yield: N/A
• Average Volume (3M): 21.90K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.12
• 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: 27,589
• 30 Day Avg. Volume: 21,901
• 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: 16.51
• Enterprise Value/Revenue: 8.10
• Enterprise Value/Gross Profit: 16.74
• Enterprise Value/Ebitda: 120.01
• 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: 71 Outperform
• Price Target: $9.50 ▲(14.46% Upside)

The overall stock score of 71 reflects strong technical analysis and valuation, supported by positive corporate events. Financial performance is stable but challenged by high leverage and low profitability margins. Continued focus on debt management and profitability improvement is essential.

Positive Factors

AI in Loan Strategy

The strategic use of AI and machine learning can improve loan quality and operational efficiency, strengthening CPSS's competitive edge in the sub-prime auto financing sector.

Securitization Success

Successful securitization efforts demonstrate CPSS's ability to leverage its expertise in structured financing, providing financial stability and enhancing market position.

Cash Flow Management

Efficient cash flow management with a robust free cash flow growth rate indicates strong cash generation ability, supporting long-term financial health.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially straining cash flow and limiting financial flexibility, which could impact long-term stability.

Low Profitability Margins

Low net profit margins indicate potential profitability challenges, which could affect CPSS's ability to sustain growth and invest in future opportunities.

New Debt Facility

Incurring new debt increases financial obligations, which could pressure CPSS's balance sheet and limit its ability to invest in growth initiatives.

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

Consumer Portfolio Services demonstrates stable revenue growth and efficient cash flow management. However, the company faces challenges with high leverage and relatively low profitability margins. Continued focus on improving net profit margins and managing debt levels will be crucial for enhancing financial stability and growth prospects.

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: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 8.82, below the 50-day MA of 8.38, and below the 200-day MA of 8.69, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 68.33 is Neutral, neither overbought nor oversold. The STOCH value of 86.57 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	79 Outperform	$251.88M	6.34	10.79%	4.34%	15.52%	2.05%
CPSS	71 Outperform	$211.22M	11.89	6.58%	―	16.94%	-10.46%
YRD	70 Outperform	$370.68M	2.15	12.53%	9.79%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RM	64 Neutral	$393.85M	9.83	11.43%	2.96%	9.63%	77.14%
OPRT	64 Neutral	$239.18M	8.23	8.59%	―	-5.29%	―
LPRO	43 Neutral	$190.29M	-1.28	-102.53%	―	-82.33%	-3365.80%

Consumer Portfolio Services Corporate Events

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.

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.

Consumer Portfolio Services Closes Fourth Term Securitization

On October 23, 2025, Consumer Portfolio Services, Inc. announced the closing of its fourth term securitization of the year, marking its 57th senior subordinate securitization since 2011. The transaction involved the issuance and sale of $384.6 million in asset-backed notes secured by $392.46 million in automobile receivables. The notes, issued by CPS Auto Receivables Trust 2025-D, were sold to qualified institutional buyers and received high ratings from Standard & Poor’s and DBRS Morningstar. This securitization reflects CPS’s continued ability to leverage its expertise in servicing automobile receivables, enhancing its market position and providing financial stability through structured financing.

Consumer Portfolio Services Incurs New Debt Facility

On October 22, 2025, Consumer Portfolio Services (CPS) incurred approximately $19.6 million of indebtedness under a revolving credit facility. CPS plans to continue incurring debt as it purchases motor vehicle receivables from dealers, indicating ongoing financial activity and strategic positioning in the market.