Consumer Portfolio Services (CPSS)
NASDAQ:CPSS
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Consumer Portfolio Services
(NASDAQ:CPSS)
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Rating:67Neutral
Price Target:
$11.00
▲(32.53% Upside)
Action:Reiterated
Date:05/21/26
The score reflects solid technical momentum and an inexpensive P/E, supported by constructive growth/margin initiatives and funding availability discussed on the earnings call. These positives are moderated by meaningful financial risk from historically high leverage and compressed/volatile profitability, which are the primary constraints on a higher score.
Positive Factors
Strong free cash flow generation
Consistent, high free cash flow and near-1.0x conversion of earnings to FCF give CPS durable internal funding to buy receivables, support securitizations, fund operations and cover distributions. Strong cash conversion cushions credit cycles and underpins strategic flexibility over months.
Negative Factors
Very high leverage and thin equity cushion
Sustained, very high leverage leaves limited equity buffer against credit losses or funding stress. Reliance on securitization and warehouse funding raises refinancing and interest-rate risk, constraining strategic options and increasing sensitivity to adverse credit cycles over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, high free cash flow and near-1.0x conversion of earnings to FCF give CPS durable internal funding to buy receivables, support securitizations, fund operations and cover distributions. Strong cash conversion cushions credit cycles and underpins strategic flexibility over months.
Read all positive factors
Consumer Portfolio Services (CPSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$211.13M
Dividend YieldN/A
Average Volume (3M)22.31K
Price to Earnings (P/E)10.6
Beta (1Y)0.38
Revenue Growth12.28%
EPS Growth1.64%
CountryUS
Employees943
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.92
Shares Outstanding21,698,565
10 Day Avg. Volume29,703
30 Day Avg. Volume22,306
Financial Highlights & Ratios
PEG Ratio-4.76
Price to Book (P/B)0.66
Price to Sales (P/S)0.48
P/FCF Ratio0.71
Enterprise Value/Market Cap18.46
Enterprise Value/Revenue8.86
Enterprise Value/Gross Profit14.75
Enterprise Value/Ebitda43.24
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.45
Revenue Forecast (FY)$530.65M
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...
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 th...
Consumer Portfolio Services Earnings Call Summary
Earnings Call Date:Mar 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted multiple constructive developments: revenue and interest-income growth, material improvements in core pretax results when excluding nonrecurring fair-value marks, stronger liquidity and funding commitments (warehouse line and prime forward flow), portfolio growth, and improved operating efficiency and credit performance in recent vintages aided by a new AI-driven credit model. Headwinds include higher interest expense from increased securitization debt, muted recoveries driven by legacy 2022–2023 vintages, slightly higher charge-offs, and flat net income/EPS year-over-year. On balance, positive operational and funding momentum and improving vintage performance outweigh the near-term cost and legacy credit pressures.Positive Updates
Revenue Growth
Q4 revenues of $109.44M up from $105.3M (≈3.9% increase); full year 2025 revenues $434M, a 10% increase versus $393M in 2024.
Negative Updates
Rising Interest Expense and Higher Debt
Interest expense increased 13% in Q4 ($59M vs $53M) driven by a 15% increase in securitization debt to $2.986B, raising financing costs and pressuring margins.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth
Q4 revenues of $109.44M up from $105.3M (≈3.9% increase); full year 2025 revenues $434M, a 10% increase versus $393M in 2024.
Read all positive updates
Company Guidance
Management guided that 2026 should be a year of substantial growth and margin improvement, supported by a new $150M Capital One warehouse and a $900M prime forward-flow commitment (up to $50M/month or $600M/year; $900M over 18 months), with the portfolio “nearly $4B” (fair value portfolio $3.655B, +10% YoY) yielding 11.4% net of expected losses; they plan to grow originations and fundings by hiring sales reps, adding dealers, and boosting applications from 250k/month to 325k/month, leverage the Gen9 credit model (approvals +11%, fundings +~8.4%), and expect Assets Under Management growth (AUM rose ~8.24% YoY to ≈$3.7B) while driving OpEx efficiency (core OpEx $177M FY, core OpEx/managed portfolio 4.8% vs 5.6% prior; employee cost 2.4% of portfolio) and liquidity (cash + restricted cash $172.2M); credit goals include running off 2022–2023 paper to de minimis by year-end 2026 to lift recoveries (overall recoveries ~28–30% but by vintage Q4: 2022 20.5%, 2023 22.9%, 2024 36.3%, 2025 43.4%), sustaining strong credit metrics (DQ>30 days 14.77%, annualized net charge-offs 7.76%) and improving margins as rates ease (interest income on FV +16% YoY; FY revenue $434M, +10% YoY; FY pretax $28M; FY net income $19.3M; diluted EPS $0.80; securitization debt $2.986B, +15% YoY; shareholders’ equity $309.5M, book value ≈$13/share).Consumer Portfolio Services Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
34
Negative
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 439.93M | 427.97M | 393.51M | 352.01M | 329.71M | 267.81M |
| Gross Profit | 264.33M | 426.21M | 207.56M | 227.68M | 270.29M | 207.16M |
| EBITDA | 90.15M | 260.03M | 28.29M | 61.94M | 117.81M | 67.42M |
| Net Income | 20.17M | 19.32M | 19.20M | 45.34M | 85.98M | 47.52M |
Balance Sheet | ||||||
| Total Assets | 4.05B | 3.86B | 3.50B | 2.91B | 2.76B | 2.16B |
| Cash, Cash Equivalents and Short-Term Investments | 6.94M | 6.32M | 137.40M | 125.43M | 162.79M | 176.55M |
| Total Debt | 3.69B | 3.51B | 3.16B | 2.57B | 2.48B | 1.95B |
| Total Liabilities | 3.74B | 3.55B | 3.21B | 2.63B | 2.53B | 1.99B |
| Stockholders Equity | 314.35M | 309.54M | 292.77M | 274.67M | 228.39M | 170.21M |
Cash Flow | ||||||
| Free Cash Flow | 297.99M | 289.00M | 233.32M | 237.42M | 213.78M | 196.22M |
| Operating Cash Flow | 298.91M | 289.00M | 233.75M | 237.98M | 215.93M | 198.19M |
| Investing Cash Flow | -646.68M | -590.12M | -769.71M | -359.53M | -713.90M | -115.36M |
| Financing Cash Flow | 349.70M | 335.93M | 547.92M | 84.19M | 484.21M | -50.44M |
Consumer Portfolio Services Technical Analysis
Positive
8.30
Price Trends
8.84
Positive
8.65
Positive
8.48
Positive
Market Momentum
0.25
Positive
56.51
Neutral
31.05
Neutral
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 9.87, below the 50-day MA of 8.84, and below the 200-day MA of 8.48, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 31.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPSS.
Consumer Portfolio Services Risk Analysis
Consumer Portfolio Services disclosed 34 risk factors in its most recent earnings report. Consumer Portfolio Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Consumer Portfolio Services Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $228.72M | 5.65 | 9.85% | 4.44% | 9.67% | -6.40% | |
69 Neutral | $336.56M | 6.81 | 13.16% | 2.99% | 10.51% | 53.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $211.13M | 10.62 | 6.34% | ― | 12.28% | 1.64% | |
60 Neutral | $129.26M | 8.24 | 0.54% | 10.37% | -1.41% | -98.13% | |
59 Neutral | $238.30M | 14.35 | 4.63% | ― | -3.81% | ― | |
53 Neutral | $287.27M | -50.76 | -7.04% | ― | 405.40% | 96.15% |
* Financial Sector Average
CPSS
Consumer Portfolio Services
9.84
0.79
8.73%
MFIN
Medallion Financial
9.67
0.96
11.07%
RM
Regional Management
36.28
10.70
41.85%
YRD
Yiren Digital
1.47
-4.58
-75.70%
LPRO
Open Lending
2.29
0.50
27.93%
OPRT
Oportun Financial
5.29
-1.36
-20.45%
Consumer Portfolio Services Corporate Events
Business Operations and StrategyFinancial Disclosures
Consumer Portfolio Services Highlights AI-Driven Subprime Lending Strategy
Positive
May 20, 2026
Consumer Portfolio Services released a March 2026 investor presentation detailing its business model, portfolio metrics and market positioning in the U.S. subprime auto lending space, where it provides indirect financing to dealers in 47 states an...
Business Operations and StrategyPrivate Placements and Financing
Consumer Portfolio Services Completes Major 2026 Securitization Deal
Positive
Apr 24, 2026
On April 22, 2026, Consumer Portfolio Services closed its second term securitization of 2026, a $514.07 million senior subordinate asset-backed note offering backed by $526.17 million in automobile receivables originated by the company and sold th...
Business Operations and StrategyPrivate Placements and Financing
Consumer Portfolio Services Expands Revolving Credit Facility Capacity
Positive
Apr 9, 2026
On April 6, 2026, Consumer Portfolio Services announced that it had amended its two-year revolving credit agreement with Capital One, N.A. and a subordinate lender on April 3, 2026, increasing the warehouse credit facility’s capacity from $1...
Executive/Board ChangesRegulatory Filings and Compliance
Consumer Portfolio Services Updates Executive Incentive Compensation Plans
Neutral
Apr 2, 2026
Consumer Portfolio Services disclosed finalized non-equity incentive plan compensation for its top executives for the fiscal year ended December 31, 2025, updating figures that had been left open in its March 16, 2026 annual filing. The revised co...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Consumer Portfolio Services Updates Investor Presentation on Subprime Lending
Positive
Mar 24, 2026
On Dec. 31, 2025, Consumer Portfolio Services released an updated 19‑slide investor presentation outlining its subprime auto lending business, portfolio metrics and operating model, which it also posted on its investor relations website. The...
Business Operations and StrategyPrivate Placements and Financing
Consumer Portfolio Services Completes $50 Million Residual Securitization
Positive
Mar 4, 2026
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...
Executive/Board Changes
Consumer Portfolio Services Adds Veteran Finance Expert to Board
Positive
Feb 24, 2026
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 meet...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.