Consumer Portfolio Services (CPSS) AI Stock Analysis

• Market Cap: $188.46M
• Dividend Yield: N/A
• Average Volume (3M): 23.74K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.13
• Revenue Growth: 16.13%
• EPS Growth: -28.76%
• Country: US
• Employees: 943
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• Shares Outstanding: 22,224,186
• 10 Day Avg. Volume: 24,229
• 30 Day Avg. Volume: 23,742
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 63 Neutral
• Price Target: $8.50 ▲(15.02% Upside)

The overall stock score is primarily influenced by moderate financial performance, characterized by strong cash flow management but offset by high leverage and low net profit margins. The technical analysis indicates short-term positive momentum, but longer-term trends remain bearish. The valuation suggests the stock is reasonably priced, contributing positively to the score.

Consumer Portfolio Services Business Overview & Revenue Model

Company Description

Consumer Portfolio Services (CPSS) is a leading provider of automotive financing solutions in the United States. The company specializes in purchasing and servicing retail automotive installment contracts, primarily focusing on subprime and near-prime borrowers. CPSS operates within the automotive finance sector, offering a range of services that include loan origination, servicing, and collections, aimed at facilitating vehicle ownership for consumers who may have limited access to traditional financing options.

How the Company Makes Money

Consumer Portfolio Services generates revenue primarily through the acquisition and servicing of automotive retail installment contracts. The company purchases these contracts from automotive dealers and then collects payments from the borrowers. CPSS earns interest income from the loans, which is a significant portion of its revenue. Additionally, the company may generate fees through servicing activities, late payment fees, and other ancillary services. Key partnerships with automotive dealers and finance companies also enhance CPSS's ability to acquire contracts and expand its market reach, contributing to its overall earnings.

Consumer Portfolio Services Financial Statement Overview

Summary

Consumer Portfolio Services demonstrates moderate financial health with strong cash flow management and improving operational efficiency. However, high leverage and low net profit margins are areas of concern. The company should focus on reducing debt levels and enhancing profitability to strengthen its financial position.

Income Statement

The company shows a moderate revenue growth rate of 3.4% TTM, with a strong gross profit margin of 63%. However, the net profit margin is relatively low at 4.6%, indicating potential challenges in controlling costs or increasing profitability. The EBIT and EBITDA margins have improved significantly compared to previous periods, suggesting better operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 11.19, indicating significant leverage, which could pose financial risks. Return on equity is modest at 6.6%, reflecting average profitability relative to shareholder equity. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

The cash flow statement shows a healthy free cash flow growth rate of 4.4% TTM, and both operating and free cash flow to net income ratios are strong, indicating efficient cash generation relative to net income. This suggests good liquidity and the ability to cover financial obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	422.52M	393.51M	352.01M	329.71M	267.81M	271.16M
Gross Profit	266.35M	207.56M	227.68M	270.29M	207.16M	155.71M
EBITDA	87.58M	28.29M	61.94M	117.81M	67.42M	21.90M
Net Income	19.43M	19.20M	45.34M	85.98M	47.52M	21.68M
Balance Sheet
Total Assets	3.76B	3.49B	2.90B	2.75B	2.16B	2.15B
Cash, Cash Equivalents and Short-Term Investments	15.77M	11.71M	6.17M	13.49M	29.93M	13.47M
Total Debt	3.39B	3.13B	2.57B	2.47B	1.95B	1.97B
Total Liabilities	3.46B	3.20B	2.63B	2.52B	1.99B	2.01B
Stockholders Equity	303.10M	292.77M	274.67M	228.39M	170.21M	133.36M
Cash Flow
Free Cash Flow	266.27M	233.32M	237.42M	213.78M	196.22M	238.74M
Operating Cash Flow	266.09M	233.75M	237.98M	215.93M	198.19M	238.77M
Investing Cash Flow	-812.73M	-769.71M	-359.53M	-713.90M	-115.36M	93.03M
Financing Cash Flow	440.19M	547.92M	84.19M	484.21M	-50.44M	-328.48M

Consumer Portfolio Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 7.39 is below the 20-day moving average (MA) of 8.05, below the 50-day MA of 7.98, and below the 200-day MA of 9.02, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 60.83 is Neutral, neither overbought nor oversold. The STOCH value of 89.73 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	76 Outperform	$230.23M	5.79	10.79%	4.56%	15.52%	2.05%
YRD	75 Outperform	$453.63M	2.56	13.64%	8.30%	12.69%	-35.36%
RM	74 Outperform	$400.49M	9.90	11.43%	3.04%	9.63%	77.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CPSS	63 Neutral	$188.46M	10.81	6.66%	―	16.13%	-28.76%
OPRT	51 Neutral	$206.97M	7.19	8.59%	―	-5.29%	―
LPRO	38 Underperform	$207.98M	―	-95.59%	―	-83.48%	-2400.00%

Consumer Portfolio Services Corporate Events

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.

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 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.

The most recent analyst rating on (CPSS) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Consumer Portfolio Services stock, see the CPSS Stock Forecast page.

Consumer Portfolio Services Updates on AI and Market Position

Consumer Portfolio Services released a presentation updating stakeholders on its operations and market position as of June 30, 2025. The presentation highlights the company’s use of AI and machine learning for credit decisions, its strong management team, and its performance in the sub-prime auto financing market, emphasizing its role as a key player in a highly regulated and capital-intensive industry.

Consumer Portfolio Services’ High Debt Levels Pose Significant Business Risks

Consumer Portfolio Services faces significant business risks due to its substantial indebtedness, which stood at approximately $3,392.8 million as of June 30, 2025. This high level of debt, primarily consisting of securitization trust debt and warehouse lines of credit, increases the company’s vulnerability to adverse economic conditions and limits its financial flexibility. The need to allocate a large portion of cash flow to debt servicing reduces funds available for other corporate purposes, potentially placing the company at a competitive disadvantage. Despite management’s confidence in servicing the debt, failure to generate sufficient operating profits could impair the company’s ability to meet its debt obligations, posing a material adverse effect.

Consumer Portfolio Services Reports Strong Q2 2025 Results

Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories, primarily purchasing retail installment sales contracts from franchised automobile dealerships.