Consumer Portfolio Services (CPSS) AI Stock Analysis

• Market Cap: $196.63M
• Dividend Yield: N/A
• Average Volume (3M): 20.62K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.25
• Revenue Growth: 13.23%
• EPS Growth: -47.36%
• Country: US
• Employees: 943
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 0.19
• Shares Outstanding: 21,559,795
• 10 Day Avg. Volume: 17,648
• 30 Day Avg. Volume: 20,617
• PEG Ratio: N/A
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.82
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.85
• Enterprise Value/Ebitda: 1.42
• 1Y Price Target: $11.50
• Price Target Upside: 26.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $10.50 ▲(15.13%Upside)

The overall stock score is driven by strong financial performance and strategic corporate events. Earnings call insights and fair valuation further support the company's stability, although technical indicators suggest a cautious outlook.

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

CPS generates revenue primarily through the interest earned on the auto loans it finances. The company purchases retail installment sales contracts from dealerships at a discount and earns money by collecting interest payments from borrowers. Additionally, CPS derives income from servicing fees, which are fees charged for managing the loan accounts. The company may also earn revenue through the sale of loans to third-party investors, securitization of loan pools, and other financial activities related to its loan portfolio. Key factors contributing to its earnings include interest rate spreads, credit performance of the loan portfolio, and effective management of operating expenses.

Consumer Portfolio Services Financial Statement Overview

Summary

Consumer Portfolio Services exhibits commendable financial stability with strong operating cash flows and improved revenue figures, but faces risks from fluctuating profitability margins and reliance on debt financing.

Income Statement

The company has shown a mixed performance in terms of revenue growth, with a significant increase from 2023 to 2024, yet experiencing fluctuations in previous years. The gross profit margin remains strong, indicating effective cost management. However, the net profit margin has been volatile, showing a recent decrease due to rising expenses or other factors impacting net income. EBIT and EBITDA margins are moderate, reflecting steady operational efficiency but with room for improvement.

Balance Sheet

The balance sheet reflects a strong equity base with a low debt-to-equity ratio, especially in 2024, which indicates reduced financial leverage and lower risk. However, the equity ratio has been modest, suggesting that a significant portion of assets is financed by debt. Return on equity has shown variability, highlighting challenges in achieving consistent profitability relative to equity.

Cash Flow

The cash flow statement demonstrates robust operating cash flow generation, supporting strong free cash flow figures. There is a positive trajectory in free cash flow growth, indicating efficient cash management and capacity to fund operations without reliance on external financing. The operating cash flow to net income ratio is solid, suggesting effective conversion of earnings into cash.

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

Consumer Portfolio Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.12
• 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 Negative. The current price of 9.12 is below the 20-day moving average (MA) of 9.56, below the 50-day MA of 9.47, and below the 200-day MA of 9.92, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 38.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPSS.

Consumer Portfolio Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	80 Outperform	$223.07M	6.00	10.39%	4.47%	13.93%	-23.70%
YRD	74 Outperform	$549.55M	2.98	14.69%	0.96%	12.45%	-36.64%
RM	72 Outperform	$318.35M	10.14	9.51%	3.74%	6.57%	44.84%
CPSS	69 Neutral	$196.63M	11.43	6.69%	―	13.23%	-47.36%
Sector *	58 Neutral	HK$92.47B	5.78	-3.20%	4.64%	5.50%	-56.25%
LPRO	53 Neutral	$309.05M	72.92	-95.74%	―	-83.91%	-1062.77%
OPRT	51 Neutral	$276.38M	―	-11.37%	―	-5.79%	59.24%

Consumer Portfolio Services Corporate Events

Consumer Portfolio Services Highlights AI in Loan Management

Consumer Portfolio Services has released an updated investor presentation as of March 2025, highlighting its strategic use of machine learning and artificial intelligence to enhance loan quality and risk management. The company emphasizes its strong market position with a 54-quarter profitability streak and a significant presence in the sub-prime auto financing sector, indicating robust demand for its lending programs and a solid operational framework.

Consumer Portfolio Services Closes Major Securitization Deal

On May 12, 2025, Consumer Portfolio Services, Inc. announced the closing of its second term securitization in 2025, marking its 55th senior subordinate securitization since 2011. The transaction involved the sale of $419.95 million in asset-backed notes, secured by $439.29 million in automobile receivables, and was rated highly by Standard & Poor’s and DBRS Morningstar. This securitization is significant for CPS as it continues to strengthen its position in the market by securing financing through structured transactions, which are crucial for its operations and growth strategy.

Consumer Portfolio Services Finalizes 2024 Executive Compensation

Consumer Portfolio Services, Inc. has finalized the non-equity incentive plan compensation for its executive officers for the fiscal year 2024. The company updated its Summary Compensation Table to include these amounts, which were not available when the initial 2024 10-K was filed. The CEO’s total compensation for FY2024 was $4,165,611, resulting in a CEO pay ratio of 55.5 to 1, calculated against a newly identified median employee due to changes in employment status.