Consumer Portfolio Services (CPSS) AI Stock Analysis

• Market Cap: $164.46M
• Dividend Yield: N/A
• Average Volume (3M): 13.97K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.14
• Revenue Growth: 16.13%
• EPS Growth: -28.76%
• Country: US
• Employees: 943
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Credit Services
• EPS (TTM): 0.20
• Shares Outstanding: 22,224,186
• 10 Day Avg. Volume: 14,296
• 30 Day Avg. Volume: 13,972
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 21.24
• Enterprise Value/Revenue: 8.27
• Enterprise Value/Gross Profit: 13.12
• Enterprise Value/Ebitda: 40.00
• 1Y Price Target: $8.50
• Price Target Upside: 9.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $8.50 ▲(9.82% Upside)

The overall stock score of 62 reflects moderate financial performance with strong cash flow management but high leverage. Technical indicators suggest bearish momentum, while valuation metrics indicate potential undervaluation. The earnings call and corporate events provide a positive outlook, highlighting strategic growth and operational efficiencies.

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

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	87.33M	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: Negative
• Last Price: 7.74
• 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 7.74 is below the 20-day moving average (MA) of 8.12, below the 50-day MA of 8.75, and below the 200-day MA of 9.65, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 41.50 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	81 Outperform	$250.83M	5.94	11.25%	4.17%	15.88%	-1.83%
YRD	76 Outperform	$500.29M	2.87	13.64%	6.74%	12.69%	-35.36%
RM	74 Outperform	$429.20M	12.35	9.81%	2.74%	7.32%	38.85%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
CPSS	62 Neutral	$164.46M	9.23	6.66%	―	16.13%	-28.76%
OPRT	56 Neutral	$297.06M	―	-1.26%	―	-5.87%	94.07%
LPRO	46 Neutral	$267.07M	72.92	-95.59%	―	-83.48%	-2400.00%

Consumer Portfolio Services Corporate Events

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 Closes $418M Securitization Deal

On July 28, 2025, Consumer Portfolio Services, Inc. announced the closing of its third term securitization of the year, amounting to $418.33 million in asset-backed notes secured by $433.50 million in automobile receivables. This transaction marks CPS’s 56th senior subordinate securitization since 2011 and the 39th consecutive securitization to receive a triple ‘A’ rating from at least two rating agencies on the senior class of notes. The securitization, conducted through the CPS Auto Receivables Trust 2025-C, involves five classes of notes with varying interest rates and credit enhancements, including overcollateralization and a reserve account. The transaction was a private offering and is significant for CPS as it reinforces its position in the securitization market, providing long-term funding for its automobile receivables.