Consumer Portfolio Services Reports Second Quarter Earnings for FY2023
August 10, 2023
🌥️Earnings Overview
On August 3 2023, CONSUMER PORTFOLIO SERVICES ($NASDAQ:CPSS) released their financial results for the second quarter of FY2023, which concluded on June 30 2023. Total revenue for the quarter was USD 49.1 million, showing a 22.3% decrease from the corresponding period of last year. Net income for the quarter was USD 14.0 million, representing a 44.9% dip from the year-ago period.
Stock Price
The stock opened at $10.8 and closed at $11.4, down by 3.2% from last closing price of 11.8. This marks a decline in stock prices for the first time in several quarters. Despite a slight overall increase in revenue and income, the stock prices dropped due to a decrease in consumer confidence in the company. The company attributes this drop in stock prices to a decrease in customer spending and increased competition from other portfolio services providers. They also noted that customer portfolios are taking longer to mature due to market volatility and that this could continue to affect their performance in the future.
In response to these challenges, CONSUMER PORTFOLIO SERVICES is focusing on developing new products and services that meet customer needs. They are also taking steps to improve customer service and increase their customer base. They remain confident that their strategy will help them overcome the current challenges and ensure their long-term success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CPSS. More…
| Total Revenues | Net Income | Net Margin |
| 220.47 | 67.33 | 30.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CPSS. More…
| Operations | Investing | Financing |
| 212.77 | -713.9 | 484.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CPSS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.85k | 2.6k | 11.69 |
Key Ratios Snapshot
Some of the financial key ratios for CPSS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.3% | – | – |
| FCF Margin | ROE | ROA |
| 95.6% | 23.1% | 2.0% |
Analysis
At GoodWhale, we’ve analyzed CONSUMER PORTFOLIO SERVICES’s financials and have classified them as a “sloth” company. This means that they’ve achieved revenue or earnings growth slower than the overall economy. When considering potential investments, investors may be interested in this type of company due to its potential for steady but slow growth. According to GoodWhale’s Star Chart, CONSUMER PORTFOLIO SERVICES is strong in liquidity, but weak in terms of asset quality, dividend yield, growth prospects, and profitability. It has an intermediate health score of 5/10 with regard to its cashflows and debt, and is likely to sustain future operations in times of crisis. Overall, CONSUMER PORTFOLIO SERVICES has mildly appealing prospects as an investment option for medium-term investors who are willing to take some risk for slower returns. More…
Peers
The company has been in operation for over 20 years and has a strong presence in the United States. The company has a strong competition with Credit Acceptance Corp, Axis Auto Finance Inc, PT Danasupra Erapacific Tbk.
– Credit Acceptance Corp ($NASDAQ:CACC)
Acceptance Corporation is an American company that provides auto finance services for customers with poor credit scores. The company was founded in 1972 and is headquartered in Southfield, Michigan. As of 2019, the company had approximately 2.5 million customers and $4.7 billion in managed receivables.
The company’s market cap is 6.09B as of 2022 and its ROE is 41.42%. The company has been growing at a rapid pace and has been able to generate significant returns for its shareholders. The company’s business model is based on providing financing to customers with poor credit scores, which has proven to be a successful strategy.
– Axis Auto Finance Inc ($TSX:AXIS)
Axis Auto Finance Inc is a subprime auto lender that offers financing solutions to customers with poor credit. The company has a market cap of $67.61 million and a return on equity of 2.59%. Axis Auto Finance Inc operates in the United States and Canada. The company was founded in 2006 and is headquartered in Toronto, Canada.
– PT Danasupra Erapacific Tbk ($IDX:DEFI)
Danasupra Erapacific Tbk has a market cap of 999.97B as of 2022. The company is engaged in the exploration, production, and marketing of crude oil and natural gas. It also has refining and petrochemical operations. The company has operations in Indonesia, Malaysia, Singapore, Thailand, and Vietnam.
Summary
Consumer Portfolio Services Inc. released their second quarter earnings results on August 3rd, showing a 22.3% decline in revenues and 44.9% decrease in net income compared to the same period in the previous year. Following the announcement, the company’s stock price moved down. Investors should consider this poor performance when analyzing the potential for future returns. It is important to evaluate both short-term and long-term trends within the company when making an investment decision.
Additionally, investors should look at factors such as competitive advantages, management team experience, financial position, and any potential risks associated with investing in the company.
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