CPSS Intrinsic Stock Value – CONSUMER PORTFOLIO SERVICES Reports Financial Results for Q2 Fiscal Year 2023
August 25, 2023
🌥️Earnings Overview
Consumer Portfolio Services ($NASDAQ:CPSS) reported financial results for the fiscal year 2023’s second quarter, which ended June 30 2023, on August 3 2023. Total revenue for this period came to USD 49.1 million, a 22.3% decline from the same quarter of the previous year. The company’s net income was USD 14.0 million, representing a 44.9% drop from the same quarter of the prior year.
Price History
The stock opened at $10.8 and closed at $11.4, representing a 3.2% decrease from its last closing price of $11.8. This strong financial performance is reflective of the company’s commitment to providing quality services for financial institutions and consumers alike. Overall, CONSUMER PORTFOLIO SERVICES is continuing to show strong performance and is well-positioned to continue growing its portfolio and increasing its revenue and profit margins in the coming quarters. The company is well-positioned to continue providing quality services that enable financial institutions and consumers to manage their finances better. 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 – CPSS Intrinsic Stock Value
At GoodWhale, we analyze CONSUMER PORTFOLIO SERVICES’s financials to provide our clients with the best advice when it comes to investing. After analyzing the company’s past performance and future prospects, our proprietary Valuation Line concludes that the intrinsic value of CONSUMER PORTFOLIO SERVICES’s share is around $8.6. However, the stock is currently trading at $11.4, overvalued by 33.2%. Therefore, we advise our clients to be cautious and to exercise caution when it comes to investing in the stock. More…
Peers
The company has been in operation for over 20 years and has a strong presence in the United States. The company has a strong competition with Credit Acceptance Corp, Axis Auto Finance Inc, PT Danasupra Erapacific Tbk.
– Credit Acceptance Corp ($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
Investors reacted negatively to the second quarter financial results reported by Consumer Portfolio Services (CPS) for the fiscal year 2023, ending on June 30 2023. Revenue decreased 22.3% from the same quarter of the previous year, resulting in total revenue of USD 49.1 million. The company’s net income plummeted 44.9% to USD 14.0 million from the same quarter of the prior year.
This news resulted in a drop in the stock price. Therefore, investors are advised to carefully consider the risks associated with investing in CPS due to its volatility and potential for future losses given its recent performance.
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