CPSS Stock Fair Value – CONSUMER PORTFOLIO SERVICES Reports Q2 FY2023 Earnings Results on June 30, 2023
August 17, 2023
🌥️Earnings Overview
On June 30, 2023, CONSUMER PORTFOLIO SERVICES ($NASDAQ:CPSS) announced its Q2 FY2023 earnings results which closed on the same date. Total revenue for the period, compared to the same time frame in FY2022, reported a 22.3% decrease, amounting to USD 49.1 million. Net income experienced a year-over-year drop of 44.9%, coming to a total of USD 14.0 million.
Stock Price
On Thursday, June 30th, 2023, CONSUMER PORTFOLIO SERVICES reported their earnings results for the second quarter of the financial year 2023. The stock opened at 10.8 dollars and closed at 11.4 dollars, down 3.2% from the previous closing price of 11.8 dollars. The low closing price is attributed to the stock market’s overall bearish sentiment during the quarter. These results represent an impressive improvement compared to the previous period, and further strengthen the company’s position in the market.
This reflects a healthy balance sheet with high liquidity ratio and strong cash flows. Overall, CONSUMER PORTFOLIO SERVICES reported positive earnings results and a strong balance sheet for the second quarter of 2023. This is a testament to the company’s commitment to keeping shareholders informed and delivering quality results over time. 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 Stock Fair Value
GoodWhale has conducted an in-depth analysis of the fundamentals of CONSUMER PORTFOLIO SERVICES. After careful consideration, our proprietary Valuation Line has calculated the intrinsic value of the company’s shares to be around $8.5. Currently, CONSUMER PORTFOLIO SERVICES stock is being traded at $11.4, which is 33.8% overvalued when compared to its intrinsic value. This indicates that now is not the best time to invest in the company. More…
Peers
The company has been in operation for over 20 years and has a strong presence in the United States. The company has a strong competition with Credit Acceptance Corp, Axis Auto Finance Inc, PT Danasupra Erapacific Tbk.
– Credit Acceptance Corp ($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. reported a 22.3% decline in total revenue for the second quarter of its fiscal year 2023, compared to the same period of the previous year. Net income decreased 44.9% year-over-year to reach 14.0 million USD. The stock reacted negatively to the news and dropped in value on the same day as the earnings report.
Investors should be aware of the financial performance and consider diversifying their portfolios if needed. It is also recommended to further research the company and conduct an analysis of its financial statements in order to make an informed decision about its investment prospects.
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