NasdaqGM:CPSS

Stock Analysis Report

Executive Summary

Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States.

Rewards

Trading at 3.8% below its fair value

Earnings are forecast to grow 85.75% per year

Became profitable this year

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($78M)



Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has Consumer Portfolio Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPSS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CPSS

2.5%

US Consumer Finance

2.0%

US Market


1 Year Return

-6.2%

CPSS

20.2%

US Consumer Finance

23.6%

US Market

Return vs Industry: CPSS underperformed the US Consumer Finance industry which returned 21.7% over the past year.

Return vs Market: CPSS underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CPSSIndustryMarket
7 Day0%2.5%2.0%
30 Day4.8%1.7%3.9%
90 Day3.3%7.7%12.0%
1 Year-6.2%-6.2%22.3%20.2%26.2%23.6%
3 Year-29.2%-29.2%44.6%37.7%53.2%43.3%
5 Year-42.6%-42.6%46.3%36.0%75.7%56.3%

Price Volatility Vs. Market

How volatile is Consumer Portfolio Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Consumer Portfolio Services undervalued compared to its fair value and its price relative to the market?

3.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPSS ($3.45) is trading below our estimate of fair value ($3.59)

Significantly Below Fair Value: CPSS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CPSS is good value based on its PE Ratio (7.2x) compared to the Consumer Finance industry average (8.3x).

PE vs Market: CPSS is good value based on its PE Ratio (7.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CPSS is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: CPSS is good value based on its PB Ratio (0.4x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is Consumer Portfolio Services forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

85.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPSS's forecast earnings growth (85.8% per year) is above the savings rate (1.7%).

Earnings vs Market: CPSS's earnings (85.8% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CPSS's revenue (12.8% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CPSS's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CPSS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Consumer Portfolio Services performed over the past 5 years?

-29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPSS has high quality earnings.

Growing Profit Margin: CPSS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CPSS's earnings have declined by -29.4% per year over the past 5 years.

Accelerating Growth: CPSS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CPSS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Finance industry (21.8%).


Return on Equity

High ROE: CPSS's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Consumer Portfolio Services's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CPSS has a low level of unsold assets or inventory.

Debt Coverage by Assets: CPSS's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

Asset Level: CPSS's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if CPSS has a sufficient allowance for bad loans.

Low Risk Liabilities: CPSS reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CPSS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CPSS has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CPSS has an appropriate level of bad loans.


Next Steps

Dividend

What is Consumer Portfolio Services's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CPSS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CPSS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CPSS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPSS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPSS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Consumer Portfolio Services's salary, the management and board of directors tenure and is there insider trading?

12.8yrs

Average management tenure


CEO

Charles Bradley (59yo)

28yrs

Tenure

US$4,022,600

Compensation

Mr. Charles E. Bradley, Jr. has been the President and a Director of Consumer Portfolio Services, Inc. (the “Company”) since its formation in March 1991, Chairman of the Board of Directors since July 2001  ...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD4.02M) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Charles's compensation has been consistent with company performance over the past year.


Management Age and Tenure

12.8yrs

Average Tenure

55yo

Average Age

Experienced Management: CPSS's management team is seasoned and experienced (12.8 years average tenure).


Board Age and Tenure

13.4yrs

Average Tenure

60yo

Average Age

Experienced Board: CPSS's board of directors are seasoned and experienced ( 13.4 years average tenure).


Insider Trading

Insider Buying: CPSS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$136,80214 Nov 19
Gregory Washer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares40,000
Max PriceUS$3.43
SellUS$45,72212 Nov 19
Gregory Washer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,369
Max PriceUS$3.42

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Management Team

  • Charles Bradley (59yo)

    Chairman

    • Tenure: 28yrs
    • Compensation: US$4.02m
  • Curtis Powell (62yo)

    Senior Vice President of Program Development

    • Tenure: 18.6yrs
    • Compensation: US$747.60k
  • Mark Creatura (59yo)

    Senior VP

    • Compensation: US$354.15k
  • Chris Terry (51yo)

    Senior Vice President of Risk Management

    • Tenure: 17yrs
    • Compensation: US$536.72k
  • Jeffrey Fritz (59yo)

    Executive VP & CFO

    • Tenure: 13.8yrs
    • Compensation: US$961.70k
  • Danny Bharwani (51yo)

    Senior VP of Accounting & Controller

    • Tenure: 2.8yrs
  • Teri Robinson (56yo)

    Senior Vice President of Originations

    • Tenure: 12.8yrs
    • Compensation: US$788.00k
  • Michael Lavin (46yo)

    COO, Executive VP & Chief Legal Officer

    • Tenure: 0.9yrs
    • Compensation: US$1.02m
  • Laurie Straten (50yo)

    Senior Vice President of Servicing

    • Tenure: 6.4yrs
    • Compensation: US$768.00k
  • John Harton (54yo)

    Senior Vice President of Marketing

    • Tenure: 5.8yrs

Board Members

  • Charles Bradley (59yo)

    Chairman

    • Tenure: 28yrs
    • Compensation: US$4.02m
  • William Roberts (81yo)

    Independent Director

    • Tenure: 28.8yrs
    • Compensation: US$97.50k
  • Daniel Wood (60yo)

    Independent Director

    • Tenure: 18.5yrs
    • Compensation: US$130.50k
  • Brian Rayhill (56yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$130.00k
  • Gregory Washer (57yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$132.00k
  • Chris Adams (70yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$136.00k
  • Louis Grasso (73yo)

    Director

    • Tenure: 0.3yrs

Company Information

Consumer Portfolio Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Consumer Portfolio Services, Inc.
  • Ticker: CPSS
  • Exchange: NasdaqGM
  • Founded: 1991
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$78.182m
  • Shares outstanding: 22.53m
  • Website: https://www.consumerportfolio.com

Number of Employees


Location

  • Consumer Portfolio Services, Inc.
  • 19500 Jamboree Road
  • Suite 500
  • Irvine
  • California
  • 92612
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPSSNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 1992
FC8DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1992

Biography

Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It purchases and services 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, low incomes, or past credit problems. It serves as an alternative source of financing for dealers, facilitating sales to customers who might not be 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; and offers financing directly to sub-prime consumers to facilitate their purchase of a new or used automobile, light truck, or passenger van. Consumer Portfolio Services, Inc. services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was founded in 1991 and is headquartered in Irvine, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 23:35
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.