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CURO Group Holdings Corp.OTCPK:CURO.Q Stock Report

Market Cap US$1.7m
Share Price
n/a
US$24.59
n/aintrinsic discount
1Y-97.4%
7D-22.6%
1D
Portfolio Value
​
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CURO Group Holdings Corp.

OTCPK:CURO.Q Stock Report

Market Cap: US$1.7m

This company listing is no longer active

This company may still be operating, however this listing is no longer active. Find out why through their latest events.

CURO Group Holdings (CURO.Q) Stock Overview

Provides consumer finance products in the United States and Canada. More details

CURO.Q fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance0/6
Financial Health0/6
Dividends0/6

Rewards

Trading at 99.8% below our estimate of its fair value

Risk Analysis

Debt is not well covered by operating cash flow

Negative shareholders equity

Earnings have declined by 61.2% per year over past 5 years

Does not have a meaningful market cap ($2M)

+ 1 more risk

CURO.Q Community Fair Values

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CURO Group Holdings Corp. Competitors

Price History & Performance

Summary of share price highs, lows and changes for CURO Group Holdings
Historical stock prices
Current Share PriceUS$0.041
52 Week HighUS$1.75
52 Week LowUS$0.022
Beta1.88
1 Month Change-25.45%
3 Month Change-56.84%
1 Year Change-97.44%
3 Year Change-99.75%
5 Year Change-99.61%
Change since IPO-99.71%

Recent News & Updates

Recent updates

Seeking Alpha • Feb 23

Curo Group Non-GAAP EPS of -$0.80 misses by $0.67, revenue of $217.19M misses by $6.74M

Curo Group press release (NYSE:CURO): Q4 Non-GAAP EPS of -$0.80 misses by $0.67. Revenue of $217.19M (-3.2% Y/Y) misses by $6.74M. Gross Loans Receivables increased 34.8% year-over-year to $2.1 billion Goodwill impairment of $107.8 million in U.S. Direct Lending and $37.4 million in Canada POS Lending
Seeking Alpha • Dec 28

CURO Group Holdings: The Downside May Not Be Complete

Summary Inflation and expensive lending will likely weigh on demand for consumer credit, of which CURO Group Holdings Corp. is a provider. With recession fears joining the team, even with an improved portfolio of products with lower failure rates, CURO likely won't have an easy time tackling it. The resulting headwinds, which have caused the stock to plummet so far, are on track to linger, so investors may want to consider a Sell rating. Elevated Inflation and Higher Borrowing Costs Weigh on Consumer Finance and its Providers, Including CURO Group Holdings Corp. Increased inflation combined with higher borrowing costs due to the Fed's tight interest rate policy weighs on consumer non-staples stocks and stocks of credit lenders that provide the funds to afford non-essential goods and services. Shares of these stocks have fallen sharply year-to-date and are likely to decline further under the same unfavorable conditions. Among the underperforming stocks of consumer finance providers, investors should consider softening their positions in CURO Group Holdings Corp. (CURO). Largely due to the same macroeconomic factors that have been unfavorable so far, this US-based credit services company is poised to see further deterioration in relevant financial and operating data, which could put severe downward pressure on the shares. Seeking Alpha The shares of CURO Group Holdings Corp. have plunged 79.2% this year, well worse than the 18.63% drop in the SPDR S&P 500 Trust ETF (SPY), which is used as the benchmark index for the U.S. stock market. The 14-day CURO Group Holdings Relative Strength Index of 47.46 suggests that the oversold levels are still a long way from current levels, despite the stock price falling sharply year-to-date. This suggests shares will have ample room for further declines if elevated inflation and higher borrowing costs continue to weigh on consumer finance. And current conditions are such that this scenario is likely to last for months heading into 2023. The Economic Situation and its Impact on Credit Spending and its Financing The fall in annual inflation to 7.1% in November from 7.7% in October represents a continuation of the improvement that started last July and shows that the central bank's policy of tightening interest rates is working, even if this inflation was not demand-driven. This is a good result for the economy aiming for price stability and healthy employment levels, but with the monetary tightening the US Federal Reserve (Fed) is not done yet as additional rate hikes need to be implemented to bring inflation down to the target level of 2%. In addition to the recessionary signals already being sent to consumers (consumption accounts for about 70% of the US GDP), more are set to come from the Fed soon. These will continue to influence consumers' perceptions of the current state of the economy (December's sub-reading has been revised downwards to 59.4 from a preliminary reading of 60.2) and their propensity to consume, affecting spending on certain non-essential products usually bought on credit. That impact on consumption is already being felt, as US retail sales fell 0.6% in November compared to October, marking the sharpest fall since the start of the year. The categories with the largest declines in sales were goods typically bought on credit, such as furniture, vehicles, and electronics. Since the November data also included Black Friday on November 25 and Cyber Monday, which, as usual, offered heavy discounts, they provided strong evidence of a slowdown in consumer spending due to higher inflation combined with recession signals from higher interest rates. CURO Group Holdings Corp. in the Credit Services Industry CURO Group Holdings Corp. headquartered in Wichita, Kansas, has been a consumer finance provider in North America for over 25 years. The company says it has developed a range of ease accessible financial services while reducing the risk. CURO Group Holdings Corp. offers unsecured and secured installment loans, perpetual and one-time payment loans, and complementary financial products. The latter includes check-to-cash, reloadable prepaid debit cards, and demand deposit accounts. The offering also includes credit protection insurance, installment sales and money transfer services. Third Quarter 2023 Financial Results: Elevated Inflation, US Fed's Hawkish Stance, and Recession Fears are the Bogey Team for CURO Macroeconomic headwinds had a significant impact on sales and earnings in the third quarter of 2022. CURO Group Holdings Corp. reported total revenue of $214.12 million, down 29.7% sequentially, and missed analysts' average forecast by $8.8 million. Management attributed the lower sales to higher borrowing costs due to hawkish central bank stances and the weaker Canadian dollar against the US dollar. The chart below, which shows the development of CURO Group's 12-month total revenues, hints at a loss in sales momentum from the second half of 2022, especially in connection with the strengthening of the recession signals from the North American central banks. Seeking Alpha With borrowing costs rising to fight entrenched inflation and the impact of rate hikes on consumption being felt even several months after the Fed's decision, I think risks to CURO's revenues will certainly remain on the downside for several quarters to come. Year over year, total revenue increased by 2.3% in the third quarter of 2022. However, aside from strong growth in Canada POS Lending and Canada Direct Lending products, revenue benefited from inorganic catalysts following the July 2022 acquisition of First Heritage Credit, LLC and the December 2021 acquisition of Heights Finance. Both are providers of premium consumer credit and standard opt-in insurance products. First Heritage Credit was acquired for $140 million payable in cash. While Heights Finance was bought for $360 million, of which 93% was in cash and the rest in stock. Not to mention, US revenues declined significantly during the quarter due to the sale of the US direct lending business. The company also cited "credit trends normalizing to pre-pandemic levels" as another factor that could explain the decline in sales. However, it should be noted that when compared to revenue of $297.26 million for the quarter that ended September 30, 2019 (this was the last Q3 before the COVID-19 outbreak in mid-March 2020), the loss of momentum seems to have been caused to a sheer drop in sales rather than a normalization of credit trends. About the bottom line, the company reported a pro forma net loss of $11.9 million, or a pro forma net loss of $0.29 per share in the third quarter of 2022, missing the average estimate of analysts by $0.33. Also, the Q3 2022 bottom line result was a deterioration compared to the pro forma net income of $6.4 million or pro forma net income of $0.15 per share in the same quarter of 2021. In addition to the decline in sales, the loss was explained by higher costs of borrowing, with which the company financed the acquisition of the above companies and the continuation of the business. Lower demand for consumer credit due to ongoing risks of inflation and recession combined with rising borrowing costs is expected to continue to impact CURO's top and bottom lines in the coming quarters and potentially create strong headwinds for the share price. Inorganic Catalysts Make the Loan Portfolio More Resilient, But That May Not Be Enough Gross loan receivables rose 115% year over year to $1.01 billion in the third quarter of 2022, the company reported. However, the result was impacted by the acquisitions of Heights Finance and First Heritage.
Seeking Alpha • Nov 15

CURO Group names Doug Clark as new CEO

CURO Group Holdings (NYSE:CURO) announced Tuesday the appointment of Doug Clark as its new chief executive officer, effective immediately. Clark succeeds Don Gayhardt, who has decided to leave the Company to pursue other opportunities. Most recently, Clark served as President of CURO’s North American direct lending business and was previously CEO of Heights Finance before it was acquired by CURO in December 2021. Earlier: Curo Group Non-GAAP EPS of -$0.29 misses by $0.33, revenue of $214.12M misses by $8.76M
Seeking Alpha • Nov 02

Curo Group Non-GAAP EPS of -$0.29 misses by $0.33, revenue of $214.12M misses by $8.76M

Curo Group press release (NYSE:CURO): Q3 Non-GAAP EPS of -$0.29 misses by $0.33. Revenue of $214.12M (+2.3% Y/Y) misses by $8.76M.
Seeking Alpha • Oct 04

CURO Group Holdings subsidiary Flexiti upsizes C$535M revolving warehouse credit facility

CURO Group Holdings (NYSE:CURO) wholly owned subsidiary Flexiti Financial has upsized its revolving warehouse credit facility from C$500M to C$535M and extended its maturity.  Combined with its pre-existing C$527M securitization facility, Flexiti has access to over C$1B in capital to fund its rapidly growing consumer receivables portfolio and help meet the increasing demand for loans from Canadian consumers. “In June of this year, Flexiti reached $2 billion in lifetime loan originations. We have seen continuous, significant growth in our originations. This renewed warehouse facility also broadens our banking relationships, lowers our cost of funds and continues to demonstrate the investment community’s confidence in our business model and growth opportunities.” said Peter Kalen, founder and CEO of Flexiti.
Seeking Alpha • Aug 08

Curo Group Non-GAAP EPS of -$0.28 beats by $0.02, revenue of $304.4M beats by $41.75M

Curo Group press release (NYSE:CURO): Q2 Non-GAAP EPS of -$0.28 beats by $0.02. Revenue of $304.4M (+62.2% Y/Y) beats by $41.75M.
Seeking Alpha • Jul 11

CURO closes the sale of legacy U.S. direct lending business

CURO Group (NYSE:CURO) completed the divestiture of its Legacy U.S. Direct Lending business to Community Choice Financial (CCFI), a consumer financial services company based in Dublin, Ohio, for total cash consideration of $345M. The consideration includes $310 million in cash paid at closing and $35 million payable over the next 12 months. The company also announced that it expects to complete the previously announced acquisition of First Heritage Credit by July 15, 2022 on terms consistent with the May 19, 2022 transaction announcement. “We are pleased to announce the closing of the sale of our legacy US Direct Lending business to Community Choice. We thank the more than 1,700 employees of these operations for their work for CURO and we are confident that Community Choice will be an excellent owner and operator of these businesses.” said Don Gayhardt, Chief Executive Officer.
Analysis Article • May 07

CURO Group Holdings (NYSE:CURO) Has Re-Affirmed Its Dividend Of US$0.11

CURO Group Holdings Corp. ( NYSE:CURO ) will pay a dividend of US$0.11 on the 23rd of May. The dividend yield will be...
Analysis Article • Jan 05

News Flash: Analysts Just Made A Massive Upgrade To Their CURO Group Holdings Corp. (NYSE:CURO) Forecasts

CURO Group Holdings Corp. ( NYSE:CURO ) shareholders will have a reason to smile today, with the analysts making...

Shareholder Returns

CURO.QUS Consumer FinanceUS Market
7D-22.6%4.9%1.4%
1Y-97.4%9.4%25.7%

Return vs Industry: CURO.Q underperformed the US Consumer Finance industry which returned 31.7% over the past year.

Return vs Market: CURO.Q underperformed the US Market which returned 19.4% over the past year.

Price Volatility

Is CURO.Q's price volatile compared to industry and market?
CURO.Q volatility
CURO.Q Average Weekly Movement38.4%
Consumer Finance Industry Average Movement6.6%
Market Average Movement7.2%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.1%

Stable Share Price: CURO.Q's share price has been volatile over the past 3 months.

Volatility Over Time: CURO.Q's weekly volatility has increased from 29% to 38% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19974,000Doug Clarkwww.curo.com

CURO Group Holdings Corp., together with its subsidiaries, provides consumer finance products in the United States and Canada. The company offers secured and unsecured installment loans, revolving line of credit, and single-pay loans; and credit protection insurance, check cashing, money transfer, foreign currency exchange, and other ancillary financial products and services, as well as reloadable prepaid debit cards and demand deposit accounts. The company also provides loans through online.

CURO Group Holdings Corp. Fundamentals Summary

How do CURO Group Holdings's earnings and revenue compare to its market cap?
CURO.Q fundamental statistics
Market capUS$1.69m
Earnings (TTM)-US$186.08m
Revenue (TTM)US$244.97m
0.0x
P/S Ratio
0.0x
P/E Ratio

Is CURO.Q overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
CURO.Q income statement (TTM)
RevenueUS$244.97m
Cost of RevenueUS$45.45m
Gross ProfitUS$199.52m
Other ExpensesUS$385.59m
Earnings-US$186.08m

Last Reported Earnings

Dec 31, 2023

Next Earnings Date

n/a

Earnings per share (EPS)-4.51
Gross Margin81.45%
Net Profit Margin-75.96%
Debt/Equity Ratio-471.8%

How did CURO.Q perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/07/20 05:15
End of Day Share Price 2024/07/19 00:00
Earnings2023/12/31
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

CURO Group Holdings Corp. is covered by 5 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John RowanBrean Capital Historical (Janney Montgomery)
John HechtJefferies LLC
Vincent CainticStephens, Inc.