Consumer Portfolio Services Inc (CPSS) Stock AnalysisCPSSStock AnalysisConsumer Portfolio Services Inc

Consumer Portfolio Services, Inc. is a specialty finance company. Its business is to provide purchase and service retail automobile contracts originated primarily by franchised automobile dealers and, to a lesser extent, by select independent dealers in the United States in the sale of new and used automobiles, light trucks, and passenger vans. Through its automobile contract purchases, it provides indirect financing to the customers of dealers. It serves as an alternative source of financing for dealers, facilitating sales to customers from traditional sources, such as commercial banks, credit unions, and the finance companies affiliated with automobile manufacturers. It also originates vehicle purchase money loans by lending directly to consumers. It offers over eight different financing programs and prices each program according to relative credit risk. Its financing programs include First Time Buyer, Mercury / Delta, Standard, Alpha, Alpha Plus, Super Alpha, Preferred, and Meta. It operates in the Financials sector (FINANCE SERVICES industry).

CPSS is a good buy right now due to its current price of $9.42, a strong revenue growth of 10% year-over-year, and a forward P/E ratio of 5.21, which suggests it is undervalued compared to its earnings potential. The main risk is its high debt-to-equity ratio of 1255.77%, which indicates significant leverage.

4 analysts cover CPSS: 1 rate it Buy, 3 Hold and 0 Sell.