📊 CPSS Key Takeaways
Investment Thesis
Consumer Portfolio Services demonstrates solid operational cash generation with 66.4% FCF margin and healthy revenue growth of 2.8% YoY, but profitability metrics reveal concerning weakness with only 4.4% net margin and extremely weak 0.1x interest coverage ratio. The company's balance sheet shows elevated leverage relative to equity and minimal liquidity position that warrants careful monitoring.
CPSS Strengths
- Exceptional free cash flow margin of 66.4%, indicating highly efficient asset-light operations with minimal reinvestment needs
- Strong operating cash flow of $289M substantially exceeds net income, demonstrating quality earnings and cash conversion
- Conservative debt structure with 0.08x debt-to-equity ratio and modest long-term debt of $24.2M relative to $3.9B asset base
- Consistent revenue and earnings growth trending positively year-over-year (+2.8% revenue, +0.6% net income)
CPSS Risks
- Critically weak interest coverage ratio of 0.1x indicates severe debt service capacity concerns and potential covenant violations or refinancing risks
- Thin net margin of 4.4% and operating margin of 6.4% provide minimal buffer for operational disruptions or market downturns
- Extremely low cash position of $6.3M relative to $3.9B asset base and $3.5B liabilities creates liquidity vulnerability
- Severely compressed return on assets (0.5%) and ROE (6.2%) suggest inefficient capital deployment and suboptimal profitability
- Muted earnings growth (0.6% YoY) coupled with flat-to-declining profitability margins indicates mature, stagnant business trajectory
Key Metrics to Watch
- Interest coverage ratio trend - critical indicator of financial distress risk; target should be minimum 2.5x
- Cash and equivalents position - monitor for minimum liquidity cushion relative to near-term obligations
- Operating margin stability - track for deterioration that would amplify leverage concerns
- Free cash flow conversion and sustainability - confirm 66% FCF margin is maintainable and not anomalous
CPSS Financial Metrics
💡 AI Analyst Insight
The 66.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CPSS Profitability Ratios
CPSS vs Finance Sector
How CONSUMER PORTFOLIO SERVICES, INC. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CPSS Balance Sheet & Liquidity
CPSS 5-Year Financial Trend
5-Year Trend Summary: CONSUMER PORTFOLIO SERVICES, INC.'s revenue has grown significantly by 26% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.80 reflects profitable operations.
CPSS Growth Metrics (YoY)
CPSS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $100.6M | $4.8M | $0.20 |
| Q2 2025 | $95.9M | $4.7M | $0.19 |
| Q1 2025 | $91.7M | $4.6M | $0.19 |
| Q3 2024 | $92.1M | $4.8M | $0.20 |
| Q2 2024 | $84.9M | $4.7M | $0.19 |
| Q1 2024 | $83.1M | $4.6M | $0.19 |
| Q3 2023 | $90.3M | $10.4M | $0.41 |
| Q2 2023 | $82.0M | $14.0M | $0.55 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CPSS Capital Allocation
CPSS SEC Filings
Access official SEC EDGAR filings for CONSUMER PORTFOLIO SERVICES, INC. (CIK: 0000889609)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CPSS
What is the AI rating for CPSS?
CONSUMER PORTFOLIO SERVICES, INC. (CPSS) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPSS's key strengths?
Exceptional free cash flow margin of 66.4%, indicating highly efficient asset-light operations with minimal reinvestment needs. Strong operating cash flow of $289M substantially exceeds net income, demonstrating quality earnings and cash conversion.
What are the risks of investing in CPSS?
Critically weak interest coverage ratio of 0.1x indicates severe debt service capacity concerns and potential covenant violations or refinancing risks. Thin net margin of 4.4% and operating margin of 6.4% provide minimal buffer for operational disruptions or market downturns.
What is CPSS's revenue and growth?
CONSUMER PORTFOLIO SERVICES, INC. reported revenue of $434.5M.
Does CPSS pay dividends?
CONSUMER PORTFOLIO SERVICES, INC. does not currently pay dividends.
Where can I find CPSS SEC filings?
Official SEC filings for CONSUMER PORTFOLIO SERVICES, INC. (CIK: 0000889609) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CPSS's EPS?
CONSUMER PORTFOLIO SERVICES, INC. has a diluted EPS of $0.80.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.