Consumer Portfolio Services Inc. Common Stock (CPSS)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses selling below what they are worth, and CPSS is a classic asset play: FairStock calculates P/B of 0.62 and a Graham Number of $17.40 at the 2026-10-13 close of $9.16, implying a 47.36% margin of safety. The P/E is 10.07, PEG 0.56, and trailing FCF of $349.5M gives a 177.0% FCF yield. But cheapness is not quality. This is a specialty auto lender to borrowers with limited or damaged credit, so credit cycles matter more than brand or switching costs. FairStock's ROE is 6.94% and ROCE only 0.53%, while D/E of 12.61 and an Altman Z-score of 0.14 signal high leverage and fragility. Growth is mixed: in the fiscal year ended 2024-12-31, revenue was $393.5M, net income $19.2M, and diluted EPS $0.79; in the fiscal year ended 2025-12-31, revenue rose to $434.5M, but net income was $19.3M and diluted EPS $0.80. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $121.4M, net income $6.2M, and diluted EPS $0.27, versus fiscal Q2 2025 revenue of $109.8M, net income of $4.8M, and diluted EPS of $0.20. Piotroski 6/9 is decent, but the balance sheet demands respect. If credit holds and funding remains available, book value may be worth more than the market says. If losses rise, leverage can erode that book value quickly. I would want a larger discount for the cyclical and financing risks, though the asset-play math is real.

In plain English: Consumer Portfolio Services buys and services car loans, mostly for people with limited or troubled credit histories. The business is profitable but not especially strong: it uses a lot of debt, earns modest returns, and profits have been uneven. At $9.16 on 2026-10-13, the stock trades below its accounting book value and at about 10 times earnings, so the price looks cheap versus its reported numbers, though the risks are real.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer