📊 CPSS Key Takeaways
Is Consumer Portfolio Services, Inc.. (CPSS) a Good Investment?
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.
Consumer Portfolio Services remains profitable and is generating positive earnings, but growth is weak and returns are modest relative to the size of its balance sheet. The company’s thin margins, very low ROA, limited cash cushion, and extremely weak interest coverage suggest fragile earnings quality and elevated financial risk despite positive operating cash flow.
Why Buy Consumer Portfolio Services, Inc.. Stock? CPSS 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
- 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)
- Revenue, net income, and diluted EPS are still growing year over year, indicating the business remains operationally profitable
- Operating cash flow is strong relative to reported revenue, supporting ongoing funding capacity and liquidity generation
- Reported long-term debt is low relative to equity, which limits traditional balance-sheet leverage at the parent level
CPSS Stock Risks: Consumer Portfolio Services, Inc.. Investment 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
- Profitability is thin, with only 6.4% operating margin and 4.4% net margin, leaving limited room for credit or funding stress
- Returns are weak for a finance company, with ROE of 6.2% and ROA of 0.5%, indicating limited efficiency in converting assets into profit
- Cash on hand is very low versus total liabilities, and interest coverage of 0.1x points to significant servicing or funding pressure
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
- Net charge-offs, delinquencies, and allowance for credit losses
- Interest coverage, funding costs, and sustained net income margin improvement
Consumer Portfolio Services, Inc.. (CPSS) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
CPSS vs Finance Sector: How Consumer Portfolio Services, Inc.. Compares
How Consumer Portfolio Services, Inc.. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Consumer Portfolio Services, Inc.. Stock Overvalued? CPSS Valuation Analysis 2026
Based on fundamental analysis, Consumer Portfolio Services, Inc.. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Consumer Portfolio Services, Inc.. Balance Sheet: CPSS Debt, Cash & Liquidity
CPSS Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
CPSS Quarterly Earnings & 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.
Consumer Portfolio Services, Inc.. Dividends, Buybacks & Capital Allocation
CPSS SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of SELL from Claude (HOLD) and ChatGPT (SELL) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPSS's key strengths?
Claude: 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. ChatGPT: Revenue, net income, and diluted EPS are still growing year over year, indicating the business remains operationally profitable. Operating cash flow is strong relative to reported revenue, supporting ongoing funding capacity and liquidity generation.
What are the risks of investing in CPSS?
Claude: 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. ChatGPT: Profitability is thin, with only 6.4% operating margin and 4.4% net margin, leaving limited room for credit or funding stress. Returns are weak for a finance company, with ROE of 6.2% and ROA of 0.5%, indicating limited efficiency in converting assets into profit.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CPSS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Consumer Portfolio Services, Inc.. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CPSS stock overvalued or undervalued?
Valuation metrics for CPSS: ROE of 6.2% (sector avg: 12%), net margin of 4.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy CPSS stock in 2026?
Our dual AI analysis gives Consumer Portfolio Services, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CPSS's free cash flow?
Consumer Portfolio Services, Inc..'s operating cash flow is $289.0M, with capital expenditures of $709.0K. FCF margin is 66.4%.
How does CPSS compare to other Finance stocks?
Vs Finance sector averages: Net margin 4.4% (avg: 25%), ROE 6.2% (avg: 12%), current ratio N/A (avg: 1.2).