📊 CPSS Key Takeaways
Is Consumer Portfolio Services, Inc.. (CPSS) a Good Investment?
CPSS generates strong free cash flow ($83M) with conservative leverage (0.08x D/E), but fundamental growth is anemic (0.6% net income YoY) and returns on assets are severely depressed (0.1% ROA, 1.8% ROE), suggesting the company is extracting minimal shareholder value from its substantial asset base. The critical interest coverage ratio of 0.1x indicates significant debt servicing stress despite low reported long-term debt, signaling either hidden liabilities or structural profitability challenges.
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.
Consumer Portfolio Services, Inc.. Key Strengths (CPSS)
- Robust free cash flow generation at $83M with 73.9% FCF margin, providing financial flexibility
- Conservative capital structure with 0.08x debt-to-equity ratio and minimal capex requirements ($796K)
- Operating cash flow of $83.8M exceeds net income, indicating quality earnings and operational cash generation
- 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 low return on assets (0.1%) and return on equity (1.8%) indicate severe asset utilization inefficiency and shareholder value destruction
- Near-zero earnings growth (0.6% YoY net income) combined with minimal revenue growth (2.8%) suggests mature/declining business trajectory
- Interest coverage of 0.1x is severely depressed, indicating substantial debt service burden relative to operating income despite reported low long-term debt levels
- 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
- Return on Assets and Return on Equity trend - must show material improvement to justify holding
- Net income growth acceleration - 0.6% YoY is unsustainable and concerning
- Interest expense and total debt levels - to reconcile the extremely low interest coverage ratio
- 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 73.9% 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 |
|---|---|---|---|
| Q1 2026 | $106.9M | $4.7M | $0.19 |
| 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 |
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 Grade of C from Claude (B) and ChatGPT (C) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPSS's key strengths?
Claude: Robust free cash flow generation at $83M with 73.9% FCF margin, providing financial flexibility. Conservative capital structure with 0.08x debt-to-equity ratio and minimal capex requirements ($796K). 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 low return on assets (0.1%) and return on equity (1.8%) indicate severe asset utilization inefficiency and shareholder value destruction. Near-zero earnings growth (0.6% YoY net income) combined with minimal revenue growth (2.8%) suggests mature/declining business trajectory. 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 $112.3M.
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 $0.24.
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 grade reflects both perspectives for balanced insights.
What is CPSS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Consumer Portfolio Services, Inc.. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CPSS stock overvalued or undervalued?
Valuation metrics for CPSS: ROE of 1.8% (sector avg: 12%), net margin of 4.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is CPSS's AI grade for 2026?
Our dual AI analysis gives Consumer Portfolio Services, Inc.. a combined C grade 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 $83.8M, with capital expenditures of $796.0K. FCF margin is 73.9%.
How does CPSS compare to other Finance stocks?
Vs Finance sector averages: Net margin 4.9% (avg: 25%), ROE 1.8% (avg: 12%), current ratio N/A (avg: 1.2).