Previous Close | $10.01 |
AI Value | $180.40 |
Upside potential | +1,702% |
Consumer Portfolio Services, Inc. (CPSS) is a specialty finance company that provides indirect automobile financing to individuals with past credit challenges, low incomes, or limited credit histories. The company operates primarily in the U.S. subprime auto loan market, purchasing retail installment contracts from franchised and independent auto dealers. CPSS has established a niche position by focusing on higher-risk borrowers, offering dealers flexible underwriting and competitive pricing. Its competitive advantage lies in its data-driven risk assessment models, strong dealer relationships, and ability to securitize loans to manage liquidity. The company has maintained a disciplined underwriting approach, balancing growth with risk management in a cyclical industry.
Proprietary credit scoring models and AI-driven collection strategies. The company has invested in digital underwriting platforms to streamline dealer submissions.
CPSS presents a high-risk/high-reward opportunity for investors comfortable with cyclical financials. The stock trades at distressed valuations due to recession fears, but the company's 30+ year operating history and improved underwriting since 2017 provide downside protection. Key monitoring points include quarterly net charge-offs (currently ~5%) and securitization execution. Suitable only for risk-tolerant portfolios with a 2-3 year horizon.
SEC 10-K/Q filings, Auto Finance News, company investor presentations, Federal Reserve subprime auto loan data
Historical valuation data is not available at this time.