Why EZCORP is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pawn shop operator EZCORP (NASDAQ: EZPW  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at EZCORP, and see what CAPS investors are saying about the stock right now.

EZCORP facts

 

 

Headquarters (founded)

Austin, Texas (1989)

Market Cap

$1.1 billion

Industry

Consumer finance

Trailing-12-Month Revenue

$992.5 million

Management

CEO Paul Rothamel (since 2010)

CFO Mark Kuchenrither (since 2012)

Return on Equity (average, past 3 years)

20.3%

Cash/Debt

$48.5 million / $221.5 million

Competitors

Cash America International (NYSE: CSH  )

First Cash Financial Services (NASDAQ: FCFS  )

Xponential

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 2,016 members who have rated EZCORP believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, ValueSpreadsheet, listed several of EZCORP's positives:

Intrinsic value estimate between $35 and $50

Has seen its net profit margin and book value increase steadily over the past years

ROE consistently above 15

A very respectable current ratio

PEG ratio way below 1

In addition, the pawn shop business does great in tumultuous times and is becoming more and more accepted, partly due to the numerous TV shows. I'm convinced!

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a sure-fire way to secure your financial future. Of course, despite a strong four-star rating, EZCORP may not be your top choice.

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