Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pawn shop operator EZCORP
With that in mind, let's take a closer look at EZCORP's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Austin, Texas (1989)|
|Market Cap||$1.3 billion|
|Trailing-12-Month Revenue||$733 million|
CEO Paul Rothamel (since February 2010)
CFO Stephen Stamp (since November 2010)
|Return on Capital (Average, Past 3 Years)||18.2%|
|Cash/Debt||$25.85 million / $25 million|
Cash America International
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 549 members who have rated EZCORP believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars gspgundog and DarthMaul09, both of whom are ranked in the top 15% of our community.
Just last month, gspgundog tapped EZCORP as an easy choice: "Excellent play with high yield short term returns on cash for pawnshops. In this environment with people pawning things to make payment etc.. this is a great play."
Shares of EZCORP are up nearly 40% over the past three months alone, but many Fools think the fundamentals are worth paying up for. In fact, EZCORP's three-year average return on capital (18.2%) tops that of pawn shop counterparts Cash America (11.1%) and First Cash Financial
CAPS All-Star DarthMaul09 elaborates on the bull case:
This is like investing in Cash for Gold and legalized loan sharks. In a good way of course. Those who invest in [Goldman Sachs] should understand. This company is a play on a delayed recovery and a prolonged precious metals rise, which will increase demand for their services and grow their profits. They are primarily located in the south and have not yet been regulated out of existence.
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