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Why EZCORP Is Ready to Rebound

By Brian D. Pacampara, CFA - Apr 16, 2013 at 6:17PM

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Market-trouncing returns could be written in this 5-Star.

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 (EZPW -1.24%) 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

$975.6 million

Industry

Consumer finance

Trailing-12-Month Revenue

$1.0 billion

Management

CEO Paul Rothamel (since 2010)

CFO Mark Kuchenrither (since 2012)

Return on Equity (average, past 3 years)

19.5%

Cash/Debt

$46.7 million/$236.8 million

Competitors

Cash America International 

First Cash Financial Services 

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

On CAPS, 97% of the 669 members who have rated EZCORP believe the stock will outperform the S&P 500 going forward.

Earlier this year, one of those Fools, ValueSpreadsheet, succinctly summed up the EZCORP bull case for our community:

Intrinsic value estimate between [$35 and $50 per share].

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

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!

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Stocks Mentioned

EZCORP, Inc. Stock Quote
EZCORP, Inc.
EZPW
$7.18 (-1.24%) $0.09

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