EZCORP Inc (EZPW) stock analysis

P/E below its 5-year median

Ezcorp's P/E of 13.3 is below its own 5-year median of 15.1.

P/E below the industry

Ezcorp's P/E of 13.3 is below the Miscellaneous Retail median of 17.4.

EV/EBITDA below its 5-year median

Ezcorp's EV/EBITDA of 6.9 is below its 5-year median of 7.8.

P/B below the industry

Ezcorp's price-to-book of 1.42 is below the Miscellaneous Retail median of 2.02.

Trading below fair value

The share price of $27.55 is below our fair value estimate of $33.36.

Margin of safety under 20%

The price is 17.4% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 17.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 57.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 51.4% over the last twelve months, against a 5-year average of 80.7% a year.

Growing faster than the industry

Revenue grew 33.0% over the last twelve months; the Miscellaneous Retail median is 10.1%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 58.1% over the last twelve months, against 58.5% a year earlier.

Return on equity under 15%

Return on equity was 15.0% over the last twelve months and averaged 9.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 14.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Ezcorp's return on equity of 15.0% is above the Miscellaneous Retail median of -18.5%.

Earnings grew over 5 years

Net income grew 80.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.8% over the last twelve months, against a 5-year average of 7.0%.

Net margin above the industry

Ezcorp's net margin of 9.8% is above the Miscellaneous Retail median of 1.5%.

High debt

Debt is 43.6% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 35.8% of total debt.

Interest well covered

Operating income covers interest expense 7.1 times.

Short-term assets cover short-term debts

Current assets are 4.54 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.06; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Ezcorp has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.