EZCORP Story

EZPW -- USA Stock

USD 4.74 0.07 1.50%

Macroaxis Story

As many millenniums are trying to avoid financial services space, it makes sense to focus on EZCORP Inc a little further and try to understand its current market patterns. We will evaluate why we are still confident in anticipation of a recovery. Is the firm valuation justified? Here we go over EZCORP Inc perspective on valuation to give you a better outlook on taking a position in this stock.

Published over two months ago

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Should I rely on EZCORP management in December 2020?

EZCORP Inc currently holds 464.44 M in liabilities with Debt to Equity (D/E) ratio of 0.68, which is about average as compared to similar companies. The entity has a current ratio of 4.91, suggesting that it is liquid enough and is able to pay its financial obligations when due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. EZCORP has an asset utilization ratio of 88.51 percent. This indicates that the company is making $0.89 for each dollar of assets. An increasing asset utilization means that EZCORP Inc is more efficient with each dollar of assets it utilizes for everyday operations.

We determine the current worth of EZCORP Inc using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of EZCORP Inc based exclusively on its fundamental and basic technical indicators. By analyzing EZCORP's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of EZCORP's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of EZCORP. We calculate exposure to EZCORP's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to EZCORP's related companies.

EZCORP Inc Investment Alerts

EZCORP investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring EZCORP Inc performance across your portfolios.Please check all investment alerts for EZCORP

EZCORP Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare EZCORP value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across EZCORP competition to find correlations between indicators driving the intrinsic value of EZCORP.

How EZCORP utilizes its cash?

To perform a cash flow analysis of EZCORP, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash EZCORP is receiving and how much cash it distributes out in a given period. The EZCORP cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. EZCORP Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. EZCORP reported Net Cash Flow from Operations of 44.17 Million in 2020

A Deeper Perspective

The firm reported the previous year's revenue of 870.29 M. Net Loss for the year was (45.65 M) with profit before overhead, payroll, taxes, and interest of 494.45 M.

Margins Breakdown

EZCORP profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or EZCORP itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of EZCORP profit margins.

	Operating Margin	11.71
	EBITDA Margin	0.0791
	Gross Margin	0.53
	Profit Margin	0.002771

EZCORP Net Income Per Employee is decreasing over the last 6 years. The previous year's value of EZCORP Net Income Per Employee was -7,396. Moreover, EZCORP Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment.

Our take on today EZCORP climb

The semi deviation is down to 2.08 as of today. EZCORP Inc currently demonstrates below-verage downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of 0.0. However, we do advice investors to further question EZCORP Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on EZCORP Investment

While some companies under the credit services industry are still a bit expensive, EZCORP may offer a potential longer-term growth to sophisticated investors. To summarize, as of the 22nd of November 2020, our research shows that EZCORP is a rather somewhat reliable investment opportunity with a close to average odds of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. However, our current 30 days buy-or-sell advice on the venture is Strong Sell.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of EZCORP Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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