EZPW: Buy Now Before The Market Reprices This Undervalued Cash Machine
I rate EZCORP a Strong Buy due to its resilient, efficient business model, consistent profitability, and undervaluation within the pawn lending sector. EZCORP's strong financials, expanding margins, and robust liquidity highlight its ability to perform across economic cycles and support future growth. DCF valuation and peer comparisons reveal significant upside potential for the industry, with the current share price reflecting only conservative growth assumptions.
EZCorp Delivers Results, But The Market Hasn't Caught Up
EZCORP benefits from high inflation and tight credit, driving strong pawn loan growth and record earnings, yet still trades at just 10x earnings. Expansion into Latin America and luxury retail, plus a robust loyalty program, are fueling higher-margin growth and diversifying revenue streams. A recent debt refinancing leaves EZCORP with a near-zero net debt position, strong cash reserves, and flexibility for further expansion or buybacks.
EZCorp: A Decent Buying Opportunity Amid Macroeconomic Uncertainty
EZCORP benefits from a countercyclical pawn business model, thriving during economic stress and inflation as demand for short-term loans and pre-owned goods rises. The company is an indirect beneficiary of surging gold prices, which boosts loan values, inventory gains, and overall profitability due to its jewelry-heavy collateral base. EZPW trades at a low price-to-book ratio relative to its sustainable ROE, offering an attractive yield and potential upside, especially with digital initiatives underway.
EZCorp: Undervalued With Asymmetric Upside
EZCORP runs a resilient, niche pawn lending model with low credit risk, recurring retail revenue and benefits from consumer liquidity needs during financial stress. Despite strong fundamentals and steady growth, EZPW trades at a significant discount to peers, presenting a contrarian value opportunity for long-term investors. Macro conditions like high inflation and tight credit favor EZPW's business, while risks center around regulatory changes and digital competition, not credit exposure.
EZCORP, Inc. (EZPW) Q2 2025 Earnings Call Transcript
EZCORP, Inc. (NASDAQ:EZPW ) Q2 2025 Earnings Conference Call April 29, 2025 9:00 AM ET Company Participants Sean Mansouri - Elevate IR Lachlan Given - Chief Executive Officer Tim Jugmans - Chief Financial Officer Conference Call Participants Brian McNamara - Canaccord Genuity Alex Howell - Stephens Inc. Craig Irwin - Roth Capital Partners Operator Good morning, ladies and gentlemen. Welcome to the EZCORP Second Quarter Fiscal 2025 Earnings Call.
Here's What Key Metrics Tell Us About Ezcorp (EZPW) Q2 Earnings
The headline numbers for Ezcorp (EZPW) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Ezcorp (EZPW) Surpasses Q2 Earnings Estimates
Ezcorp (EZPW) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.28 per share a year ago.
Gold's Rally Is A Boon For EZCorp
Tariffs and economic indicators suggest the US may face a recession, benefiting pawn shops like EZCORP due to increased demand for alternative financing. During economic downturns, pawn shops thrive as consumers avoid selling equity at a loss and turn to pawning valuable items, especially gold jewelry. EZCORP has a strong financial profile, with 68% of its inventory in jewelry, positioning it well to capitalize on rising gold prices and tighter credit markets.
EZCorp: A Stock That Is Likely To Benefit From A Recession
EZCorp's stock has surged 52.71% since my initial "hold" rating, outperforming the S&P 500, driven by strong financials and expansion in Latin America. The company benefits from economic slowdowns, as more consumers turn to pawn shops for instant cash, boosting loans and inventory sales. Despite a higher EV-to-EBITDA multiple, EZCorp remains attractive due to its solid financial performance and potential gains from economic uncertainty.
EZCORP: Load Up On This Tariff Winner
EZCORP is poised to benefit from Trump's tariffs, as its pawn brokerage business thrives when lower-income consumers face economic hardships. Tariffs act as regressive taxes, disproportionately affecting lower-income households, potentially driving more consumers to utilize EZCORP's pawn loan services. EZCORP's valuation remains attractive at 11.8x FWD P/E, with its business model being relatively immune to traditional credit risks.
Ezcorp (EZPW) Surges 5.4%: Is This an Indication of Further Gains?
Ezcorp (EZPW) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.
Is EZCORP (EZPW) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
