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Cashing in with Cash America International, Inc (CSH)

January 27, 2011 | About:
David Chulak

David Chulak

29 followers
Anyone that thinks Cash America International (CSH) is just another pawn shop and lending company…..think again. What many perceive to be an ugly business has been brought into the 21st century with class and professionalism. There are over 1000 locations throughout the US, Mexico, the United Kingdom, Canada and Australia which also includes internet services for loans. They have been in business for over 25 years.

It operates in various states and countries on various names including, Cash America Pawn, SuperPawn, Prenda Facil, Cashland and others. It has over 6000 employees and internal management training program for its employees allowing them to develop their skills including jewelry appraisal.

It’s returned approximately 13% in two months and just reported a share repurchasing program of 2.5 million shares. Its earnings are being reported today. Among the things I like about this stock:

In the 3rd quarter, current assets were reported at $ 613 million compared with total liabilities of $ 605 million.



EPS


2010


2009


2008


2007


2006


2005




3.74 est.


3.17


2.70


2.61


2.00


1.48


Earnings Growth (5 years): 21.68%

Revenue Growth (5 years): 19%

EBITDA Growth (5 years): 29.2%

Free Cash Flow Growth (5 years): 32.9%

ROE: 14.93

ROA: 9.92

ROIC: 10.35

Current Ratio: 4.43

PE: 11.06

PB: 1.36

It’s currently trading at $40.81 and I have a fair value of $65.00. The stock is still cheap and still has a good margin of safety.


Disclosure: Long on CSH

About the author:

David Chulak
David Chulak is a private investor that uses a value approach to investing in the styles of Graham & Dodd and Warren Buffet. Looks for that margin of safety in an effort to preserve capital and attempts to guard against short term market fluctuations by having clear rules laid down in advance for selling an equity. Likes to visit the company's where his investments are in order to understand the business better.

Rating: 3.5/5 (13 votes)

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