Anyone that thinks Cash America International (CSH, Financial) 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.
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
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
