An OUTPERFORM, WAIT AND SEE, or STAY AWAY with shares of EZCORP (NASDAQ:EZPW) trading around $19.24, is EZPW? LetвЂ™s evaluate the stock aided by the appropriate parts of our CHEAT SHEET framework that is investing
C = Catalyst for the StockвЂ™s motion
EZCORP announced the purchase of a delaware-based payday that is online for $50 million in either money or stock, in the companyвЂ™s discernment. You will find few world-class online payday lenders in america, and people which have accomplished this degree of success did therefore by developing robust and underwriting that is beneficial information analytics.
This is certainly just the 2nd purchase of an entity that is online a brick-and-mortar procedure. The past one ended up being CashNetUSA by Cash America (NYSE:CSH), which turned into a blockbuster for the acquirer.
The organization has stated it’ll facilitate the expansion of online financing internationally, that may considerably enhance income into the years that are coming.
E = financial obligation to Equity Ratio is significantly less than 25percent
EZCORP usually has carried hardly any financial obligation, but took in close to $200 million a year ago to simply help fund purchases, including the lending operation that is online. With $834 million in shareholder equity, the debt-to-equity ratio is just 24%.
Consider a couple of things. First, your debt can be used for accretive purposes, in place of to invest in the core company. 2nd, the cash that is total long haul assets is $366 million, so that it vastly surpasses the actual quantity of long haul financial obligation which actually exists.
EZCORP can also be in a powerful place along with almost all of its peers with this metric.
Money America has $503 million with debt, $63 million in cash, and shareholder equity of $903 million, offering it a ratio that is d-to-e of%.