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TheStreet Open House

Why EZCORP (EZPW) Stock Is Down Today

NEW YORK (TheStreet) -- EZCORP (EZPW) was falling -9.2% to $10.10 Monday after the removal of CEO Paul Rothamel, chairman William Love, and director Joseph Bael from their positions.

The company appointed CFO Mark Kuchenrither as interim CEO and chairman to replace Rothamel and Love. Kuchenrither will remain as CFO while serving as interim CEO and chairman.

EZCORP also announced that Charles Bauer, which joined the board of directors, has resigned from his position.

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TheStreet Ratings team rates EZCORP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate EZCORP INC (EZPW) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • EZPW's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.19, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for EZCORP INC is rather high; currently it is at 67.67%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, EZPW's net profit margin of 3.07% significantly trails the industry average.
  • EZPW, with its decline in revenue, slightly underperformed the industry average of 1.5%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Consumer Finance industry. The net income has significantly decreased by 76.5% when compared to the same quarter one year ago, falling from $33.98 million to $7.99 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 40.64%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 77.27% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • You can view the full analysis from the report here: EZPW Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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