Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- Consumer Portfolio Services (Nasdaq: CPSS) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
- The revenue growth greatly exceeded the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 41.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CONSUMER PORTFOLIO SVCS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CONSUMER PORTFOLIO SVCS INC continued to lose money by earning -$0.77 versus -$1.90 in the prior year. This year, the market expects an improvement in earnings ($0.31 versus -$0.77).
- 46.80% is the gross profit margin for CONSUMER PORTFOLIO SVCS INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CPSS's net profit margin of 5.70% significantly trails the industry average.
- Powered by its strong earnings growth of 155.00% and other important driving factors, this stock has surged by 343.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
-- Written by a member of TheStreet Ratings Staff