EZCORP: Fast Growth, Solid Profits, Low Price

EZCorp offers pawn loans in 294 U.S.-based pawn shops and at 38 Mexico pawn shops. The company also sells forfeited collateral from its pawn shop operations. In 477 EZMONEY stores and 71 of its pawn shops, EZPW offers short-term, non-collateralized loans (pay-day loans.)

EZCORP Inc. (EZPW) reported net income of $20.9 million or $0.42 per share for the fourth quarter, compared to $16.0 million or $0.37 per share in the prior year quarter. Total Revenues for the fourth quarter increased 34% to $164.8 million from $123.4 million in the previous year quarter.

For the trailing twelve month period ending 09/30/09, EPS was $1.44. Consensus estimate for FY10 is $1.66.

The company announced that it has completed its acquisition of 108.22 million newly issued ordinary shares of Cash Converters International Limited, headquartered in Perth, Australia. EZCORP paid AUS $0.50 per share, for a total investment of AUS $54.11 million or about US$49.4 million U.S., and now owns about 30% of the outstanding ordinary shares of Cash Converters. The Cash Converters shares are listed on the Australian Stock Exchange and the London Stock Exchange (symbol, "CCVU"). EZCORP funded the investment primarily with cash on hand and expects the investment to be immediately accretive to earnings.

The PE ratio relative to the average 3-year, 5-year and 7-year EPS growth rate is 0.25X

Disclosure: Author is long EZPW.