Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

First Cash Financial Does Enough To Get By

It remains a good news/bad news situation over at First Cash Financial (NASDAQ:FCFS). The bad news is that the operating environment in both Mexico and the U.S. remains challenging and the company took on significantly higher interest expense to raise cash for expansion. The good news is that the company has aggressively managed its scrapping issues, the U.S. pawn industry remains ripe for consolidation (and maybe growth, too), and Mexico seems to be turning around. I still maintain that First Cash is a better-run pawn operator than EZCORP (NASDAQ:EZPW), which I recently profiled, but I cannot fairly argue that the upside potential today is so commanding as to ignore other players in the space (like...

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