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Growth is good because it increases earnings meaningfully and lets the current P/E ratio go down. This is the reason investors pay 20, 50 or even 100 times earnings for an investment. But you really make money if you buy a stock that beats analyst expectations and generates additional growth fantasies. Let’s take a look into the credit services industry. The industry offers a current dividend yield of 1.5 percent. The average price-to-earnings ratio amounts to 19.9.

I analyzed the credit services industry by growth stocks. My first condition is that the 5-year sales and earnings per share growth should be above 10 percent. Further, the company should have additional growth potential, measured by an expected 5-year EPS growth of more than 10 percent yearly. Finally, the growth should create value. This fact is covered by the ratio return on investment (ROI). The ratio shows how efficiently a company converts its debt and equity into profits. I decided to screen only stocks with a ROI of more than 5 percent. Here are the results:

1. DFC Global (NASDAQ:DLLR) has a market capitalization of $962.5 million, generates revenue in an amount of $788.4 million and a net income of $65.8 million. Its P/E ratio is 13.3 and forward price-to-earnings 8.5, Price/Sales 1.2 and Price/Book ratio 2.3. Dividend Yield: 0 percent. The company grew 17.1 percent in sales and 46.2 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 17.0 percent. The ROI is 5.3 percent.

2. Cash America International (NYSE:CSH) has a market capitalization of $1.6 billion, generates revenue in an amount of $1.4 billion and a net income of $126.0 million. Its P/E ratio is 14.3 and forward price-to-earnings ratio 11.2, Price/Sales 1.2 and Price/Book ratio 2.0. Dividend Yield: 0.25 percent. The company grew 16.8 percent in sales and 19.8 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 15.3 percent. The ROI is 9.9 percent.

3. First Cash Financial Services (NASDAQ:FCFS) has a market capitalization of $1.4 billion, generates revenue in an amount of $479.2 million and a net income of $63.6 million. Its P/E ratio is 22.0 and forward price-to-earnings ratio 16.6, Price/Sales 2.8 and Price/Book ratio 4.2. Dividend Yield: 0 percent. The company grew 16.5 percent in sales and 20.6 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 18.5 percent. The ROI is 21.9 percent.

4. World Acceptance (NASDAQ:WRLD) has a market capitalization of $918.5 million, generates revenue in an amount of $504.2 million and a net income of $92.7 million. Its P/E ratio is 10.6 and forward price-to-earnings ratio 8.4, Price/Sales 1.8 and Price/Book ratio 2.2. Dividend Yield: 0 percent. The company grew 15.1 percent in sales and 22.8 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 11.0 percent. The ROI is 14.8 percent.

Source: 4 Fastest-Growing Credit Services Stocks