miriam-doerr/iStock via Getty Images
Trends have been solidly in FirstCash’s (NASDAQ:FCFS) favor in a year or so since I last wrote about this leading pawn lender and lease-to-own financier. Not only has inflation put some pressure
FirstCash Stands To Benefit From Pressures On Both Consumers And Other Lenders
Summary
- FirstCash's access to attractively priced capital and ability to expand credit availability when many rivals are forced to pull back is a key advantage right now.
- Regulatory changes targeting banks' capital and fees could further reduce credit availability and drive more customers toward FirstCash's small-value loans.
- The pawn business, which generates the majority of profits, has seen double-digit growth in loans outstanding and fees, helped by pressures on both customers and other credit providers.
- FirstCash isn't as cheap as I'd like, but should still generate a respectable return from here with execution-driven upside.
Stephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).
Analyst’s Disclosure:I/we have a beneficial long position in the shares of FCFS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.