Tuesday, November 10, 2009

EZCorp one of my larger positions

It still has a P/E of 12 which is about 20% below the market average. To me a company that is expanding as fast as it is and only has a P/S and a P/B hovering around 1.4, combined with an ROA, ROE, and ROIC all around 20%, almost no debt and with increasing profits and cash-flow is still mispriced by the market today.

The only thing EZPW does not have going for it is a dividend. However, this is truly a growth story, as it cleans up a traditionally seedy business, expanding as fast as any franchise I know of, both organically and by acquisition, without having to invent anything.