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Stock impact report

EZCorp: Upcoming Student Loan Repayments May Provide Tailwinds For Pawn Loans [Seeking Alpha]

EZCORP, Inc. - Class A Non-Voting (EZPW) 
Last ezcorp, inc. - class a non-voting earnings: 2/3 04:01 pm Check Earnings Report
US:NASDAQ Investor Relations: investors.ezcorp.com
Company Research Source: Seeking Alpha
Yackers1/iStock Editorial via Getty ImagesIt's been a few months since I lastcoveredbuyNASDAQ:EZPWEZCORPcontinued to deliver strong YoY growth in revenues and earnings as financially stretched consumers must resort to alternative credit solutions like pawn loans. With the upcoming restart of student loan repayments in October, I expect EZPW will continue to see tailwinds to its U.S. business for quarters to come.Brief Company OverviewEZCORP operates one of the largest chain of pawn stores in the U.S. and Latin America with over 1,200 retail stores across 5 countries (Figure 1).Figure 1 - EZPW overview(EZPW investor presentation)Pawn loans are consumer loans that are fully collateralized by the pawned merchandise andhave very low credit risk. This is in stark contrast to other forms of risky consumer lending like payday loans.Historically, the use of pawn services is counter-cyclical; low-income consumers tend to fall back on pawn loans during tough economic times.Readers interested in Show less Read more
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