Jim Cramer recently highlighted EZCORP (NASDAQ: EZPW) as a solid performer in the credit services space, describing it as a “very good stock” and a “well-run company” that operates effectively as a pawn and lending business. Trading near multi-year highs around $26, the stock reflects strong operational momentum, robust earnings growth, and a favorable valuation at approximately 15 times earnings amid resilient demand for pawn services.
Jim Cramer Endorses EZCORP as a Well-Run Credit Powerhouse
Jim Cramer, the longtime market commentator, recently turned his attention to EZCORP during a segment, offering praise for the company’s operational strength and business model. Responding to a discussion on the stock, he noted its position as a pawn-focused entity that functions primarily as a credit company. He emphasized that there’s nothing inherently problematic about this structure, pointing to its trading multiple of around 15 times earnings as reasonable. Cramer went further, calling it a “very good stock” and underscoring that it’s a “well-run company,” even adding a personal note that while he hasn’t needed to use their services, the execution stands out positively.
This endorsement arrives at a time when EZCORP has demonstrated consistent strength in its core operations. The company, headquartered in Austin, Texas, specializes in pawn lending and retail services across the United States, Mexico, and other parts of Latin America. Through brands like EZPAWN, Value Pawn & Jewelry, Empeño Fácil, and others, it provides collateralized loans against items such as jewelry, consumer electronics, tools, sporting goods, and musical instruments. It also retails forfeited merchandise and pre-owned goods purchased directly from customers.
Recent performance underscores the resilience and growth in this niche. In the most recent quarter (Q1 fiscal 2026), EZCORP delivered impressive results. Total revenues climbed 19% year-over-year to $382.0 million, while gross profit rose 20% to $223.0 million. Net income increased 43% to $44.3 million, with adjusted net income up 38% to $43.9 million. Diluted earnings per share grew 38% to $0.55, and adjusted EBITDA expanded 36% to $70.3 million, reflecting an EBITDA margin near 18.4%.
These gains were driven by solid contributions from both U.S. Pawn and Latin America Pawn segments. Pawn loans outstanding (PLO) showed healthy expansion, supporting higher interest and service charges alongside increased retail sales from merchandise dispositions. The company’s balance sheet remains strong, with cash and cash equivalents at approximately $465.9 million at quarter-end, providing flexibility for growth initiatives, potential share repurchases, and operational needs.
Looking at the full-year fiscal 2025 (ended September 2025), EZCORP posted record revenues and PLO levels. In Q4 fiscal 2025 alone, revenues rose 14% to $336.8 million, gross profit increased 13% to $198.6 million, and PLO grew 12%. Net income surged 76% to $26.7 million (adjusted up 45%), with diluted EPS up 62% to $0.34 (adjusted up 36%).
The stock has responded favorably to this track record. EZPW recently hit a 52-week high in the mid-$26 range, with the current price hovering around $25.93 to $26 (reflecting recent session closes and pre-market activity). Over the past year, shares have more than doubled from lows near $12.85, driven by earnings beats, operational execution, and broader market appreciation for value-oriented financial plays.
Key valuation metrics present an attractive picture. The stock trades at roughly 15 times forward earnings, aligning with Cramer’s observation. Analysts have responded positively, with recent upgrades and target price increases. Consensus leans toward “Moderate Buy,” with some targets in the $27-$28 range, implying further upside potential from current levels. Argus and other firms have maintained Buy ratings while lifting targets in response to the strong quarterly momentum.
Key Financial Highlights (Recent Quarters)
Revenue Growth : Consistent double-digit increases, fueled by higher PLO and retail performance.
Profitability : Sharp rises in net income and EPS, with adjusted figures stripping out non-recurring items showing sustained core strength.
Balance Sheet : Robust liquidity position supports strategic flexibility.
Segments :
U.S. Pawn: Stable demand in a higher-interest environment benefits collateral-based lending.
Latin America Pawn: Strong growth from expanding operations and favorable currency/consumer trends.
The pawn industry benefits from its counter-cyclical nature in certain conditions—providing quick access to cash for consumers facing economic pressures—while also capitalizing on retail margins from merchandise sales when defaults occur. EZCORP has invested in digital tools, such as the EZ+ app for managing transactions, layaways, and rewards, enhancing customer engagement and operational efficiency.
Cramer’s comments fit into a broader context where he often spotlights under-the-radar or niche names that deliver reliable execution. By framing EZCORP as a well-managed credit provider rather than just a “pawn stock,” he highlights its disciplined approach to risk, inventory management, and expansion in underserved markets.
For investors, the combination of Cramer’s nod, recent earnings strength, and a reasonable valuation creates a compelling case in the credit services sector. As economic conditions evolve, EZCORP’s model—rooted in tangible collateral and retail diversification—offers a buffer against volatility seen in traditional unsecured lending.
Disclaimer : This article is for informational purposes only and does not constitute investment advice, financial recommendations, or a solicitation to buy or sell securities. Investors should conduct their own research and consult qualified professionals before making decisions. Market conditions can change rapidly, and past performance is not indicative of future results.
