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Posted by
Two Blokes Jun 5 -
Filed in
Stock
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EZCORP benefits from a countercyclical pawn business model, thriving during economic stress and inflation as demand for short-term loans and pre-owned goods rises. The company is an indirect beneficiary of surging gold prices, which boosts loan values, inventory gains, and overall profitability due to its jewelry-heavy collateral base. EZPW trades at a low price-to-book ratio relative to its sustainable ROE, offering an attractive yield and potential upside, especially with digital initiatives underway.