Measured Approach

Data as of

: 11/15/2009

Industry: Retail (Specialty Non-Apparel)

Current Data

Current Price $14.43 PEG 0.2Market Cap ($M) $711.25 EPS TTM ($) 1.42Shares Outstanding (M) 49.2 P/E TTM 10.2XInstitutional Holdings % 75.6 EPS Estimated 2010 ($) 1.66Insider Holdings % 21.8 P/Estimated EPS 8.7XBeta 1.04

MA Value ($) 16.65

Latest Quarter Reported 09/30/2009 Price Value Ratio 0.87

EZCORP (EZPW)

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Fast Growth, Solid Profits, Low PriceEZCorp offers pawn loans in 294 U.S.-based pawn shops and at 38 Mexico pawn shops.The company also sells forfeited collateral from its pawn shop operations. In 477EZMONEY stores and 71 of its pawn shops, EZPW offers short-term, non-collateralizedloans (pay-day loans.)

HIGHLIGHTS

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EZCORP Inc. (EZPW) reported net income of $20.9 million or $0.42 per share forthe fourth quarter, compared to $16.0 million or $0.37 per share in the prioryear quarter. Total Revenues for the fourth quarter increased 34% to $164.8million from $123.4 million in the previous year quarter.

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For the trailing twelve month period ending 09/30/09, EPS was $1.44. Consensusestimate for FY10 is $1.66.

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The company announced that it has completed its acquisition of 108.22 millionnewly issued ordinary shares of Cash Converters International Limited,headquartered in Perth, Australia. EZCORP paid AUS $0.50 per share, for a totalinvestment of AUS $54.11 million or about US$49.4 million U.S., and now ownsabout 30% of the outstanding ordinary shares of Cash Converters. The CashConverters shares are listed on the Australian Stock Exchange and the LondonStock Exchange (symbol, "CCVU"). EZCORP funded the investment primarily withcash on hand and expects the investment to be immediately accretive toearnings.

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The PE ratio relative to the average 3-year, 5-year and 7-year EPS growth rate is0.25X

Analysis of the Balance Sheet

The schedule presented below shows the year-end balance sheets for the yearsbetween September 30, 2004 and September 30, 2009. Accounts receivable and

inventory comprise approximately 72 percent of the business’s current assets.

Approximately 16 percent of current assets are cash. The company reports no short-term investments.Fixed assets (net property, plant and equipment) make up approximately 24 percent of

the business’s non

current assets. As the company’s revenues have increased, the fixed

assets also have risen.

Overall, the business’s total assets have approximately

tripled during the periodpresented below. The increase in total assets has been due primarily to increases inaccounts receivable and secondarily to increases in inventory and other current assets.Accounts payable comprise the largest segment of current liabilities. They compriseapproximately 70 percent of current liabilities. The company carries a modest amount of short term and long term debt.

As the company’s earnings steadily increased, so did its equity. The company increased

equity by approximately 166% during the period presented.

Balance Sheet

(Amounts in Millions)

Assets

TTM09/30/09FYE09/30/08FYE09/30/07FYE09/30/06FYE09/30/05FYE09/30/04Cash 44.8 27.4 22.5 29.9 4.2 2.5ST Investments 0.0 0.0 0.0 0.0 0.0 0.0Accounts Receivable 136.0 101.2 81.7 65.4 67.3 66.5Inventory 64.0 43.2 37.9 35.6 30.3 30.6Other Current Assets 32.6 20.0 15.1 11.1 12.5 12.0Total Current Assets 277.4 191.9 157.2 142.0 114.3 111.7Net Property,Plant & Equip. 51.2 40.1 33.8 29.4 27.0 25.8LT Investments 38.9 38.4 35.7 19.3 17.3 17.6Goodwill/Intangibles 100.7 26.7 17.1 0.8 0.0 0.0Other LT Assets 24.4 11.6 7.3 6.4 6.9 9.2

Total Assets 492.5 308.7 251.2 197.9 165.4 164.3Liabilities

Accounts Payable 33.8 5.7 6.2 22.6 19.0 14.9Short Term Debt 10.0 0.0 0.0 0.0 0.0 0.0Other Current Liabilities 4.7 26.3 26.2 1.9 2.3 3.7Total Current Liabilities 48.6 32.0 32.4 24.5 21.3 18.6LT Debt 25.0 0.0 0.0 0.0 7.0 25.0Other LT Liabilities 3.2 3.7 2.9 3.2 3.6 4.0

Total Liabilities

76.8 35.7 35.3 27.7 31.9 47.6Preferred Stock 0.0 0.0 0.0 0.0 0.0 0.0Common Stock Equity 415.7 273.1 215.9 170.1 133.5 116.7

Total Liabilities & Equity 492.5 308.8 251.2 197.8 165.4 164.3

Book Value Per Share 8.65 6.30 5.26 4.31 3.58 3.17

Analysis of the Income Statement

As part of my analysis, I analyzed EZPW’s income

statements for the years endedSeptember 30, 2004 through September 30, 2009.Revenues have increased from $227.8 million for the year ending September 30, 2004to $597.5 million in the year ending September 30, 2009. During this period, grossprofit margins remained fairly steady ranging from 61.3 percent to 69.5 percent. Theresult is a near tripling of gross profit dollars for the year ending September 30, 2009 ascompared to September 30, 2004.Operating expenses as a percentage of sales have declined over the years. For the yearending September 30, 2004, operating expenses as a percentage of sales was 93.7percent. Operating expenses as a percent of sales declined to 83 percent in the yearending September 30, 2009.