PRA GROUP INC (PRAA) Stock Fundamental Analysis
USA - NASDAQ:PRAA - US69354N1063 - Common Stock
13.75 USD
+0.22 (+1.63%)
13.75 USD
0 (0%)
PRAA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Consumer Finance industry. PRAA has only an average score on both its financial health and profitability. PRAA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PRAA had positive earnings in the past year.
PRAA had a negative operating cash flow in the past year.
PRAA had positive earnings in 4 of the past 5 years.
In multiple years PRAA reported negative operating cash flow during the last 5 years.
1.2 Ratios
PRAA has a Return On Assets (1.69%) which is in line with its industry peers.
PRAA's Return On Equity of 6.85% is in line compared to the rest of the industry. PRAA outperforms 43.64% of its industry peers.
The Return On Invested Capital of PRAA (5.30%) is better than 67.27% of its industry peers.
PRAA had an Average Return On Invested Capital over the past 3 years of 4.53%. This is significantly below the industry average of 10.98%.
The last Return On Invested Capital (5.30%) for PRAA is above the 3 year average (4.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 6.85% | ||
| ROIC | 5.3% |
ROA(3y)0.8%
ROA(5y)1.99%
ROE(3y)2.87%
ROE(5y)6.79%
ROIC(3y)4.53%
ROIC(5y)5.51%
1.3 Margins
PRAA has a Profit Margin (8.10%) which is in line with its industry peers.
PRAA's Profit Margin has declined in the last couple of years.
PRAA has a Operating Margin of 30.37%. This is amongst the best in the industry. PRAA outperforms 87.27% of its industry peers.
In the last couple of years the Operating Margin of PRAA has grown nicely.
PRAA has a Gross Margin of 79.64%. This is in the better half of the industry: PRAA outperforms 72.73% of its industry peers.
PRAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.37% | ||
| PM (TTM) | 8.1% | ||
| GM | 79.64% |
OM growth 3Y-3.79%
OM growth 5Y2.67%
PM growth 3Y-27.64%
PM growth 5Y-5.66%
GM growth 3Y-0.62%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
PRAA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PRAA has more shares outstanding
PRAA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PRAA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.91 indicates that PRAA is not a great score, but indicates only limited risk for bankruptcy at the moment.
PRAA has a better Altman-Z score (1.91) than 70.91% of its industry peers.
A Debt/Equity ratio of 2.83 is on the high side and indicates that PRAA has dependencies on debt financing.
The Debt to Equity ratio of PRAA (2.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.91 |
ROIC/WACC0.76
WACC6.98%
2.3 Liquidity
PRAA has a Current Ratio of 24.69. This indicates that PRAA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 24.69, PRAA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 24.69 indicates that PRAA has no problem at all paying its short term obligations.
The Quick ratio of PRAA (24.69) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 24.69 | ||
| Quick Ratio | 24.69 |
3. Growth
3.1 Past
PRAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1512.24%, which is quite impressive.
Measured over the past years, PRAA shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.19% on average per year.
The Revenue has grown by 15.79% in the past year. This is quite good.
PRAA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.85% yearly.
EPS 1Y (TTM)1512.24%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%-38.89%
Revenue 1Y (TTM)15.79%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%-1.31%
3.2 Future
Based on estimates for the next years, PRAA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.98% on average per year.
PRAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.49% yearly.
EPS Next Y-2.84%
EPS Next 2Y9.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.74%
Revenue Next 2Y6.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.70, which indicates a very decent valuation of PRAA.
PRAA's Price/Earnings ratio is a bit cheaper when compared to the industry. PRAA is cheaper than 65.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, PRAA is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.35, the valuation of PRAA can be described as very cheap.
Based on the Price/Forward Earnings ratio, PRAA is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRAA to the average of the S&P500 Index (23.18), we can say PRAA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 6.35 |
4.2 Price Multiples
PRAA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PRAA is cheaper than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.78 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PRAA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.75
+0.22 (+1.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners101.48%
Inst Owner Change-0.14%
Ins Owners1.47%
Ins Owner Change7.33%
Market Cap537.21M
Analysts78
Price Target26.18 (90.4%)
Short Float %3.02%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-53.26%
Min EPS beat(2)-80.05%
Max EPS beat(2)-26.47%
EPS beat(4)2
Avg EPS beat(4)2.25%
Min EPS beat(4)-80.05%
Max EPS beat(4)111.4%
EPS beat(8)6
Avg EPS beat(8)110.46%
EPS beat(12)9
Avg EPS beat(12)46.95%
EPS beat(16)13
Avg EPS beat(16)41.88%
Revenue beat(2)0
Avg Revenue beat(2)-13.72%
Min Revenue beat(2)-19.87%
Max Revenue beat(2)-7.57%
Revenue beat(4)2
Avg Revenue beat(4)-4.49%
Min Revenue beat(4)-19.87%
Max Revenue beat(4)5.25%
Revenue beat(8)4
Avg Revenue beat(8)-4.29%
Revenue beat(12)6
Avg Revenue beat(12)-5.17%
Revenue beat(16)8
Avg Revenue beat(16)-3.71%
PT rev (1m)0%
PT rev (3m)1.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.09%
EPS NY rev (1m)0%
EPS NY rev (3m)19.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 6.35 | ||
| P/S | 0.47 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.4 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 11.78 |
EPS(TTM)1.58
EY11.49%
EPS(NY)2.16
Fwd EY15.75%
FCF(TTM)-1.59
FCFYN/A
OCF(TTM)-1.47
OCFYN/A
SpS28.97
BVpS34.22
TBVpS22.97
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 6.85% | ||
| ROCE | 6.56% | ||
| ROIC | 5.3% | ||
| ROICexc | 5.43% | ||
| ROICexgc | 6.03% | ||
| OM | 30.37% | ||
| PM (TTM) | 8.1% | ||
| GM | 79.64% | ||
| FCFM | N/A |
ROA(3y)0.8%
ROA(5y)1.99%
ROE(3y)2.87%
ROE(5y)6.79%
ROIC(3y)4.53%
ROIC(5y)5.51%
ROICexc(3y)4.64%
ROICexc(5y)5.63%
ROICexgc(3y)5.26%
ROICexgc(5y)6.43%
ROCE(3y)5.61%
ROCE(5y)6.81%
ROICexcg growth 3Y-8.38%
ROICexcg growth 5Y1.7%
ROICexc growth 3Y-7.26%
ROICexc growth 5Y2.27%
OM growth 3Y-3.79%
OM growth 5Y2.67%
PM growth 3Y-27.64%
PM growth 5Y-5.66%
GM growth 3Y-0.62%
GM growth 5Y-0.7%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.64 | ||
| Cap/Depr | 37.51% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 24.69 | ||
| Quick Ratio | 24.69 | ||
| Altman-Z | 1.91 |
F-Score4
WACC6.98%
ROIC/WACC0.76
Cap/Depr(3y)46.83%
Cap/Depr(5y)61.33%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1512.24%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%-38.89%
EPS Next Y-2.84%
EPS Next 2Y9.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.79%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%-1.31%
Revenue Next Year4.74%
Revenue Next 2Y6.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y37.88%
EBIT growth 3Y-3.24%
EBIT growth 5Y4.57%
EBIT Next Year7.62%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-162.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-231.01%
OCF growth 3YN/A
OCF growth 5YN/A