PRA GROUP INC (PRAA) Stock Fundamental Analysis
USA - NASDAQ:PRAA - US69354N1063 - Common Stock
16.59 USD
-0.08 (-0.48%)
16.55 USD
-0.04 (-0.24%)
Taking everything into account, PRAA scores 5 out of 10 in our fundamental rating. PRAA was compared to 54 industry peers in the Consumer Finance industry. PRAA has an average financial health and profitability rating. PRAA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PRAA was profitable.
In the past year PRAA has reported a negative cash flow from operations.
Of the past 5 years PRAA 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: PRAA reported negative operating cash flow in multiple years.
1.2 Ratios
PRAA's Return On Assets of 1.69% is in line compared to the rest of the industry. PRAA outperforms 48.15% of its industry peers.
With a Return On Equity value of 6.85%, PRAA perfoms like the industry average, outperforming 42.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.30%, PRAA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PRAA is significantly below the industry average of 11.02%.
The 3 year average ROIC (4.53%) for PRAA is below the current ROIC(5.30%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 8.10%, PRAA perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
In the last couple of years the Profit Margin of PRAA has declined.
Looking at the Operating Margin, with a value of 30.37%, PRAA belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
PRAA's Operating Margin has improved in the last couple of years.
PRAA has a better Gross Margin (79.64%) than 72.22% 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.
The number of shares outstanding for PRAA has been increased compared to 1 year ago.
The number of shares outstanding for PRAA has been reduced compared to 5 years ago.
Compared to 1 year ago, PRAA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.93 indicates that PRAA is not a great score, but indicates only limited risk for bankruptcy at the moment.
PRAA's Altman-Z score of 1.93 is fine compared to the rest of the industry. PRAA outperforms 70.37% of its industry peers.
PRAA has a Debt/Equity ratio of 2.83. This is a high value indicating a heavy dependency on external financing.
PRAA has a Debt to Equity ratio (2.83) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC0.73
WACC7.23%
2.3 Liquidity
A Current Ratio of 24.69 indicates that PRAA has no problem at all paying its short term obligations.
With an excellent Current ratio value of 24.69, PRAA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PRAA has a Quick Ratio of 24.69. This indicates that PRAA is financially healthy and has no problem in meeting 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.
PRAA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.19% yearly.
PRAA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.79%.
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.
Based on estimates for the next years, PRAA will show a small growth in Revenue. The Revenue will grow by 6.49% on average per year.
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
With a Price/Earnings ratio of 10.50, the valuation of PRAA can be described as very reasonable.
PRAA's Price/Earnings ratio is a bit cheaper when compared to the industry. PRAA is cheaper than 61.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. PRAA is valued rather cheaply when compared to this.
PRAA is valuated cheaply with a Price/Forward Earnings ratio of 7.66.
Based on the Price/Forward Earnings ratio, PRAA is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
PRAA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 7.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRAA indicates a somewhat cheap valuation: PRAA is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.09 |
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
PRAA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.59
-0.08 (-0.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners97.42%
Inst Owner Change-0.19%
Ins Owners1.47%
Ins Owner Change11.11%
Market Cap648.17M
Analysts78
Price Target26.18 (57.81%)
Short Float %2.66%
Short Ratio3.67
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)-1.84%
EPS NQ rev (3m)-34.08%
EPS NY rev (1m)19.23%
EPS NY rev (3m)19.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)2.36%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 7.66 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.48 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 12.09 |
EPS(TTM)1.58
EY9.52%
EPS(NY)2.16
Fwd EY13.05%
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 | 1.93 |
F-Score4
WACC7.23%
ROIC/WACC0.73
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 Year8.6%
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