PRA GROUP INC (PRAA) Stock Fundamental Analysis
USA - NASDAQ:PRAA - US69354N1063 - Common Stock
16.33 USD
+0.4 (+2.51%)
16.33 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. Both the profitability and the financial health of PRAA get a neutral evaluation. Nothing too spectacular is happening here. PRAA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PRAA was profitable.
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
With a Return On Assets value of 1.69%, PRAA perfoms like the industry average, outperforming 41.82% of the companies in the same industry.
PRAA's Return On Equity of 6.85% is on the low side compared to the rest of the industry. PRAA is outperformed by 61.82% of its industry peers.
PRAA has a Return On Invested Capital of 5.30%. This is in the better half of the industry: PRAA outperforms 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRAA is significantly below the industry average of 11.61%.
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
PRAA has a Profit Margin (8.10%) which is comparable to the rest of the 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 85.45% of the companies in the same industry.
PRAA's Operating Margin has improved in the last couple of years.
PRAA's Gross Margin of 79.64% is fine compared to the rest of the industry. PRAA outperforms 72.73% of its industry peers.
In the last couple of years the Gross Margin of PRAA has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRAA 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 1.92 indicates that PRAA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.92, PRAA is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
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 of 2.83. This is comparable to the rest of the industry: PRAA outperforms 49.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.92 |
ROIC/WACC0.73
WACC7.22%
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.
The Current ratio of PRAA (24.69) is better than 100.00% of its industry peers.
A Quick Ratio of 24.69 indicates that PRAA has no problem at all paying its short term obligations.
PRAA's Quick ratio of 24.69 is amongst the best of the industry. PRAA outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 24.69 | ||
| Quick Ratio | 24.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.09% over the past year.
PRAA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.19% yearly.
The Revenue has grown by 11.41% 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)29.09%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%-23.19%
Revenue 1Y (TTM)11.41%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%10.54%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.50, the valuation of PRAA can be described as very reasonable.
PRAA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PRAA to the average of the S&P500 Index (25.89), we can say PRAA is valued rather cheaply.
PRAA is valuated cheaply with a Price/Forward Earnings ratio of 7.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRAA indicates a somewhat cheap valuation: PRAA is cheaper than 67.27% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PRAA to the average of the S&P500 Index (34.59), we can say PRAA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 7.54 |
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 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.07 |
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 |
16.33
+0.4 (+2.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners101.48%
Inst Owner Change-2.67%
Ins Owners1.47%
Ins Owner Change8.33%
Market Cap638.01M
Revenue(TTM)1.16B
Net Income(TTM)91.64M
Analysts78
Price Target26.18 (60.32%)
Short Float %1.76%
Short Ratio2.39
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)0%
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 | 11.5 | ||
| Fwd PE | 7.54 | ||
| P/S | 0.56 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.48 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)1.42
EY8.7%
EPS(NY)2.16
Fwd EY13.26%
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
Graham Number33.06
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%
ROICexgc growth 3Y-8.38%
ROICexgc 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 | 1.92 |
F-Score4
WACC7.22%
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)29.09%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%-23.19%
EPS Next Y-2.84%
EPS Next 2Y9.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.41%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%10.54%
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
PRA GROUP INC / PRAA FAQ
What is the fundamental rating for PRAA stock?
ChartMill assigns a fundamental rating of 5 / 10 to PRAA.
Can you provide the valuation status for PRA GROUP INC?
ChartMill assigns a valuation rating of 4 / 10 to PRA GROUP INC (PRAA). This can be considered as Fairly Valued.
How profitable is PRA GROUP INC (PRAA) stock?
PRA GROUP INC (PRAA) has a profitability rating of 5 / 10.
What is the financial health of PRA GROUP INC (PRAA) stock?
The financial health rating of PRA GROUP INC (PRAA) is 5 / 10.