PRA GROUP INC (PRAA) Stock Fundamental Analysis
NASDAQ:PRAA - Nasdaq - US69354N1063 - Common Stock - Currency: USD
PRAA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 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
PRAA had positive earnings in the past year.
PRAA had a negative operating cash flow in the past year.
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 has a Return On Assets (0.88%) which is in line with its industry peers.
The Return On Equity of PRAA (3.56%) is worse than 65.38% of its industry peers.
PRAA has a better Return On Invested Capital (4.96%) than 73.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRAA is below the industry average of 7.36%.
The 3 year average ROIC (4.53%) for PRAA is below the current ROIC(4.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 3.56% | ||
| ROIC | 4.96% |
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 4.16%, PRAA is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of PRAA has declined.
Looking at the Operating Margin, with a value of 27.94%, PRAA belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
PRAA's Operating Margin has improved in the last couple of years.
The Gross Margin of PRAA (79.25%) is better than 75.00% of its industry peers.
PRAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.94% | ||
| PM (TTM) | 4.16% | ||
| GM | 79.25% |
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.
The number of shares outstanding for PRAA has been increased compared to 1 year ago.
Compared to 5 years ago, PRAA has less shares outstanding
The debt/assets ratio for PRAA is higher compared to a year ago.
2.2 Solvency
PRAA has an Altman-Z score of 1.97. This is not the best score and indicates that PRAA is in the grey zone with still only limited risk for bankruptcy at the moment.
PRAA has a better Altman-Z score (1.97) than 69.23% of its industry peers.
A Debt/Equity ratio of 2.81 is on the high side and indicates that PRAA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.81, PRAA is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACC0.75
WACC6.62%
2.3 Liquidity
PRAA has a Current Ratio of 22.33. This indicates that PRAA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 22.33, PRAA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PRAA has a Quick Ratio of 22.33. This indicates that PRAA is financially healthy and has no problem in meeting its short term obligations.
PRAA has a Quick ratio of 22.33. This is amongst the best in the industry. PRAA outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 22.33 | ||
| Quick Ratio | 22.33 |
3. Growth
3.1 Past
PRAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 183.96%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.19% on average over the past years.
PRAA shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.88%.
Measured over the past years, PRAA shows a small growth in Revenue. The Revenue has been growing by 1.85% on average per year.
EPS 1Y (TTM)183.96%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%313.64%
Revenue 1Y (TTM)38.88%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%32.43%
3.2 Future
PRAA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.09% yearly.
The Revenue is expected to grow by 6.95% on average over the next years.
EPS Next Y17.24%
EPS Next 2Y26.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.61%
Revenue Next 2Y6.95%
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 12.30, which indicates a correct valuation of PRAA.
The rest of the industry has a similar Price/Earnings ratio as PRAA.
PRAA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.53.
PRAA is valuated reasonably with a Price/Forward Earnings ratio of 10.49.
PRAA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.65. PRAA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRAA is valued a bit cheaper than 67.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.72 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PRAA's earnings are expected to grow with 26.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y26.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRAA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PRAA (2/25/2025, 10:04:41 AM)
22.01
+0.1 (+0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners98.9%
Inst Owner Change-86.99%
Ins Owners1.09%
Ins Owner Change0.16%
Market Cap867.85M
Analysts78
Price Target30.6 (39.03%)
Short Float %1.07%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)326.55%
Min EPS beat(2)111.4%
Max EPS beat(2)541.71%
EPS beat(4)4
Avg EPS beat(4)241.96%
Min EPS beat(4)41.71%
Max EPS beat(4)541.71%
EPS beat(8)7
Avg EPS beat(8)79.01%
EPS beat(12)11
Avg EPS beat(12)64.14%
EPS beat(16)15
Avg EPS beat(16)56.62%
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-7.44%
Max Revenue beat(2)5.25%
Revenue beat(4)2
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-16.53%
Max Revenue beat(4)5.25%
Revenue beat(8)4
Avg Revenue beat(8)-5.55%
Revenue beat(12)6
Avg Revenue beat(12)-3.15%
Revenue beat(16)10
Avg Revenue beat(16)-1.03%
PT rev (1m)2.27%
PT rev (3m)5.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.91%
EPS NY rev (3m)-1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 10.49 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.71 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 13.72 |
EPS(TTM)1.79
EY8.13%
EPS(NY)2.1
Fwd EY9.53%
FCF(TTM)-3.05
FCFYN/A
OCF(TTM)-2.96
OCFYN/A
SpS26.44
BVpS30.91
TBVpS20.18
PEG (NY)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 3.56% | ||
| ROCE | 6.14% | ||
| ROIC | 4.96% | ||
| ROICexc | 5.11% | ||
| ROICexgc | 5.7% | ||
| OM | 27.94% | ||
| PM (TTM) | 4.16% | ||
| GM | 79.25% | ||
| 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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.81 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 11.33 | ||
| Cap/Depr | 31.41% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 22.33 | ||
| Quick Ratio | 22.33 | ||
| Altman-Z | 1.97 |
F-Score5
WACC6.62%
ROIC/WACC0.75
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)183.96%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%313.64%
EPS Next Y17.24%
EPS Next 2Y26.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)38.88%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%32.43%
Revenue Next Year6.61%
Revenue Next 2Y6.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y144.2%
EBIT growth 3Y-3.24%
EBIT growth 5Y4.57%
EBIT Next Year17.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-22.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-25.14%
OCF growth 3YN/A
OCF growth 5YN/A