PRA GROUP INC (PRAA)
US69354N1063 - Common Stock
We assign a fundamental rating of 4 out of 10 to PRAA. PRAA was compared to 52 industry peers in the Consumer Finance industry. PRAA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. PRAA has a decent growth rate and is not valued too expensively.
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.
PRAA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PRAA has a Return On Assets of 0.08%. This is in the lower half of the industry: PRAA underperforms 67.31% of its industry peers.
PRAA has a worse Return On Equity (0.34%) than 67.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.25%, PRAA is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PRAA is below the industry average of 7.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.08% | ||
| ROE | 0.34% | ||
| ROIC | 4.25% |
ROA(3y)1.72%
ROA(5y)2.09%
ROE(3y)5.54%
ROE(5y)7.03%
ROIC(3y)4.74%
ROIC(5y)5.07%
1.3 Margins
PRAA's Profit Margin of 0.40% is on the low side compared to the rest of the industry. PRAA is outperformed by 67.31% of its industry peers.
PRAA has a better Operating Margin (25.51%) than 84.62% of its industry peers.
PRAA's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 78.67%, PRAA is doing good in the industry, outperforming 73.08% of the companies in the same industry.
In the last couple of years the Gross Margin of PRAA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.51% | ||
| PM (TTM) | 0.4% | ||
| GM | 78.67% |
OM growth 3Y-26.24%
OM growth 5Y-11.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.56%
GM growth 5Y-2.25%
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.
PRAA has more shares outstanding than it did 1 year ago.
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
PRAA has an Altman-Z score of 1.96. 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.
With a decent Altman-Z score value of 1.96, PRAA is doing good in the industry, outperforming 78.85% of the companies in the same industry.
A Debt/Equity ratio of 2.82 is on the high side and indicates that PRAA has dependencies on debt financing.
PRAA has a Debt to Equity ratio of 2.82. This is comparable to the rest of the industry: PRAA outperforms 42.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.69
WACC6.13%
2.3 Liquidity
A Current Ratio of 20.40 indicates that PRAA has no problem at all paying its short term obligations.
PRAA has a Current ratio of 20.40. This is amongst the best in the industry. PRAA outperforms 100.00% of its industry peers.
PRAA has a Quick Ratio of 20.40. This indicates that PRAA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 20.40, PRAA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 20.4 | ||
| Quick Ratio | 20.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 117.50% over the past year.
Looking at the last year, PRAA shows a quite strong growth in Revenue. The Revenue has grown by 17.45% in the last year.
The Revenue has been decreasing by -2.45% on average over the past years.
EPS 1Y (TTM)117.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%640%
Revenue 1Y (TTM)17.45%
Revenue growth 3Y-9.01%
Revenue growth 5Y-2.45%
Sales Q2Q%10.56%
3.2 Future
PRAA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 71.29% yearly.
The Revenue is expected to grow by 19.35% on average over the next years. This is quite good.
EPS Next Y163.39%
EPS Next 2Y71.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year35.37%
Revenue Next 2Y19.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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 212.20, PRAA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PRAA indicates a slightly more expensive valuation: PRAA is more expensive than 71.15% of the companies listed in the same industry.
PRAA is valuated expensively when we compare the Price/Earnings ratio to 30.52, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.66, the valuation of PRAA can be described as reasonable.
PRAA's Price/Forward Earnings is on the same level as the industry average.
PRAA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 212.2 | ||
| Fwd PE | 10.66 |
4.2 Price Multiples
65.38% of the companies in the same industry are more expensive than PRAA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.89 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PRAA's earnings are expected to grow with 71.29% in the coming years.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y71.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PRAA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PRA GROUP INC
NASDAQ:PRAA (9/16/2024, 2:48:18 PM)
21.22
-0.45 (-2.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap836.49M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 212.2 | ||
| Fwd PE | 10.66 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.08% | ||
| ROE | 0.34% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.51% | ||
| PM (TTM) | 0.4% | ||
| GM | 78.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 20.4 | ||
| Quick Ratio | 20.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)117.5%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y163.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.45%
Revenue growth 3Y-9.01%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y