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 52 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.
PRAA had positive earnings in 4 of the past 5 years.
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 1.37% is in line compared to the rest of the industry. PRAA outperforms 46.15% of its industry peers.
Looking at the Return On Equity, with a value of 5.81%, PRAA is doing worse than 63.46% of the companies in the same industry.
The Return On Invested Capital of PRAA (5.64%) is better than 67.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRAA is significantly below the industry average of 10.31%.
The 3 year average ROIC (4.53%) for PRAA is below the current ROIC(5.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 5.81% | ||
| ROIC | 5.64% |
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 6.27%, PRAA is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of PRAA has declined.
PRAA has a better Operating Margin (30.83%) than 88.46% of its industry peers.
In the last couple of years the Operating Margin of PRAA has grown nicely.
PRAA has a better Gross Margin (80.15%) than 75.00% 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 | 30.83% | ||
| PM (TTM) | 6.27% | ||
| GM | 80.15% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRAA is destroying value.
Compared to 1 year ago, PRAA has more shares outstanding
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 1.96. 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.
Looking at the Altman-Z score, with a value of 1.96, PRAA is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
A Debt/Equity ratio of 3.00 is on the high side and indicates that PRAA has dependencies on debt financing.
With a Debt to Equity ratio value of 3.00, PRAA perfoms like the industry average, outperforming 44.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.79
WACC7.16%
2.3 Liquidity
PRAA has a Current Ratio of 27.31. This indicates that PRAA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PRAA (27.31) is better than 100.00% of its industry peers.
A Quick Ratio of 27.31 indicates that PRAA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 27.31, PRAA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 27.31 | ||
| Quick Ratio | 27.31 |
3. Growth
3.1 Past
PRAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 430.26%, 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.
PRAA shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.03%.
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)430.26%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%0%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%35.69%
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 11.90% on average per year.
The Revenue is expected to grow by 4.80% on average over the next years.
EPS Next Y-18.51%
EPS Next 2Y11.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.32%
Revenue Next 2Y4.8%
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
Based on the Price/Earnings ratio of 8.73, the valuation of PRAA can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of PRAA indicates a somewhat cheap valuation: PRAA is cheaper than 71.15% of the companies listed in the same industry.
PRAA is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.97, the valuation of PRAA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRAA indicates a somewhat cheap valuation: PRAA is cheaper than 76.92% of the companies listed in the same industry.
PRAA is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
PRAA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PRAA is cheaper than 71.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRAA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.62
+0.24 (+1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners99.44%
Inst Owner Change2.41%
Ins Owners1.08%
Ins Owner Change20.37%
Market Cap619.49M
Analysts78
Price Target25.84 (65.43%)
Short Float %3.2%
Short Ratio2.21
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)1
Avg EPS beat(2)-37.96%
Min EPS beat(2)-80.05%
Max EPS beat(2)4.13%
EPS beat(4)3
Avg EPS beat(4)144.3%
Min EPS beat(4)-80.05%
Max EPS beat(4)541.71%
EPS beat(8)7
Avg EPS beat(8)117.64%
EPS beat(12)10
Avg EPS beat(12)54.59%
EPS beat(16)14
Avg EPS beat(16)47.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-7.57%
Max Revenue beat(2)4.23%
Revenue beat(4)2
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-7.57%
Max Revenue beat(4)5.25%
Revenue beat(8)5
Avg Revenue beat(8)-1.8%
Revenue beat(12)7
Avg Revenue beat(12)-2.82%
Revenue beat(16)9
Avg Revenue beat(16)-1.91%
PT rev (1m)-5%
PT rev (3m)-17.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-30.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 6.97 | ||
| P/S | 0.55 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.51 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)1.79
EY11.46%
EPS(NY)2.24
Fwd EY14.35%
FCF(TTM)-1.98
FCFYN/A
OCF(TTM)-1.87
OCFYN/A
SpS28.46
BVpS30.74
TBVpS20.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 5.81% | ||
| ROCE | 6.98% | ||
| ROIC | 5.64% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 6.43% | ||
| OM | 30.83% | ||
| PM (TTM) | 6.27% | ||
| GM | 80.15% | ||
| 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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.16 | ||
| Cap/Depr | 37.58% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 1.48 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 27.31 | ||
| Quick Ratio | 27.31 | ||
| Altman-Z | 1.96 |
F-Score5
WACC7.16%
ROIC/WACC0.79
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)430.26%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%0%
EPS Next Y-18.51%
EPS Next 2Y11.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)25.03%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%35.69%
Revenue Next Year2.32%
Revenue Next 2Y4.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y69.11%
EBIT growth 3Y-3.24%
EBIT growth 5Y4.57%
EBIT Next Year13.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-495.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2217.97%
OCF growth 3YN/A
OCF growth 5YN/A