PROG HOLDINGS INC (PRG) Stock Fundamental Analysis
USA - NYSE:PRG - US74319R1014 - Common Stock
27.73 USD
-0.24 (-0.86%)
27.73 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PRG. PRG was compared to 55 industry peers in the Consumer Finance industry. PRG has an excellent financial health rating, but there are some minor concerns on its profitability. PRG is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make PRG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
PRG had positive earnings in the past year.
PRG had a positive operating cash flow in the past year.
Of the past 5 years PRG 4 years were profitable.
PRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.60%, PRG belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.29%, PRG belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
PRG has a Return On Invested Capital of 11.22%. This is amongst the best in the industry. PRG outperforms 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRG is in line with the industry average of 11.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 23.29% | ||
| ROIC | 11.22% |
ROA(3y)9.65%
ROA(5y)7.86%
ROE(3y)23.71%
ROE(5y)20.15%
ROIC(3y)11.83%
ROIC(5y)13.95%
1.3 Margins
PRG has a Profit Margin of 6.54%. This is in the lower half of the industry: PRG underperforms 61.82% of its industry peers.
In the last couple of years the Profit Margin of PRG has grown nicely.
PRG has a Operating Margin (8.88%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PRG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.88% | ||
| PM (TTM) | 6.54% | ||
| GM | N/A |
OM growth 3Y-10.82%
OM growth 5Y1.88%
PM growth 3Y-4.16%
PM growth 5Y58.6%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PRG is still creating some value.
PRG has less shares outstanding than it did 1 year ago.
PRG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PRG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.49 indicates that PRG is not in any danger for bankruptcy at the moment.
PRG has a Altman-Z score of 4.49. This is amongst the best in the industry. PRG outperforms 92.73% of its industry peers.
The Debt to FCF ratio of PRG is 2.01, which is a good value as it means it would take PRG, 2.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PRG (2.01) is better than 83.64% of its industry peers.
PRG has a Debt/Equity ratio of 0.85. This is a neutral value indicating PRG is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.85, PRG is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 4.49 |
ROIC/WACC1.14
WACC9.87%
2.3 Liquidity
PRG has a Current Ratio of 2.82. This indicates that PRG is financially healthy and has no problem in meeting its short term obligations.
PRG has a Current ratio of 2.82. This is in the better half of the industry: PRG outperforms 76.36% of its industry peers.
A Quick Ratio of 2.82 indicates that PRG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.82, PRG is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.82 |
3. Growth
3.1 Past
PRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.04%, which is quite good.
The Earnings Per Share has been decreasing by -2.66% on average over the past years.
The Revenue has been growing slightly by 3.71% in the past year.
The Revenue has been decreasing by -9.00% on average over the past years.
EPS 1Y (TTM)9.04%
EPS 3Y-4.63%
EPS 5Y-2.66%
EPS Q2Q%16.88%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y-2.74%
Revenue growth 5Y-9%
Sales Q2Q%-1.82%
3.2 Future
The Earnings Per Share is expected to grow by 6.81% on average over the next years.
Based on estimates for the next years, PRG will show a small growth in Revenue. The Revenue will grow by 2.16% on average per year.
EPS Next Y0.64%
EPS Next 2Y4.22%
EPS Next 3Y11.45%
EPS Next 5Y6.81%
Revenue Next Year0.73%
Revenue Next 2Y0.68%
Revenue Next 3Y2.85%
Revenue Next 5Y2.16%
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
PRG is valuated cheaply with a Price/Earnings ratio of 7.66.
Based on the Price/Earnings ratio, PRG is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
PRG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
PRG is valuated cheaply with a Price/Forward Earnings ratio of 7.51.
69.09% of the companies in the same industry are more expensive than PRG, based on the Price/Forward Earnings ratio.
PRG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.66 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRG indicates a rather cheap valuation: PRG is cheaper than 94.55% of the companies listed in the same industry.
69.09% of the companies in the same industry are more expensive than PRG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.71 | ||
| EV/EBITDA | 0.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PRG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)11.98
PEG (5Y)N/A
EPS Next 2Y4.22%
EPS Next 3Y11.45%
5. Dividend
5.1 Amount
PRG has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.70, PRG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, PRG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of PRG is nicely growing with an annual growth rate of 39.80%!
PRG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)39.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PRG pays out 12.57% of its income as dividend. This is a sustainable payout ratio.
PRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP12.57%
EPS Next 2Y4.22%
EPS Next 3Y11.45%
27.73
-0.24 (-0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners100.96%
Inst Owner Change2.47%
Ins Owners1.85%
Ins Owner Change0%
Market Cap1.10B
Revenue(TTM)2.51B
Net Income(TTM)163.87M
Analysts74.55
Price Target39.78 (43.45%)
Short Float %4.92%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.48
Dividend Growth(5Y)39.8%
DP12.57%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.32%
Min EPS beat(2)20.49%
Max EPS beat(2)26.15%
EPS beat(4)4
Avg EPS beat(4)14.5%
Min EPS beat(4)3.54%
Max EPS beat(4)26.15%
EPS beat(8)7
Avg EPS beat(8)11.66%
EPS beat(12)11
Avg EPS beat(12)20.63%
EPS beat(16)13
Avg EPS beat(16)15.31%
Revenue beat(2)2
Avg Revenue beat(2)1.37%
Min Revenue beat(2)0.53%
Max Revenue beat(2)2.21%
Revenue beat(4)3
Avg Revenue beat(4)0.83%
Min Revenue beat(4)-0.13%
Max Revenue beat(4)2.21%
Revenue beat(8)7
Avg Revenue beat(8)1.06%
Revenue beat(12)11
Avg Revenue beat(12)1.17%
Revenue beat(16)11
Avg Revenue beat(16)0.35%
PT rev (1m)1.11%
PT rev (3m)1.11%
EPS NQ rev (1m)-8.75%
EPS NQ rev (3m)-8.55%
EPS NY rev (1m)1.63%
EPS NY rev (3m)8.44%
Revenue NQ rev (1m)-1.99%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.66 | ||
| Fwd PE | 7.51 | ||
| P/S | 0.44 | ||
| P/FCF | 3.71 | ||
| P/OCF | 3.59 | ||
| P/B | 1.56 | ||
| P/tB | 3.17 | ||
| EV/EBITDA | 0.75 |
EPS(TTM)3.62
EY13.05%
EPS(NY)3.69
Fwd EY13.32%
FCF(TTM)7.48
FCFY26.96%
OCF(TTM)7.72
OCFY27.85%
SpS63.41
BVpS17.79
TBVpS8.74
PEG (NY)11.98
PEG (5Y)N/A
Graham Number38.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.6% | ||
| ROE | 23.29% | ||
| ROCE | 15.85% | ||
| ROIC | 11.22% | ||
| ROICexc | 14.17% | ||
| ROICexgc | 21.29% | ||
| OM | 8.88% | ||
| PM (TTM) | 6.54% | ||
| GM | N/A | ||
| FCFM | 11.79% |
ROA(3y)9.65%
ROA(5y)7.86%
ROE(3y)23.71%
ROE(5y)20.15%
ROIC(3y)11.83%
ROIC(5y)13.95%
ROICexc(3y)13.13%
ROICexc(5y)15.3%
ROICexgc(3y)19.8%
ROICexgc(5y)24.01%
ROCE(3y)16.72%
ROCE(5y)19.71%
ROICexgc growth 3Y-17.04%
ROICexgc growth 5Y1.01%
ROICexc growth 3Y-13.9%
ROICexc growth 5Y4.64%
OM growth 3Y-10.82%
OM growth 5Y1.88%
PM growth 3Y-4.16%
PM growth 5Y58.6%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 2.01 | ||
| Debt/EBITDA | 0.32 | ||
| Cap/Depr | 0.59% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 5.94 | ||
| Cash Conversion | 16.29% | ||
| Profit Quality | 180.42% | ||
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.82 | ||
| Altman-Z | 4.49 |
F-Score6
WACC9.87%
ROIC/WACC1.14
Cap/Depr(3y)0.55%
Cap/Depr(5y)1%
Cap/Sales(3y)0.37%
Cap/Sales(5y)0.81%
Profit Quality(3y)147.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.04%
EPS 3Y-4.63%
EPS 5Y-2.66%
EPS Q2Q%16.88%
EPS Next Y0.64%
EPS Next 2Y4.22%
EPS Next 3Y11.45%
EPS Next 5Y6.81%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y-2.74%
Revenue growth 5Y-9%
Sales Q2Q%-1.82%
Revenue Next Year0.73%
Revenue Next 2Y0.68%
Revenue Next 3Y2.85%
Revenue Next 5Y2.16%
EBIT growth 1Y5.18%
EBIT growth 3Y-13.27%
EBIT growth 5Y-7.29%
EBIT Next Year34.49%
EBIT Next 3Y14.42%
EBIT Next 5Y9.81%
FCF growth 1Y21.8%
FCF growth 3Y-18.03%
FCF growth 5Y-10.3%
OCF growth 1Y21.24%
OCF growth 3Y-17.42%
OCF growth 5Y-15.27%
PROG HOLDINGS INC / PRG FAQ
Can you provide the ChartMill fundamental rating for PROG HOLDINGS INC?
ChartMill assigns a fundamental rating of 6 / 10 to PRG.
What is the valuation status for PRG stock?
ChartMill assigns a valuation rating of 7 / 10 to PROG HOLDINGS INC (PRG). This can be considered as Undervalued.
How profitable is PROG HOLDINGS INC (PRG) stock?
PROG HOLDINGS INC (PRG) has a profitability rating of 6 / 10.
What is the valuation of PROG HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PROG HOLDINGS INC (PRG) is 7.66 and the Price/Book (PB) ratio is 1.56.
How sustainable is the dividend of PROG HOLDINGS INC (PRG) stock?
The dividend rating of PROG HOLDINGS INC (PRG) is 5 / 10 and the dividend payout ratio is 12.57%.