PROG HOLDINGS INC (PRG) Stock Fundamental Analysis
NYSE:PRG - New York Stock Exchange, Inc. - US74319R1014 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PRG. PRG was compared to 53 industry peers in the Consumer Finance industry. PRG has only an average score on both its financial health and profitability. PRG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PRG was profitable.
PRG had a positive operating cash flow in the past year.
PRG had positive earnings in 4 of the past 5 years.
In the past 5 years PRG always reported a positive cash flow from operatings.
1.2 Ratios
PRG's Return On Assets of 13.03% is amongst the best of the industry. PRG outperforms 94.34% of its industry peers.
The Return On Equity of PRG (30.33%) is better than 90.57% of its industry peers.
PRG has a Return On Invested Capital of 11.25%. This is amongst the best in the industry. PRG outperforms 86.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRG is above the industry average of 8.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 30.33% | ||
| ROIC | 11.25% |
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 (8.01%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PRG has grown nicely.
PRG has a Operating Margin (8.83%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PRG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.83% | ||
| PM (TTM) | 8.01% | ||
| 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.
The number of shares outstanding for PRG has been reduced compared to 1 year ago.
Compared to 5 years ago, PRG has less shares outstanding
The debt/assets ratio for PRG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.23 indicates that PRG is not in any danger for bankruptcy at the moment.
PRG's Altman-Z score of 4.23 is amongst the best of the industry. PRG outperforms 94.34% of its industry peers.
PRG has a debt to FCF ratio of 4.94. This is a neutral value as PRG would need 4.94 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.94, PRG is doing good in the industry, outperforming 67.92% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that PRG is somewhat dependend on debt financing.
PRG has a Debt to Equity ratio of 0.99. This is comparable to the rest of the industry: PRG outperforms 58.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 4.94 | ||
| Altman-Z | 4.23 |
ROIC/WACC1.48
WACC7.58%
2.3 Liquidity
PRG has a Current Ratio of 1.61. This is a normal value and indicates that PRG is financially healthy and should not expect problems in meeting its short term obligations.
PRG's Current ratio of 1.61 is fine compared to the rest of the industry. PRG outperforms 62.26% of its industry peers.
PRG has a Quick Ratio of 1.61. This is a normal value and indicates that PRG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PRG (1.61) is better than 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
PRG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.74%.
The Earnings Per Share has been decreasing by -2.66% on average over the past years.
Looking at the last year, PRG shows a small growth in Revenue. The Revenue has grown by 2.29% in the last year.
Measured over the past years, PRG shows a decrease in Revenue. The Revenue has been decreasing by -9.00% on average per year.
EPS 1Y (TTM)-1.74%
EPS 3Y-4.63%
EPS 5Y-2.66%
EPS Q2Q%-1.1%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y-2.74%
Revenue growth 5Y-9%
Sales Q2Q%6.58%
3.2 Future
PRG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.95% yearly.
Based on estimates for the next years, PRG will show a small growth in Revenue. The Revenue will grow by 3.48% on average per year.
EPS Next Y-0.87%
EPS Next 2Y8.11%
EPS Next 3Y12.24%
EPS Next 5Y9.95%
Revenue Next Year3.55%
Revenue Next 2Y4.4%
Revenue Next 3Y3.76%
Revenue Next 5Y3.48%
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
A Price/Earnings ratio of 7.29 indicates a rather cheap valuation of PRG.
Based on the Price/Earnings ratio, PRG is valued a bit cheaper than the industry average as 71.70% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PRG to the average of the S&P500 Index (28.64), we can say PRG is valued rather cheaply.
The Price/Forward Earnings ratio is 6.22, which indicates a rather cheap valuation of PRG.
79.25% of the companies in the same industry are more expensive than PRG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, PRG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 6.22 |
4.2 Price Multiples
PRG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PRG is cheaper than 94.34% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PRG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.71 | ||
| EV/EBITDA | 0.83 |
4.3 Compensation for Growth
PRG has a very decent profitability rating, which may justify a higher PE ratio.
PRG's earnings are expected to grow with 12.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.11%
EPS Next 3Y12.24%
5. Dividend
5.1 Amount
PRG has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
The stock price of PRG dropped by -41.48% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.83, PRG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.52, PRG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of PRG grows each year by 39.80%, which is quite nice.
PRG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)39.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
10.34% of the earnings are spent on dividend by PRG. This is a low number and sustainable payout ratio.
The dividend of PRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP10.34%
EPS Next 2Y8.11%
EPS Next 3Y12.24%
24.73
-1.86 (-7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners102.58%
Inst Owner Change-0.12%
Ins Owners1.52%
Ins Owner Change11.17%
Market Cap1.00B
Analysts78.18
Price Target40.46 (63.61%)
Short Float %4.23%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0.48
Dividend Growth(5Y)39.8%
DP10.34%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.13%
Min EPS beat(2)-3.27%
Max EPS beat(2)3.54%
EPS beat(4)3
Avg EPS beat(4)8.81%
Min EPS beat(4)-3.27%
Max EPS beat(4)25.61%
EPS beat(8)7
Avg EPS beat(8)18.91%
EPS beat(12)10
Avg EPS beat(12)16.21%
EPS beat(16)13
Avg EPS beat(16)16.34%
Revenue beat(2)2
Avg Revenue beat(2)0.79%
Min Revenue beat(2)0.73%
Max Revenue beat(2)0.85%
Revenue beat(4)4
Avg Revenue beat(4)1.14%
Min Revenue beat(4)0.34%
Max Revenue beat(4)2.64%
Revenue beat(8)8
Avg Revenue beat(8)1.31%
Revenue beat(12)9
Avg Revenue beat(12)0.51%
Revenue beat(16)10
Avg Revenue beat(16)0.34%
PT rev (1m)0%
PT rev (3m)-21.21%
EPS NQ rev (1m)-2.69%
EPS NQ rev (3m)-16.62%
EPS NY rev (1m)-13.9%
EPS NY rev (3m)-13.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 6.22 | ||
| P/S | 0.41 | ||
| P/FCF | 7.71 | ||
| P/OCF | 7.25 | ||
| P/B | 1.54 | ||
| P/tB | 3.58 | ||
| EV/EBITDA | 0.83 |
EPS(TTM)3.39
EY13.71%
EPS(NY)3.97
Fwd EY16.07%
FCF(TTM)3.21
FCFY12.97%
OCF(TTM)3.41
OCFY13.8%
SpS60.68
BVpS16.02
TBVpS6.91
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 30.33% | ||
| ROCE | 15.9% | ||
| ROIC | 11.25% | ||
| ROICexc | 12.1% | ||
| ROICexgc | 17.23% | ||
| OM | 8.83% | ||
| PM (TTM) | 8.01% | ||
| GM | N/A | ||
| FCFM | 5.29% |
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%
ROICexcg growth 3Y-17.04%
ROICexcg 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-Score7
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 4.94 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 0.5% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | 5.88 | ||
| Cash Conversion | 7.42% | ||
| Profit Quality | 66.01% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 4.23 |
F-Score7
WACC7.58%
ROIC/WACC1.48
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)-1.74%
EPS 3Y-4.63%
EPS 5Y-2.66%
EPS Q2Q%-1.1%
EPS Next Y-0.87%
EPS Next 2Y8.11%
EPS Next 3Y12.24%
EPS Next 5Y9.95%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y-2.74%
Revenue growth 5Y-9%
Sales Q2Q%6.58%
Revenue Next Year3.55%
Revenue Next 2Y4.4%
Revenue Next 3Y3.76%
Revenue Next 5Y3.48%
EBIT growth 1Y-8.64%
EBIT growth 3Y-13.27%
EBIT growth 5Y-7.29%
EBIT Next Year37.7%
EBIT Next 3Y18.61%
EBIT Next 5Y11.48%
FCF growth 1Y-33.1%
FCF growth 3Y-18.03%
FCF growth 5Y-10.3%
OCF growth 1Y-32.17%
OCF growth 3Y-17.42%
OCF growth 5Y-15.27%