PROG HOLDINGS INC (PRG) Stock Fundamental Analysis
NYSE:PRG - New York Stock Exchange, Inc. - US74319R1014 - Common Stock - Currency: USD
Overall PRG gets a fundamental rating of 6 out of 10. We evaluated PRG against 52 industry peers in the Consumer Finance industry. While PRG has a great health rating, its profitability is only average at the moment. 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.
In the past year PRG had a positive cash flow from operations.
PRG had positive earnings in 4 of the past 5 years.
PRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRG has a Return On Assets of 14.29%. This is amongst the best in the industry. PRG outperforms 96.15% of its industry peers.
Looking at the Return On Equity, with a value of 32.09%, PRG belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.65%, PRG belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
PRG had an Average Return On Invested Capital over the past 3 years of 11.83%. This is in line with the industry average of 10.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.29% | ||
| ROE | 32.09% | ||
| ROIC | 11.65% |
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
With a Profit Margin value of 8.38%, PRG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PRG has grown nicely.
PRG has a Operating Margin (8.62%) 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 | 8.62% | ||
| PM (TTM) | 8.38% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PRG is creating some value.
Compared to 1 year ago, PRG has less shares outstanding
The number of shares outstanding for PRG has been reduced compared to 5 years ago.
PRG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.65 indicates that PRG is not in any danger for bankruptcy at the moment.
PRG has a better Altman-Z score (4.65) than 94.23% of its industry peers.
PRG has a debt to FCF ratio of 2.90. This is a good value and a sign of high solvency as PRG would need 2.90 years to pay back of all of its debts.
PRG's Debt to FCF ratio of 2.90 is fine compared to the rest of the industry. PRG outperforms 75.00% of its industry peers.
PRG has a Debt/Equity ratio of 0.91. This is a neutral value indicating PRG is somewhat dependend on debt financing.
PRG has a Debt to Equity ratio of 0.91. This is in the better half of the industry: PRG outperforms 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 4.65 |
ROIC/WACC1.43
WACC8.17%
2.3 Liquidity
PRG has a Current Ratio of 2.11. This indicates that PRG is financially healthy and has no problem in meeting its short term obligations.
PRG has a Current ratio of 2.11. This is in the better half of the industry: PRG outperforms 73.08% of its industry peers.
PRG has a Quick Ratio of 2.11. This indicates that PRG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PRG (2.11) is better than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
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%.
PRG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.66% yearly.
PRG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
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)4.62%
Revenue growth 3Y-2.74%
Revenue growth 5Y-9%
Sales Q2Q%6.58%
3.2 Future
Based on estimates for the next years, PRG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.83% on average per year.
The Revenue is expected to grow by 2.58% on average over the next years.
EPS Next Y-7.19%
EPS Next 2Y4.13%
EPS Next 3Y10.4%
EPS Next 5Y9.83%
Revenue Next Year0.81%
Revenue Next 2Y2.53%
Revenue Next 3Y1.97%
Revenue Next 5Y2.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 8.88, the valuation of PRG can be described as reasonable.
Based on the Price/Earnings ratio, PRG is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
PRG is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.16 indicates a reasonable valuation of PRG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRG indicates a somewhat cheap valuation: PRG is cheaper than 65.38% of the companies listed in the same industry.
PRG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 8.16 |
4.2 Price Multiples
PRG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PRG is cheaper than 94.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRG indicates a somewhat cheap valuation: PRG is cheaper than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.94 | ||
| EV/EBITDA | 0.84 |
4.3 Compensation for Growth
PRG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.13%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
PRG has a Yearly Dividend Yield of 1.64%.
PRG's Dividend Yield is a higher than the industry average which is at 3.55.
PRG's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
The dividend of PRG is nicely growing with an annual growth rate of 39.80%!
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
PRG pays out 9.73% 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.
DP9.73%
EPS Next 2Y4.13%
EPS Next 3Y10.4%
30.1
+0.25 (+0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners102.28%
Inst Owner Change0%
Ins Owners1.82%
Ins Owner Change21.21%
Market Cap1.21B
Analysts78.18
Price Target37.4 (24.25%)
Short Float %4.55%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend0.48
Dividend Growth(5Y)39.8%
DP9.73%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.69%
Min EPS beat(2)3.54%
Max EPS beat(2)7.84%
EPS beat(4)3
Avg EPS beat(4)8.43%
Min EPS beat(4)-3.27%
Max EPS beat(4)25.61%
EPS beat(8)7
Avg EPS beat(8)16.07%
EPS beat(12)11
Avg EPS beat(12)19.1%
EPS beat(16)13
Avg EPS beat(16)14.81%
Revenue beat(2)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-0.13%
Max Revenue beat(2)0.73%
Revenue beat(4)3
Avg Revenue beat(4)1.02%
Min Revenue beat(4)-0.13%
Max Revenue beat(4)2.64%
Revenue beat(8)7
Avg Revenue beat(8)1.18%
Revenue beat(12)9
Avg Revenue beat(12)0.68%
Revenue beat(16)9
Avg Revenue beat(16)-0.15%
PT rev (1m)0%
PT rev (3m)-15.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 8.16 | ||
| P/S | 0.48 | ||
| P/FCF | 5.94 | ||
| P/OCF | 5.71 | ||
| P/B | 1.86 | ||
| P/tB | 4.21 | ||
| EV/EBITDA | 0.84 |
EPS(TTM)3.39
EY11.26%
EPS(NY)3.69
Fwd EY12.25%
FCF(TTM)5.07
FCFY16.84%
OCF(TTM)5.27
OCFY17.51%
SpS62.1
BVpS16.22
TBVpS7.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.29% | ||
| ROE | 32.09% | ||
| ROCE | 16.46% | ||
| ROIC | 11.65% | ||
| ROICexc | 13.91% | ||
| ROICexgc | 21.13% | ||
| OM | 8.62% | ||
| PM (TTM) | 8.38% | ||
| GM | N/A | ||
| FCFM | 8.16% |
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-Score9
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 2.9 | ||
| Debt/EBITDA | 0.31 | ||
| Cap/Depr | 0.49% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 5.79 | ||
| Cash Conversion | 11.25% | ||
| Profit Quality | 97.4% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 4.65 |
F-Score9
WACC8.17%
ROIC/WACC1.43
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-7.19%
EPS Next 2Y4.13%
EPS Next 3Y10.4%
EPS Next 5Y9.83%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y-2.74%
Revenue growth 5Y-9%
Sales Q2Q%6.58%
Revenue Next Year0.81%
Revenue Next 2Y2.53%
Revenue Next 3Y1.97%
Revenue Next 5Y2.58%
EBIT growth 1Y-1.4%
EBIT growth 3Y-13.27%
EBIT growth 5Y-7.29%
EBIT Next Year29.94%
EBIT Next 3Y16.27%
EBIT Next 5Y9.89%
FCF growth 1Y-30.09%
FCF growth 3Y-18.03%
FCF growth 5Y-10.3%
OCF growth 1Y-29.47%
OCF growth 3Y-17.42%
OCF growth 5Y-15.27%