PRA GROUP INC (PRAA) Stock Fundamental Analysis
NASDAQ:PRAA - Nasdaq - US69354N1063 - Common Stock - Currency: USD
Overall PRAA gets a fundamental rating of 5 out of 10. We evaluated PRAA against 52 industry peers in the Consumer Finance industry. Both the profitability and the financial health of PRAA get a neutral evaluation. Nothing too spectacular is happening here. 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 has a Return On Assets (1.37%) which is in line with its industry peers.
The Return On Equity of PRAA (5.81%) is worse than 63.46% of its industry peers.
PRAA has a Return On Invested Capital of 5.64%. This is in the better half of the industry: PRAA outperforms 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
The Profit Margin of PRAA (6.27%) is worse than 61.54% of its industry peers.
PRAA's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 30.83%, PRAA belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
In the last couple of years the Operating Margin of PRAA has grown nicely.
With a decent Gross Margin value of 80.15%, PRAA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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
PRAA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PRAA has more shares outstanding
Compared to 5 years ago, PRAA has less shares outstanding
PRAA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.96 indicates that PRAA is not a great score, but indicates only limited risk for bankruptcy at the moment.
PRAA has a Altman-Z score of 1.96. This is in the better half of the industry: PRAA outperforms 71.15% of its industry peers.
A Debt/Equity ratio of 3.00 is on the high side and indicates that PRAA has dependencies on debt financing.
PRAA's Debt to Equity ratio of 3.00 is in line compared to the rest of the industry. PRAA outperforms 44.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.79
WACC7.14%
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.
PRAA's Quick ratio of 27.31 is amongst the best of the industry. PRAA outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 27.31 | ||
| Quick Ratio | 27.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 430.26% over the past year.
The Earnings Per Share has been decreasing by -1.19% on average over the past years.
The Revenue has grown by 25.03% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 11.90% on average over the next years. This is quite good.
PRAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.80% yearly.
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
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.
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 8.24, the valuation of PRAA can be described as reasonable.
PRAA's Price/Earnings ratio is a bit cheaper when compared to the industry. PRAA is cheaper than 71.15% of the companies in the same industry.
PRAA is valuated cheaply when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.58, the valuation of PRAA can be described as very cheap.
PRAA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PRAA is cheaper than 73.08% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRAA to the average of the S&P500 Index (21.27), we can say PRAA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 6.58 |
4.2 Price Multiples
69.23% 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 | 11.42 |
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 |
14.75
+0.07 (+0.48%)
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 Cap584.99M
Analysts78
Price Target25.84 (75.19%)
Short Float %2.84%
Short Ratio2.11
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 | 8.24 | ||
| Fwd PE | 6.58 | ||
| P/S | 0.52 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.48 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)1.79
EY12.14%
EPS(NY)2.24
Fwd EY15.2%
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
WACC7.14%
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