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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
PRAA had positive earnings in the past year.
In the past year PRAA has reported a negative cash flow from operations.
PRAA had positive earnings in 4 of the past 5 years.
In multiple years PRAA reported negative operating cash flow during the last 5 years.
1.2 Ratios
PRAA has a Return On Assets of 1.43%. This is comparable to the rest of the industry: PRAA outperforms 46.15% of its industry peers.
Looking at the Return On Equity, with a value of 6.22%, PRAA is doing worse than 65.38% of the companies in the same industry.
PRAA's Return On Invested Capital of 5.81% is fine compared to the rest of the industry. PRAA outperforms 69.23% of its industry peers.
PRAA had an Average Return On Invested Capital over the past 3 years of 4.53%. This is below the industry average of 9.28%.
The 3 year average ROIC (4.53%) for PRAA is below the current ROIC(5.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 6.22% | ||
| ROIC | 5.81% |
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
PRAA has a Profit Margin of 6.33%. This is in the lower half of the industry: PRAA underperforms 65.38% of its industry peers.
In the last couple of years the Profit Margin of PRAA has declined.
PRAA's Operating Margin of 30.48% is amongst the best of the industry. PRAA outperforms 88.46% of its industry peers.
PRAA's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 79.98%, 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 | 30.48% | ||
| PM (TTM) | 6.33% | ||
| GM | 79.98% |
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.
The number of shares outstanding for PRAA has been increased compared to 1 year ago.
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 1.97. 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.
The Altman-Z score of PRAA (1.97) is better than 69.23% of its industry peers.
PRAA has a Debt/Equity ratio of 3.07. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PRAA (3.07) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACC0.83
WACC7.02%
2.3 Liquidity
A Current Ratio of 20.69 indicates that PRAA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 20.69, PRAA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 20.69 indicates that PRAA has no problem at all paying its short term obligations.
PRAA has a better Quick ratio (20.69) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 20.69 | ||
| Quick Ratio | 20.69 |
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.
The Revenue has grown by 38.87% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 1.85% on average over the past years.
EPS 1Y (TTM)430.26%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%0%
Revenue 1Y (TTM)38.87%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%35.69%
3.2 Future
PRAA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.50% yearly.
The Revenue is expected to grow by 6.41% on average over the next years.
EPS Next Y34.17%
EPS Next 2Y23.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.24%
Revenue Next 2Y6.41%
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.
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
A Price/Earnings ratio of 7.51 indicates a rather cheap valuation of PRAA.
Based on the Price/Earnings ratio, PRAA is valued a bit cheaper than the industry average as 71.15% of the companies are valued more expensively.
PRAA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.12.
Based on the Price/Forward Earnings ratio of 4.92, the valuation of PRAA can be described as very cheap.
Based on the Price/Forward Earnings ratio, PRAA is valued cheaper than 84.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRAA to the average of the S&P500 Index (20.42), we can say PRAA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.51 | ||
| Fwd PE | 4.92 |
4.2 Price Multiples
78.85% 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 | 11.2 |
4.3 Compensation for Growth
PRAA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PRAA's earnings are expected to grow with 23.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y23.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRAA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.44
-0.25 (-1.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners98.9%
Inst Owner Change1.34%
Ins Owners1.09%
Ins Owner Change13.62%
Market Cap531.01M
Analysts78
Price Target27.2 (102.38%)
Short Float %1.5%
Short Ratio1.63
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)2
Avg EPS beat(2)57.76%
Min EPS beat(2)4.13%
Max EPS beat(2)111.4%
EPS beat(4)4
Avg EPS beat(4)232.56%
Min EPS beat(4)4.13%
Max EPS beat(4)541.71%
EPS beat(8)7
Avg EPS beat(8)76.52%
EPS beat(12)11
Avg EPS beat(12)63.06%
EPS beat(16)15
Avg EPS beat(16)56.68%
Revenue beat(2)2
Avg Revenue beat(2)4.74%
Min Revenue beat(2)4.23%
Max Revenue beat(2)5.25%
Revenue beat(4)2
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-16.53%
Max Revenue beat(4)5.25%
Revenue beat(8)5
Avg Revenue beat(8)-4.99%
Revenue beat(12)7
Avg Revenue beat(12)-2.77%
Revenue beat(16)10
Avg Revenue beat(16)-1.18%
PT rev (1m)-5.43%
PT rev (3m)-3.33%
EPS NQ rev (1m)-9.7%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)0%
EPS NY rev (3m)14.44%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.51 | ||
| Fwd PE | 4.92 | ||
| P/S | 0.48 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.47 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 11.2 |
EPS(TTM)1.79
EY13.32%
EPS(NY)2.73
Fwd EY20.31%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)-2.39
OCFYN/A
SpS28.21
BVpS28.73
TBVpS18.7
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 6.22% | ||
| ROCE | 7.19% | ||
| ROIC | 5.81% | ||
| ROICexc | 5.94% | ||
| ROICexgc | 6.6% | ||
| OM | 30.48% | ||
| PM (TTM) | 6.33% | ||
| GM | 79.98% | ||
| 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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 9.96 | ||
| Cap/Depr | 37.48% | ||
| Cap/Sales | 0.36% | ||
| Interest Coverage | 1.52 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 20.69 | ||
| Quick Ratio | 20.69 | ||
| Altman-Z | 1.97 |
F-Score5
WACC7.02%
ROIC/WACC0.83
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 Y34.17%
EPS Next 2Y23.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)38.87%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%35.69%
Revenue Next Year7.24%
Revenue Next 2Y6.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y221.32%
EBIT growth 3Y-3.24%
EBIT growth 5Y4.57%
EBIT Next Year21.43%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.02%
OCF growth 3YN/A
OCF growth 5YN/A