PRA GROUP INC (PRAA) Stock Fundamental Analysis
NASDAQ:PRAA - Nasdaq - US69354N1063 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PRAA. PRAA was compared to 53 industry peers in the Consumer Finance industry. PRAA has only an average score on both its financial health and profitability. PRAA has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years PRAA 4 years were profitable.
In multiple years PRAA reported negative operating cash flow during the last 5 years.
1.2 Ratios
PRAA has a Return On Assets (1.37%) which is in line with its industry peers.
With a Return On Equity value of 5.81%, PRAA is not doing good in the industry: 62.26% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 5.64%, PRAA is doing good in the industry, outperforming 67.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PRAA is significantly below the industry average of 10.47%.
The last Return On Invested Capital (5.64%) for PRAA is above the 3 year average (4.53%), which is a sign of increasing profitability.
| 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 comparable to the rest of the industry.
PRAA's Profit Margin has declined in the last couple of years.
PRAA's Operating Margin of 30.83% is amongst the best of the industry. PRAA outperforms 88.68% of its industry peers.
In the last couple of years the Operating Margin of PRAA has grown nicely.
PRAA's Gross Margin of 80.15% is fine compared to the rest of the industry. PRAA outperforms 75.47% of its industry peers.
PRAA's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for PRAA has been increased compared to 1 year ago.
The number of shares outstanding for PRAA has been reduced compared to 5 years ago.
The debt/assets ratio for PRAA is higher compared to a year ago.
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 71.70% 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.
Looking at the Debt to Equity ratio, with a value of 3.00, PRAA is in line with its industry, outperforming 45.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.79
WACC7.18%
2.3 Liquidity
A Current Ratio of 27.31 indicates that PRAA has no problem at all paying its short term obligations.
PRAA has a better Current ratio (27.31) 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 has a Quick ratio of 27.31. This is amongst the best in 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 2277.55% over the past year.
PRAA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.19% yearly.
PRAA shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.87%.
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)2277.55%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%100%
Revenue 1Y (TTM)38.87%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%24.36%
3.2 Future
PRAA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.90% yearly.
The Revenue is expected to grow by 4.80% on average over the next years.
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 6.61, the valuation of PRAA can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PRAA indicates a somewhat cheap valuation: PRAA is cheaper than 73.58% of the companies listed in the same industry.
PRAA is valuated cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.88, which indicates a rather cheap valuation of PRAA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRAA indicates a somewhat cheap valuation: PRAA is cheaper than 69.81% of the companies listed in the same industry.
PRAA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.61 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRAA is valued a bit cheaper than 67.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.53 |
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
No dividends for PRAA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.41
-0.25 (-1.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners99.44%
Inst Owner Change-0.53%
Ins Owners1.08%
Ins Owner Change20.23%
Market Cap611.16M
Analysts78
Price Target26.18 (69.89%)
Short Float %2.12%
Short Ratio1.91
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)0%
PT rev (3m)-12.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-39.27%
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 | 6.61 | ||
| Fwd PE | 6.88 | ||
| P/S | 0.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.5 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 11.53 |
EPS(TTM)2.33
EY15.12%
EPS(NY)2.24
Fwd EY14.55%
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
WACC7.18%
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)2277.55%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%100%
EPS Next Y-18.51%
EPS Next 2Y11.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)38.87%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%24.36%
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 Year8.6%
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