PRA GROUP INC (PRAA) Stock Fundamental Analysis
USA - NASDAQ:PRAA - US69354N1063 - Common Stock
16.33 USD
+0.4 (+2.51%)
16.33 USD
0 (0%)
PRAA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Consumer Finance industry. PRAA has only an average score on both its financial health and profitability. PRAA has a correct valuation and a medium growth rate.
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.
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 (1.69%) which is in line with its industry peers.
The Return On Equity of PRAA (6.85%) is worse than 61.82% of its industry peers.
PRAA has a better Return On Invested Capital (5.30%) than 67.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRAA is significantly below the industry average of 11.61%.
The last Return On Invested Capital (5.30%) for PRAA is above the 3 year average (4.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 6.85% | ||
| ROIC | 5.3% |
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
Looking at the Profit Margin, with a value of 8.10%, PRAA is in line with its industry, outperforming 45.45% of the companies in the same industry.
PRAA's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 30.37%, PRAA belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
In the last couple of years the Operating Margin of PRAA has grown nicely.
PRAA's Gross Margin of 79.64% is fine compared to the rest of the industry. PRAA outperforms 72.73% of its industry peers.
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 | 30.37% | ||
| PM (TTM) | 8.1% | ||
| GM | 79.64% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRAA is destroying value.
PRAA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PRAA has been reduced compared to 5 years ago.
PRAA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.92 indicates that PRAA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of PRAA (1.92) is better than 72.73% of its industry peers.
PRAA has a Debt/Equity ratio of 2.83. This is a high value indicating a heavy dependency on external financing.
PRAA's Debt to Equity ratio of 2.83 is in line compared to the rest of the industry. PRAA outperforms 50.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.92 |
ROIC/WACC0.73
WACC7.21%
2.3 Liquidity
A Current Ratio of 24.69 indicates that PRAA has no problem at all paying its short term obligations.
PRAA's Current ratio of 24.69 is amongst the best of the industry. PRAA outperforms 100.00% of its industry peers.
PRAA has a Quick Ratio of 24.69. This indicates that PRAA is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PRAA (24.69) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 24.69 | ||
| Quick Ratio | 24.69 |
3. Growth
3.1 Past
PRAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.09%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.19% on average over the past years.
Looking at the last year, PRAA shows a quite strong growth in Revenue. The Revenue has grown by 11.41% in the last year.
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)29.09%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%-23.19%
Revenue 1Y (TTM)11.41%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%10.54%
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 9.98% yearly.
Based on estimates for the next years, PRAA will show a small growth in Revenue. The Revenue will grow by 6.49% on average per year.
EPS Next Y-2.84%
EPS Next 2Y9.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.74%
Revenue Next 2Y6.49%
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
With a Price/Earnings ratio of 11.50, the valuation of PRAA can be described as very reasonable.
PRAA's Price/Earnings ratio is in line with the industry average.
PRAA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 7.54 indicates a rather cheap valuation of PRAA.
Based on the Price/Forward Earnings ratio, PRAA is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PRAA to the average of the S&P500 Index (34.59), we can say PRAA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 7.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRAA is valued a bit cheaper than the industry average as 65.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRAA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.33
+0.4 (+2.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners101.48%
Inst Owner Change-2.28%
Ins Owners1.47%
Ins Owner Change6.91%
Market Cap638.01M
Revenue(TTM)1.16B
Net Income(TTM)91.64M
Analysts78
Price Target26.18 (60.32%)
Short Float %1.76%
Short Ratio2.39
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)0
Avg EPS beat(2)-53.26%
Min EPS beat(2)-80.05%
Max EPS beat(2)-26.47%
EPS beat(4)2
Avg EPS beat(4)2.25%
Min EPS beat(4)-80.05%
Max EPS beat(4)111.4%
EPS beat(8)6
Avg EPS beat(8)110.46%
EPS beat(12)9
Avg EPS beat(12)46.95%
EPS beat(16)13
Avg EPS beat(16)41.88%
Revenue beat(2)0
Avg Revenue beat(2)-13.72%
Min Revenue beat(2)-19.87%
Max Revenue beat(2)-7.57%
Revenue beat(4)2
Avg Revenue beat(4)-4.49%
Min Revenue beat(4)-19.87%
Max Revenue beat(4)5.25%
Revenue beat(8)4
Avg Revenue beat(8)-4.29%
Revenue beat(12)6
Avg Revenue beat(12)-5.17%
Revenue beat(16)8
Avg Revenue beat(16)-3.71%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.09%
EPS NY rev (1m)0%
EPS NY rev (3m)19.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 7.54 | ||
| P/S | 0.56 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.48 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 12.02 |
EPS(TTM)1.42
EY8.7%
EPS(NY)2.16
Fwd EY13.26%
FCF(TTM)-1.59
FCFYN/A
OCF(TTM)-1.47
OCFYN/A
SpS28.97
BVpS34.22
TBVpS22.97
PEG (NY)N/A
PEG (5Y)N/A
Graham Number33.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 6.85% | ||
| ROCE | 6.56% | ||
| ROIC | 5.3% | ||
| ROICexc | 5.43% | ||
| ROICexgc | 6.03% | ||
| OM | 30.37% | ||
| PM (TTM) | 8.1% | ||
| GM | 79.64% | ||
| 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%
ROICexgc growth 3Y-8.38%
ROICexgc 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-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.64 | ||
| Cap/Depr | 37.51% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 24.69 | ||
| Quick Ratio | 24.69 | ||
| Altman-Z | 1.92 |
F-Score4
WACC7.21%
ROIC/WACC0.73
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)29.09%
EPS 3Y-23.76%
EPS 5Y-1.19%
EPS Q2Q%-23.19%
EPS Next Y-2.84%
EPS Next 2Y9.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.41%
Revenue growth 3Y0.57%
Revenue growth 5Y1.85%
Sales Q2Q%10.54%
Revenue Next Year4.74%
Revenue Next 2Y6.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y37.88%
EBIT growth 3Y-3.24%
EBIT growth 5Y4.57%
EBIT Next Year7.62%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-162.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-231.01%
OCF growth 3YN/A
OCF growth 5YN/A
PRA GROUP INC / PRAA FAQ
What is the fundamental rating for PRAA stock?
ChartMill assigns a fundamental rating of 5 / 10 to PRAA.
Can you provide the valuation status for PRA GROUP INC?
ChartMill assigns a valuation rating of 4 / 10 to PRA GROUP INC (PRAA). This can be considered as Fairly Valued.
How profitable is PRA GROUP INC (PRAA) stock?
PRA GROUP INC (PRAA) has a profitability rating of 5 / 10.
What is the financial health of PRA GROUP INC (PRAA) stock?
The financial health rating of PRA GROUP INC (PRAA) is 5 / 10.