PRA GROUP INC (PRAA) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:PRAA - US69354N1063 - Common Stock

15.99 USD

+0.08 (+0.5%)

Last: 1/26/2026, 11:29:35 AM

Fundamental Rating

Taking everything into account, PRAA scores 4 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate.

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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.
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

With a Return On Assets value of -6.87%, PRAA is not doing good in the industry: 90.57% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -36.96%, PRAA is doing worse than 90.57% of the companies in the same industry.
PRAA has a Return On Invested Capital of 5.90%. This is in the better half of the industry: PRAA outperforms 60.38% 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 12.42%.
The last Return On Invested Capital (5.90%) for PRAA is above the 3 year average (4.53%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-6.87%
ROE	-36.96%
ROIC	5.9%

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

In the last couple of years the Profit Margin of PRAA has declined.
With an excellent Operating Margin value of 30.21%, PRAA belongs to the best of the industry, outperforming 83.02% 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 79.54%, PRAA is doing good in the industry, outperforming 73.58% 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	30.21%
PM (TTM)	N/A
GM	79.54%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, PRAA has a worse debt to assets ratio.

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.
With a decent Altman-Z score value of 1.97, PRAA is doing good in the industry, outperforming 73.58% of the companies in the same industry.
A Debt/Equity ratio of 4.04 is on the high side and indicates that PRAA has dependencies on debt financing.
With a Debt to Equity ratio value of 4.04, PRAA is not doing good in the industry: 60.38% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	4.04
Debt/FCF	N/A
Altman-Z	1.97

ROIC/WACC0.82

WACC7.2%

2.3 Liquidity

A Current Ratio of 24.03 indicates that PRAA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 24.03, PRAA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 24.03 indicates that PRAA has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 24.03, PRAA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	24.03
Quick Ratio	24.03

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 29.09% over the past year.
The Earnings Per Share has been decreasing by -1.19% on average over the past years.
PRAA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.41%.
The Revenue has been growing slightly by 1.85% on average over the past years.

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 11.90% yearly.
The Revenue is expected to grow by 7.41% on average over the next years.

EPS Next Y-598.03%

EPS Next 2Y11.9%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year7.42%

Revenue Next 2Y7.41%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 11.26 indicates a reasonable valuation of PRAA.
The rest of the industry has a similar Price/Earnings ratio as PRAA.
PRAA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 7.13 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 75.47% of the companies are valued more expensively.
PRAA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	11.26
Fwd PE	7.13

4.2 Price Multiples

PRAA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PRAA is cheaper than 64.15% of the companies in the same industry.