PROG HOLDINGS INC (PRG)
US74319R1014 - Common Stock
Overall PRG gets a fundamental rating of 6 out of 10. We evaluated PRG against 51 industry peers in the Consumer Finance industry. While PRG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PRG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PRG had positive earnings in the past year.
PRG had a positive operating cash flow in the past year.
PRG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years PRG had a positive operating cash flow.
1.2 Ratios
PRG has a better Return On Assets (9.31%) than 94.12% of its industry peers.
PRG has a better Return On Equity (23.48%) than 90.20% of its industry peers.
PRG has a better Return On Invested Capital (12.69%) than 92.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRG is significantly above the industry average of 6.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 23.48% | ||
| ROIC | 12.69% |
ROA(3y)10.31%
ROA(5y)5.45%
ROE(3y)25.54%
ROE(5y)14.44%
ROIC(3y)13.24%
ROIC(5y)13.18%
1.3 Margins
PRG's Profit Margin of 5.77% is in line compared to the rest of the industry. PRG outperforms 45.10% of its industry peers.
In the last couple of years the Profit Margin of PRG has grown nicely.
PRG has a Operating Margin (9.89%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PRG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.89% | ||
| PM (TTM) | 5.77% | ||
| GM | N/A |
OM growth 3Y-5.25%
OM growth 5Y5.41%
PM growth 3YN/A
PM growth 5Y2.38%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
PRG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PRG has less shares outstanding
PRG has less shares outstanding than it did 5 years ago.
PRG has a worse debt/assets ratio than last year.
2.2 Solvency
PRG has an Altman-Z score of 4.35. This indicates that PRG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.35, PRG belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
The Debt to FCF ratio of PRG is 3.04, which is a good value as it means it would take PRG, 3.04 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.04, PRG is doing good in the industry, outperforming 74.51% of the companies in the same industry.
A Debt/Equity ratio of 1.00 is on the high side and indicates that PRG has dependencies on debt financing.
PRG has a Debt to Equity ratio of 1.00. This is in the better half of the industry: PRG outperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 4.35 |
ROIC/WACC1.61
WACC7.88%
2.3 Liquidity
PRG has a Current Ratio of 1.27. This is a normal value and indicates that PRG is financially healthy and should not expect problems in meeting its short term obligations.
PRG has a Current ratio (1.27) which is comparable to the rest of the industry.
A Quick Ratio of 1.27 indicates that PRG should not have too much problems paying its short term obligations.
PRG has a Quick ratio of 1.27. This is comparable to the rest of the industry: PRG outperforms 54.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
PRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.85%, which is quite impressive.
The Earnings Per Share has been growing slightly by 1.67% on average over the past years.
Looking at the last year, PRG shows a decrease in Revenue. The Revenue has decreased by -7.30% in the last year.
Measured over the past years, PRG shows a decrease in Revenue. The Revenue has been decreasing by -8.86% on average per year.
EPS 1Y (TTM)39.85%
EPS 3Y-8.6%
EPS 5Y1.67%
EPS growth Q2Q-14.29%
Revenue 1Y (TTM)-7.3%
Revenue growth 3Y-1.03%
Revenue growth 5Y-8.86%
Revenue growth Q2Q-5.67%
3.2 Future
PRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.38% yearly.
Based on estimates for the next years, PRG will show a small growth in Revenue. The Revenue will grow by 1.29% on average per year.
EPS Next Y-20.8%
EPS Next 2Y-5.24%
EPS Next 3Y-0.41%
EPS Next 5Y4.38%
Revenue Next Year-2.98%
Revenue Next 2Y-0.87%
Revenue Next 3Y1.01%
Revenue Next 5Y1.29%
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 9.77, the valuation of PRG can be described as very reasonable.
PRG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PRG to the average of the S&P500 Index (25.25), we can say PRG is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.34, PRG is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as PRG.
PRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 12.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRG indicates a rather cheap valuation: PRG is cheaper than 94.12% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PRG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.94 | ||
| EV/EBITDA | 1.01 |
4.3 Compensation for Growth
The decent profitability rating of PRG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.85
EPS Next 2Y-5.24%
EPS Next 3Y-0.41%
5. Dividend
5.1 Amount
PRG has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
PRG's Dividend Yield is comparable with the industry average which is at 4.32.
Compared to the average S&P500 Dividend Yield of 2.45, PRG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
PRG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-5.24%
EPS Next 3Y-0.41%
PROG HOLDINGS INC
NYSE:PRG (4/24/2024, 6:25:31 PM)
After market: 35.1522 -0.51 (-1.42%)35.66
+2.89 (+8.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 12.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)5.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 23.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.89% | ||
| PM (TTM) | 5.77% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)39.85%
EPS 3Y-8.6%
EPS 5Y
EPS growth Q2Q
EPS Next Y-20.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.3%
Revenue growth 3Y-1.03%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y