PROG HOLDINGS INC (PRG) Stock Fundamental Analysis
NYSE:PRG - US74319R1014 - Common Stock
35.24 USD
+0.25 (+0.71%)
35.24 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PRG. PRG was compared to 54 industry peers in the Consumer Finance industry. While PRG has a great health rating, its profitability is only average at the moment. 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.
PRG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRG has a better Return On Assets (14.76%) than 96.30% of its industry peers.
PRG has a Return On Equity of 32.11%. This is amongst the best in the industry. PRG outperforms 94.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.72%, PRG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
PRG had an Average Return On Invested Capital over the past 3 years of 11.83%. This is in line with the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.76% | ||
| ROE | 32.11% | ||
| ROIC | 11.72% |
ROA(3y)9.65%
ROA(5y)7.86%
ROE(3y)23.71%
ROE(5y)20.15%
ROIC(3y)11.83%
ROIC(5y)13.95%
1.3 Margins
PRG's Profit Margin of 8.53% is in line compared to the rest of the industry. PRG outperforms 48.15% of its industry peers.
In the last couple of years the Profit Margin of PRG has grown nicely.
PRG has a Operating Margin (8.67%) which is comparable to the rest of the industry.
PRG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.67% | ||
| PM (TTM) | 8.53% | ||
| GM | N/A |
OM growth 3Y-10.82%
OM growth 5Y1.88%
PM growth 3Y-4.16%
PM growth 5Y58.6%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PRG is creating some value.
The number of shares outstanding for PRG has been reduced compared to 1 year ago.
Compared to 5 years ago, PRG has less shares outstanding
The debt/assets ratio for PRG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.93 indicates that PRG is not in any danger for bankruptcy at the moment.
PRG has a better Altman-Z score (4.93) than 94.44% of its industry peers.
The Debt to FCF ratio of PRG is 2.71, which is a good value as it means it would take PRG, 2.71 years of fcf income to pay off all of its debts.
PRG's Debt to FCF ratio of 2.71 is fine compared to the rest of the industry. PRG outperforms 79.63% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that PRG is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.89, PRG is doing good in the industry, outperforming 64.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 4.93 |
ROIC/WACC1.41
WACC8.32%
2.3 Liquidity
A Current Ratio of 2.43 indicates that PRG has no problem at all paying its short term obligations.
The Current ratio of PRG (2.43) is better than 75.93% of its industry peers.
A Quick Ratio of 2.43 indicates that PRG has no problem at all paying its short term obligations.
PRG has a Quick ratio of 2.43. This is in the better half of the industry: PRG outperforms 75.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.16% over the past year.
PRG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.66% yearly.
PRG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.18%.
The Revenue has been decreasing by -9.00% on average over the past years.
EPS 1Y (TTM)1.16%
EPS 3Y-4.63%
EPS 5Y-2.66%
EPS Q2Q%10.87%
Revenue 1Y (TTM)5.18%
Revenue growth 3Y-2.74%
Revenue growth 5Y-9%
Sales Q2Q%2.11%
3.2 Future
Based on estimates for the next years, PRG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.87% on average per year.
The Revenue is expected to grow by 2.56% on average over the next years.
EPS Next Y-0.97%
EPS Next 2Y4.82%
EPS Next 3Y9.13%
EPS Next 5Y9.87%
Revenue Next Year0.89%
Revenue Next 2Y2.22%
Revenue Next 3Y3.57%
Revenue Next 5Y2.56%
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
Based on the Price/Earnings ratio of 10.10, the valuation of PRG can be described as reasonable.
Based on the Price/Earnings ratio, PRG is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.08. PRG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.43, the valuation of PRG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRG is on the same level as its industry peers.
PRG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 9.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRG is valued cheaper than 94.44% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRG indicates a somewhat cheap valuation: PRG is cheaper than 62.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.36 | ||
| EV/EBITDA | 0.93 |
4.3 Compensation for Growth
PRG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.82%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
PRG has a Yearly Dividend Yield of 1.46%.
PRG's Dividend Yield is comparable with the industry average which is at 4.17.
Compared to the average S&P500 Dividend Yield of 2.35, PRG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
On average, the dividend of PRG grows each year by 39.80%, which is quite nice.
PRG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)39.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
9.54% of the earnings are spent on dividend by PRG. This is a low number and sustainable payout ratio.
PRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.54%
EPS Next 2Y4.82%
EPS Next 3Y9.13%
35.24
+0.25 (+0.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners105.53%
Inst Owner Change-3.11%
Ins Owners1.85%
Ins Owner Change0.42%
Market Cap1.39B
Analysts74.55
Price Target39.34 (11.63%)
Short Float %5.32%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend0.48
Dividend Growth(5Y)39.8%
DP9.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17%
Min EPS beat(2)7.84%
Max EPS beat(2)26.15%
EPS beat(4)3
Avg EPS beat(4)8.56%
Min EPS beat(4)-3.27%
Max EPS beat(4)26.15%
EPS beat(8)7
Avg EPS beat(8)14.32%
EPS beat(12)11
Avg EPS beat(12)19.36%
EPS beat(16)13
Avg EPS beat(16)14.27%
Revenue beat(2)1
Avg Revenue beat(2)1.04%
Min Revenue beat(2)-0.13%
Max Revenue beat(2)2.21%
Revenue beat(4)3
Avg Revenue beat(4)0.91%
Min Revenue beat(4)-0.13%
Max Revenue beat(4)2.21%
Revenue beat(8)7
Avg Revenue beat(8)1.15%
Revenue beat(12)10
Avg Revenue beat(12)0.97%
Revenue beat(16)10
Avg Revenue beat(16)0%
PT rev (1m)4.25%
PT rev (3m)5.19%
EPS NQ rev (1m)1.37%
EPS NQ rev (3m)-9.14%
EPS NY rev (1m)6.7%
EPS NY rev (3m)6.7%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-5.78%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 9.43 | ||
| P/S | 0.55 | ||
| P/FCF | 6.36 | ||
| P/OCF | 6.13 | ||
| P/B | 2.08 | ||
| P/tB | 4.54 | ||
| EV/EBITDA | 0.93 |
EPS(TTM)3.49
EY9.9%
EPS(NY)3.74
Fwd EY10.6%
FCF(TTM)5.54
FCFY15.72%
OCF(TTM)5.75
OCFY16.31%
SpS63.69
BVpS16.91
TBVpS7.76
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.76% | ||
| ROE | 32.11% | ||
| ROCE | 16.57% | ||
| ROIC | 11.72% | ||
| ROICexc | 14.1% | ||
| ROICexgc | 21.46% | ||
| OM | 8.67% | ||
| PM (TTM) | 8.53% | ||
| GM | N/A | ||
| FCFM | 8.7% |
ROA(3y)9.65%
ROA(5y)7.86%
ROE(3y)23.71%
ROE(5y)20.15%
ROIC(3y)11.83%
ROIC(5y)13.95%
ROICexc(3y)13.13%
ROICexc(5y)15.3%
ROICexgc(3y)19.8%
ROICexgc(5y)24.01%
ROCE(3y)16.72%
ROCE(5y)19.71%
ROICexcg growth 3Y-17.04%
ROICexcg growth 5Y1.01%
ROICexc growth 3Y-13.9%
ROICexc growth 5Y4.64%
OM growth 3Y-10.82%
OM growth 5Y1.88%
PM growth 3Y-4.16%
PM growth 5Y58.6%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 2.71 | ||
| Debt/EBITDA | 0.31 | ||
| Cap/Depr | 0.49% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 5.84 | ||
| Cash Conversion | 12% | ||
| Profit Quality | 102% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.43 | ||
| Altman-Z | 4.93 |
F-Score8
WACC8.32%
ROIC/WACC1.41
Cap/Depr(3y)0.55%
Cap/Depr(5y)1%
Cap/Sales(3y)0.37%
Cap/Sales(5y)0.81%
Profit Quality(3y)147.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.16%
EPS 3Y-4.63%
EPS 5Y-2.66%
EPS Q2Q%10.87%
EPS Next Y-0.97%
EPS Next 2Y4.82%
EPS Next 3Y9.13%
EPS Next 5Y9.87%
Revenue 1Y (TTM)5.18%
Revenue growth 3Y-2.74%
Revenue growth 5Y-9%
Sales Q2Q%2.11%
Revenue Next Year0.89%
Revenue Next 2Y2.22%
Revenue Next 3Y3.57%
Revenue Next 5Y2.56%
EBIT growth 1Y0.36%
EBIT growth 3Y-13.27%
EBIT growth 5Y-7.29%
EBIT Next Year34.49%
EBIT Next 3Y14.42%
EBIT Next 5Y9.69%
FCF growth 1Y-22.76%
FCF growth 3Y-18.03%
FCF growth 5Y-10.3%
OCF growth 1Y-22.22%
OCF growth 3Y-17.42%
OCF growth 5Y-15.27%