PROG HOLDINGS INC (PRG) Stock Fundamental Analysis
NYSE:PRG - New York Stock Exchange, Inc. - US74319R1014 - Common Stock - Currency: USD
Taking everything into account, PRG scores 6 out of 10 in our fundamental rating. PRG was compared to 52 industry peers in the Consumer Finance industry. PRG has an excellent financial health rating, but there are some minor concerns on its profitability. PRG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PRG was profitable.
In the past year PRG had a positive cash flow from operations.
Of the past 5 years PRG 4 years were profitable.
In the past 5 years PRG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PRG (14.29%) is better than 96.15% of its industry peers.
The Return On Equity of PRG (32.09%) is better than 92.31% of its industry peers.
PRG has a Return On Invested Capital of 11.65%. This is amongst the best in the industry. PRG outperforms 80.77% of its industry peers.
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 10.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.29% | ||
| ROE | 32.09% | ||
| ROIC | 11.65% |
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 has a Profit Margin (8.38%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PRG has grown nicely.
PRG has a Operating Margin (8.62%) 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 | 8.62% | ||
| PM (TTM) | 8.38% | ||
| 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.
PRG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PRG has been reduced compared to 5 years ago.
PRG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.62 indicates that PRG is not in any danger for bankruptcy at the moment.
PRG has a Altman-Z score of 4.62. This is amongst the best in the industry. PRG outperforms 94.23% of its industry peers.
PRG has a debt to FCF ratio of 2.90. This is a good value and a sign of high solvency as PRG would need 2.90 years to pay back of all of its debts.
PRG has a Debt to FCF ratio of 2.90. This is in the better half of the industry: PRG outperforms 75.00% of its industry peers.
PRG has a Debt/Equity ratio of 0.91. This is a neutral value indicating PRG is somewhat dependend on debt financing.
PRG has a better Debt to Equity ratio (0.91) than 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 4.62 |
ROIC/WACC1.47
WACC7.91%
2.3 Liquidity
PRG has a Current Ratio of 2.11. This indicates that PRG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.11, PRG is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
PRG has a Quick Ratio of 2.11. This indicates that PRG is financially healthy and has no problem in meeting its short term obligations.
PRG has a better Quick ratio (2.11) than 71.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
The earnings per share for PRG have decreased by -1.74% in the last year.
PRG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.66% yearly.
The Revenue has been growing slightly by 4.62% in the past year.
PRG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.00% yearly.
EPS 1Y (TTM)-1.74%
EPS 3Y-4.63%
EPS 5Y-2.66%
EPS Q2Q%-1.1%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y-2.74%
Revenue growth 5Y-9%
Sales Q2Q%6.58%
3.2 Future
The Earnings Per Share is expected to grow by 9.95% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y-7.19%
EPS Next 2Y4.13%
EPS Next 3Y10.4%
EPS Next 5Y9.95%
Revenue Next Year0.81%
Revenue Next 2Y2.53%
Revenue Next 3Y1.97%
Revenue Next 5Y3.48%
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
With a Price/Earnings ratio of 8.58, the valuation of PRG can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of PRG indicates a somewhat cheap valuation: PRG is cheaper than 67.31% of the companies listed in the same industry.
PRG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.52.
Based on the Price/Forward Earnings ratio of 7.89, the valuation of PRG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRG indicates a somewhat cheap valuation: PRG is cheaper than 63.46% of the companies listed in the same industry.
PRG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
94.23% of the companies in the same industry are more expensive than PRG, based on the Enterprise Value to EBITDA ratio.
PRG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.74 | ||
| EV/EBITDA | 0.82 |
4.3 Compensation for Growth
The decent profitability rating of PRG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.13%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
PRG has a Yearly Dividend Yield of 1.72%.
Compared to an average industry Dividend Yield of 4.37, PRG pays a bit more dividend than its industry peers.
PRG's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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
PRG pays out 9.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of PRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.73%
EPS Next 2Y4.13%
EPS Next 3Y10.4%
29.09
+0.03 (+0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners102.58%
Inst Owner Change-1.53%
Ins Owners1.52%
Ins Owner Change21.21%
Market Cap1.17B
Analysts78.18
Price Target37.4 (28.57%)
Short Float %6.01%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend0.48
Dividend Growth(5Y)39.8%
DP9.73%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.69%
Min EPS beat(2)3.54%
Max EPS beat(2)7.84%
EPS beat(4)3
Avg EPS beat(4)8.43%
Min EPS beat(4)-3.27%
Max EPS beat(4)25.61%
EPS beat(8)7
Avg EPS beat(8)16.07%
EPS beat(12)11
Avg EPS beat(12)19.1%
EPS beat(16)13
Avg EPS beat(16)14.81%
Revenue beat(2)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-0.13%
Max Revenue beat(2)0.73%
Revenue beat(4)3
Avg Revenue beat(4)1.02%
Min Revenue beat(4)-0.13%
Max Revenue beat(4)2.64%
Revenue beat(8)7
Avg Revenue beat(8)1.18%
Revenue beat(12)9
Avg Revenue beat(12)0.68%
Revenue beat(16)9
Avg Revenue beat(16)-0.15%
PT rev (1m)-7.56%
PT rev (3m)-33.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.13%
EPS NY rev (1m)-6.38%
EPS NY rev (3m)-19.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.99%
Revenue NY rev (1m)-2.65%
Revenue NY rev (3m)-5.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 7.89 | ||
| P/S | 0.47 | ||
| P/FCF | 5.74 | ||
| P/OCF | 5.52 | ||
| P/B | 1.79 | ||
| P/tB | 4.07 | ||
| EV/EBITDA | 0.82 |
EPS(TTM)3.39
EY11.65%
EPS(NY)3.69
Fwd EY12.67%
FCF(TTM)5.07
FCFY17.43%
OCF(TTM)5.27
OCFY18.12%
SpS62.1
BVpS16.22
TBVpS7.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.29% | ||
| ROE | 32.09% | ||
| ROCE | 16.46% | ||
| ROIC | 11.65% | ||
| ROICexc | 13.91% | ||
| ROICexgc | 21.13% | ||
| OM | 8.62% | ||
| PM (TTM) | 8.38% | ||
| GM | N/A | ||
| FCFM | 8.16% |
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-Score9
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 2.9 | ||
| Debt/EBITDA | 0.31 | ||
| Cap/Depr | 0.49% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 5.79 | ||
| Cash Conversion | 11.25% | ||
| Profit Quality | 97.4% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 4.62 |
F-Score9
WACC7.91%
ROIC/WACC1.47
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)-1.74%
EPS 3Y-4.63%
EPS 5Y-2.66%
EPS Q2Q%-1.1%
EPS Next Y-7.19%
EPS Next 2Y4.13%
EPS Next 3Y10.4%
EPS Next 5Y9.95%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y-2.74%
Revenue growth 5Y-9%
Sales Q2Q%6.58%
Revenue Next Year0.81%
Revenue Next 2Y2.53%
Revenue Next 3Y1.97%
Revenue Next 5Y3.48%
EBIT growth 1Y-1.4%
EBIT growth 3Y-13.27%
EBIT growth 5Y-7.29%
EBIT Next Year29.94%
EBIT Next 3Y16.27%
EBIT Next 5Y11.48%
FCF growth 1Y-30.09%
FCF growth 3Y-18.03%
FCF growth 5Y-10.3%
OCF growth 1Y-29.47%
OCF growth 3Y-17.42%
OCF growth 5Y-15.27%