ASX:PGL

Stock Analysis Report

Executive Summary

Prospa Group Limited, a financial technology company, operates as an online lender in Australia.

Snowflake

Fundamentals

High growth potential with worrying balance sheet.


Similar Companies

Share Price & News

How has Prospa Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

PGL

-5.2%

AU Consumer Finance

0.4%

AU Market


1 Year Return

n/a

PGL

52.8%

AU Consumer Finance

9.8%

AU Market

Return vs Industry: Insufficient data to determine how PGL performed against the Australian Consumer Finance industry.

Return vs Market: Insufficient data to determine how PGL performed against the Australian Market.


Shareholder returns

PGLIndustryMarket
7 Day-1.0%-5.2%0.4%
30 Day-11.6%3.7%-1.3%
90 Day7.2%14.5%-0.5%
1 Yearn/a58.0%52.8%16.1%9.8%
3 Yearn/a37.1%23.4%36.1%17.9%
5 Yearn/a59.5%24.6%49.4%15.7%

Price Volatility Vs. Market

How volatile is Prospa Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Prospa Group undervalued compared to its fair value and its price relative to the market?

4.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PGL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PGL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PGL is unprofitable, so we can't compare its PE Ratio to the Consumer Finance industry average.

PE vs Market: PGL is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PGL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PGL is overvalued based on its PB Ratio (4.3x) compared to the AU Consumer Finance industry average (1.8x).


Next Steps

Future Growth

How is Prospa Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

84.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: PGL is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: PGL's loss is forecast to worsen by 0% next year.

Revenue vs Market: PGL's revenue (32.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: PGL's revenue (32.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGL's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has Prospa Group performed over the past 5 years?

-1280.6%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PGL is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

Accelerating Growth: Unable to compare PGL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PGL is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (15.9%).


Return on Equity

High ROE: PGL has a negative Return on Equity (-16.48%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PGL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PGL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Prospa Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PGL has a low level of unsold assets or inventory.

Debt Coverage by Assets: PGL's debt is covered by short term assets (assets are 1.458670x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PGL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PGL is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -70.2% per year.


Financial Institutions Analysis

Asset Level: PGL's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PGL has a sufficient allowance for bad loans.

Low Risk Liabilities: PGL reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PGL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PGL has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PGL has an appropriate level of bad loans.


Next Steps

Dividend

What is Prospa Group's current dividend yield, its reliability and sustainability?

0.64%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage3.5%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate PGL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PGL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if PGL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PGL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PGL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Prospa Group's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average board tenure


CEO

Gregory Moshal 0

0yrs

Tenure

0

Mr. Gregory Moshal, also known as Greg, is a Co-Founder of Prospa Group Limited and serves as its Joint Chief Executive Officer. Mr. Moshal has been an Executive Director of Prospa Group Limited since Apri ...


Board Age and Tenure

1.6yrs

Average Tenure

Experienced Board: PGL's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$5,000,00214 Jun 19
Martin Moshal
EntityIndividual
Shares52,092,763
Max PriceAU$3.78

Ownership Breakdown


Management Team

  • Ed Bigazzi

    Chief Financial Officer

    • Tenure: 0yrs
  • Richard Miller

    Chief Technology Officer

    • Tenure: 0yrs
  • Gregory Moshal

    Joint CEO & Executive Director

    • Tenure: 0yrs
  • Beau Bertoli

    Joint CEO & Executive Director

    • Tenure: 0yrs
  • Ben Lamb

    Chief Operating Officer

    • Tenure: 0yrs
  • Damon Pezaro

    Chief Product Officer

    • Tenure: 0yrs
  • Matt Bauld

    General Manager of Sales & Business Development

    • Tenure: 0yrs
  • Emma Robinson

    Chief Marketing Officer

    • Tenure: 0yrs
  • Elise Ward

    General Manager of People & Culture

    • Tenure: 0yrs

Board Members

  • Greg Ruddock

    Independent Non-Executive Chairman

    • Tenure: 1.6yrs
  • Avi Eyal

    Non-Executive Director

    • Tenure: 7.8yrs
  • Fiona Trafford-Walker

    Independent Non-Executive Director

    • Tenure: 1.6yrs
  • Gail Pemberton (66yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
  • Gregory Moshal

    Joint CEO & Executive Director

    • Tenure: 0yrs
  • Beau Bertoli

    Joint CEO & Executive Director

    • Tenure: 0yrs

Company Information

Prospa Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prospa Group Limited
  • Ticker: PGL
  • Exchange: ASX
  • Founded: 2012
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: AU$645.267m
  • Shares outstanding: 160.51m
  • Website: https://www.prospa.com

Number of Employees


Location

  • Prospa Group Limited
  • 4-16 Yurong Street
  • Level 1
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PGLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2019
PGLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2019

Biography

Prospa Group Limited, a financial technology company, operates as an online lender in Australia. The company offers amortizing term loans to fund small businesses’ working capital and growth initiatives, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:42
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.