ASX:PGL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

High growth potential with adequate 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

Stable Share Price: PGL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.0%

PGL

12.6%

AU Consumer Finance

4.0%

AU Market


1 Year Return

n/a

PGL

-13.1%

AU Consumer Finance

-16.5%

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 Day6.0%12.6%4.0%
30 Day-59.2%-31.2%-15.4%
90 Day-73.5%-41.3%-23.5%
1 Yearn/a-11.3%-13.1%-12.8%-16.5%
3 Yearn/a-27.3%-33.8%-0.9%-14.5%
5 Yearn/a-37.1%-49.0%11.2%-13.9%

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?

0.56x

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 good value based on its PB Ratio (0.6x) compared to the AU Consumer Finance industry average (1x).


Next Steps

Future Growth

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

118.2%

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 (1.1%).

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

High Growth Earnings: PGL's is expected to become profitable in the next 3 years.

Revenue vs Market: PGL's revenue (26% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: PGL's revenue (26% 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 (0.4%).


Next Steps

Past Performance

How has Prospa Group performed over the past 5 years?

-68.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGL is currently unprofitable.

Growing Profit Margin: PGL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PGL is unprofitable, and losses have increased over the past 5 years at a rate of -68.8% per year.

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 (14.1%).


Return on Equity

High ROE: PGL has a negative Return on Equity (-13.97%), as it is currently unprofitable.


Next Steps

Financial Health

How is Prospa Group's financial position?


Financial Position Analysis

Short Term Liabilities: PGL's short term assets (A$540.7M) exceed its short term liabilities (A$74.5M).

Long Term Liabilities: PGL's short term assets (A$540.7M) exceed its long term liabilities (A$342.8M).


Debt to Equity History and Analysis

Debt Level: PGL's debt to equity ratio (263%) is considered high.

Reducing Debt: Insufficient data to determine if PGL's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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 -20% per year.


Next Steps

Dividend

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

1.03%

Forecast Dividend Yield


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average board tenure


CEO

Greg Moshal

no data

Tenure

Mr. Gregory Moshal, also known as Greg, is a Co-Founder of Prospa Group Limited and serves as its Chief Executive Officer. Mr. Moshal served as Joint Chief Executive Officer of Prospa Group Limited. Mr. Mo ...


Board Members

NamePositionTenureCompensationOwnership
Gregory Moshal
CEO & Executive Directorno datano data15.37% A$12.9m
Beaumont Bertoli
CEO & Executive Directorno datano data6.05% A$5.1m
Gregory Ruddock
Independent Director4.5yrsno data0.70% A$589.5k
Aviad Eyal
Non-Executive Director1.92yrsno data1.71% A$1.4m
Fiona Trafford-Walker
Independent Non-Executive Director1.92yrsno data0.021% A$17.2k
Gail Pemberton
Independent Chairmanno datano data0.14% A$118.1k

2.0yrs

Average Tenure

Experienced Board: PGL's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PGL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: PGL only recently listed within the past 12 months, with total shares outstanding growing by 374.2% in the past year..


Top Shareholders

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$83.821m
  • Shares outstanding: 161.20m
  • 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, as well as business lines of credit. It serves building and trade, hospitality, professional service, and retail industries. The company was founded in 2012 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 10:53
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
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.