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Market Cap

US$1.9b

Last Updated

2021/09/22 00:16 UTC

Data Sources

Company Financials +

Executive Summary

PRA Group, Inc., a services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas, Australia, and Europe. More Details


Snowflake Analysis

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PRAA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PRAA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.7%

PRAA

1.6%

US Consumer Finance

-1.8%

US Market


1 Year Return

1.8%

PRAA

82.4%

US Consumer Finance

31.5%

US Market

Return vs Industry: PRAA underperformed the US Consumer Finance industry which returned 80% over the past year.

Return vs Market: PRAA underperformed the US Market which returned 33% over the past year.


Shareholder returns

PRAAIndustryMarket
7 Day1.7%1.6%-1.8%
30 Day1.8%0.8%-0.9%
90 Day6.3%-1.7%0.8%
1 Year1.8%1.8%86.1%82.4%33.5%31.5%
3 Year11.5%11.5%52.1%43.8%57.5%47.8%
5 Year25.4%25.4%144.9%123.6%119.1%95.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PRAA ($41.35) is trading above our estimate of fair value ($29.81)

Significantly Below Fair Value: PRAA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PRAA is poor value based on its PE Ratio (10.2x) compared to the US Consumer Finance industry average (7.7x).

PE vs Market: PRAA is good value based on its PE Ratio (10.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: PRAA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PRAA is good value based on its PB Ratio (1.3x) compared to the US Consumer Finance industry average (1.5x).


Future Growth

How is PRA Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRAA's earnings are forecast to decline over the next 3 years (-7.6% per year).

Earnings vs Market: PRAA's earnings are forecast to decline over the next 3 years (-7.6% per year).

High Growth Earnings: PRAA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PRAA's revenue is expected to decline over the next 3 years (-4% per year).

High Growth Revenue: PRAA's revenue is forecast to decline over the next 3 years (-4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRAA's Return on Equity is forecast to be low in 3 years time (11.9%).


Past Performance

How has PRA Group performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRAA has high quality earnings.

Growing Profit Margin: PRAA's current net profit margins (16.7%) are higher than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: PRAA's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: PRAA's earnings growth over the past year (44.3%) exceeds its 5-year average (7% per year).

Earnings vs Industry: PRAA earnings growth over the past year (44.3%) underperformed the Consumer Finance industry 126.5%.


Return on Equity

High ROE: PRAA's Return on Equity (14%) is considered low.


Financial Health

How is PRA Group's financial position?


Financial Position Analysis

Short Term Liabilities: PRAA's short term assets ($3.5B) exceed its short term liabilities ($257.8M).

Long Term Liabilities: PRAA's short term assets ($3.5B) exceed its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: PRAA's debt to equity ratio (165.2%) is considered high.

Reducing Debt: PRAA's debt to equity ratio has reduced from 204.7% to 165.2% over the past 5 years.

Debt Coverage: PRAA's debt is not well covered by operating cash flow (1.7%).

Interest Coverage: PRAA's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Dividend

What is PRA Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if PRAA'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 PRAA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Kevin Stevenson (56 yo)

4.25yrs

Tenure

US$5,536,378

Compensation

Mr. Kevin P. Stevenson co-founded PRA Group, Inc. (Formerly known as Portfolio Recovery Associates, Inc.) in 1996 and has been its President since August 2016 and Chief Executive Officer since June 1, 2017...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD5.54M) is above average for companies of similar size in the US market ($USD3.70M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PRAA's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: PRAA's board of directors are considered experienced (6.1 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PRA Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PRA Group, Inc.
  • Ticker: PRAA
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$1.895b
  • Shares outstanding: 45.84m
  • Website: https://www.pragroup.com

Number of Employees


Location

  • PRA Group, Inc.
  • 120 Corporate Boulevard
  • Norfolk
  • Virginia
  • 23502
  • United States

Listings


Biography

PRA Group, Inc., a services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas, Australia, and Europe. It is involved in the purchase of accou...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:16
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.