company background image
PRAA

PRA GroupNasdaqGS:PRAA Stock Report

Market Cap

US$1.9b

7D

0.3%

1Y

6.5%

Updated

24 Sep, 2021

Data

Company Financials +
PRAA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends0/6

PRAA Overview

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

PRA Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PRA Group
Historical stock prices
Current Share PriceUS$40.87
52 Week HighUS$32.78
52 Week LowUS$45.52
Beta1.41
1 Month Change0.39%
3 Month Change3.23%
1 Year Change6.49%
3 Year Change13.53%
5 Year Change18.33%
Change since IPO693.59%

Recent News & Updates

Shareholder Returns

PRAAUS Consumer FinanceUS Market
7D0.3%4.0%-0.5%
1Y6.5%96.9%37.5%

Return vs Industry: PRAA underperformed the US Consumer Finance industry which returned 96.9% over the past year.

Return vs Market: PRAA underperformed the US Market which returned 37.5% over the past year.

Price Volatility

Is PRAA's price volatile compared to industry and market?
PRAA volatility
PRAA Beta1.41
Industry Beta1.5
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
19963,676Kevin Stevensonhttps://www.pragroup.com

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 accounts that are primarily the unpaid obligations of individuals owed to credit originators, which include banks and other types of consumer, retail, and auto finance companies. The company also acquires nonperforming loans, including Visa and MasterCard credit cards, private label and other credit cards, installment loans, lines of credit, deficiency balances of various types, legal judgments, and trade payables from banks, credit unions, consumer finance companies, retailers, utilities, automobile finance companies, and other credit originators.

PRA Group Fundamentals Summary

How do PRA Group's earnings and revenue compare to its market cap?
PRAA fundamental statistics
Market CapUS$1.87b
Earnings (TTM)US$186.69m
Revenue (TTM)US$1.12b

10.0x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRAA income statement (TTM)
RevenueUS$1.12b
Cost of RevenueUS$0
Gross ProfitUS$1.12b
ExpensesUS$930.13m
EarningsUS$186.69m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 08, 2021

Earnings per share (EPS)4.07
Gross Margin100.00%
Net Profit Margin16.72%
Debt/Equity Ratio165.2%

How did PRAA perform over the long term?

See historical performance and comparison

Valuation

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

10.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PRAA ($40.87) is trading above our estimate of fair value ($29.6)

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 (10x) compared to the US Consumer Finance industry average (7.9x).

PE vs Market: PRAA is good value based on its PE Ratio (10x) compared to the US market (17.9x).


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 (1.7x).


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 ($USD5.54M) is above average for companies of similar size in the US market ($USD3.67M).

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 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$1.866b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 22:17
End of Day Share Price2021/09/24 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.