NasdaqGS:PRGX

Stock Analysis Report

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Executive Summary

PRGX Global, Inc., together with its subsidiaries, provides recovery audit services to businesses having payment transactions and procurement environments worldwide. More Details

Rewards

Trading at 89.8% below our estimate of its fair value

Earnings are forecast to grow 132.04% per year

Risk Analysis

No risks detected for PRGX from our risk checks.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has PRGX Global's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PRGX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

PRGX

-3.4%

US IT

-1.1%

US Market


1 Year Return

5.8%

PRGX

22.0%

US IT

15.0%

US Market

Return vs Industry: PRGX underperformed the US IT industry which returned 23.1% over the past year.

Return vs Market: PRGX underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

PRGXIndustryMarket
7 Day2.4%-3.4%-1.1%
30 Day4.1%-1.0%2.9%
90 Day-5.4%1.0%5.7%
1 Year5.8%5.8%23.3%22.0%17.6%15.0%
3 Year-31.5%-31.5%84.1%77.0%38.9%29.7%
5 Year36.7%36.7%144.4%124.8%78.4%58.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PRGX Global undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRGX ($5.07) is trading below our estimate of fair value ($49.59)

Significantly Below Fair Value: PRGX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRGX is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PRGX is good value based on its PB Ratio (2.4x) compared to the US IT industry average (3.8x).


Next Steps

Future Growth

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

132.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRGX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: PRGX's revenue (0.8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: PRGX's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PRGX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PRGX Global performed over the past 5 years?

-58.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRGX is currently unprofitable.

Growing Profit Margin: PRGX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRGX is unprofitable, and losses have increased over the past 5 years at a rate of 58.8% per year.

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

Earnings vs Industry: PRGX is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (8.1%).


Return on Equity

High ROE: PRGX has a negative Return on Equity (-18.42%), as it is currently unprofitable.


Next Steps

Financial Health

How is PRGX Global's financial position?


Financial Position Analysis

Short Term Liabilities: PRGX's short term assets ($62.0M) exceed its short term liabilities ($26.4M).

Long Term Liabilities: PRGX's short term assets ($62.0M) exceed its long term liabilities ($44.7M).


Debt to Equity History and Analysis

Debt Level: PRGX's debt to equity ratio (72%) is considered high.

Reducing Debt: Insufficient data to determine if PRGX'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 PRGX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PRGX is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 38.2% per year.


Next Steps

Dividend

What is PRGX Global current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PRGX'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 PRGX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PRGX'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 PRGX'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?

1.8yrs

Average management tenure


CEO

Ron Stewart (65 yo)

6.92yrs

Tenure

US$625,000

Compensation

Mr. Ronald E. Stewart, also known as Ron, has been the Chief Executive Officer and President of PRGX Global, Inc. since December 13, 2013. Mr. Stewart is a Partner at Arcadia Capital Group. Mr. Stewart foc ...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD625.00K) is about average for companies of similar size in the US market ($USD585.94K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Owens
Executive Chairman of the Board1.75yrsUS$1.20m0.39%
$ 470.2k
Ronald Stewart
President6.92yrsUS$625.00k1.59%
$ 1.9m
Kurt Abkemeier
Executive VP1.75yrsUS$2.14m0.029%
$ 34.8k
James Fisher
Chief Information Officer2.42yrsno datano data
Victor Allums
Senior VP14.42yrsUS$641.68k0.63%
$ 754.5k
Anis Hadj-Taieb
Vice President of Global Sales1.08yrsno datano data
Carol O'Kelley
Chief Marketing Officer1.75yrsno datano data
Lynn Howard
Chief Human Resources Officer1.42yrsno datano data
Mathias Herzog
Managing Director of Business Analytics and Advisory Services Group8.83yrsno datano data
John Heighway
Managing Director of Commercial & Contract Compliance for Europe3.08yrsno datano data
Rick Cosgrove
Managing Director of Commercial for North America1.92yrsno datano data
Tony Massanelli
Senior Vice President of Commercial Operations1.5yrsno datano data

1.8yrs

Average Tenure

61yo

Average Age

Experienced Management: PRGX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gregory Owens
Executive Chairman of the Board1.75yrsUS$1.20m0.39%
$ 470.2k
Ronald Stewart
President6.92yrsUS$625.00k1.59%
$ 1.9m
Joseph Whitters
Independent Lead Director1.75yrsUS$190.56k0.77%
$ 915.9k
Mylle Bell Mangum
Independent Director7.75yrsUS$177.50k0.087%
$ 104.7k
Kevin Costello
Independent Director3.58yrsUS$184.65k0.30%
$ 364.3k
Matthew Drapkin
Independent Director3.92yrsUS$165.00k0.11%
$ 132.0k
William Kimble
Independent Director5.5yrsUS$184.82k0.13%
$ 161.3k

3.9yrs

Average Tenure

60yo

Average Age

Experienced Board: PRGX's board of directors are considered experienced (3.9 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

PRGX Global, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PRGX Global, Inc.
  • Ticker: PRGX
  • Exchange: NasdaqGS
  • Founded: 1970
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$119.716m
  • Shares outstanding: 23.61m
  • Website: https://www.prgx.com

Number of Employees


Location

  • PRGX Global, Inc.
  • 600 Galleria Parkway
  • Suite 100
  • Atlanta
  • Georgia
  • 30339-5949
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRGXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1996
PFYADB (Deutsche Boerse AG)YesCommon StockDEEURMar 1996

Biography

PRGX Global, Inc., together with its subsidiaries, provides recovery audit services to businesses having payment transactions and procurement environments worldwide. The company operates through three segm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 00:04
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.