Pra Group Inc

Finance
Finance: Consumer Services
www.pragroup.com

Earnings Score
Moat Score
Safety Score

Market Cap $794.33M
PE 18
Debt $3.30B
Cash $142.43M
EV $3.95B
FCF -$120.25M

Earnings

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Sales & Net Margins

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Earnings	$43.36M
EBIT	$291.13M
ROE	3%
ROA	6%
FCF	-$120.25M
Equity	$1.28B
Growth Stability	-56%
PE	18.32
PEG	-1.1
PB	0.62
P/FCF	-6.61
P/S	0.76
Price/Cash	0.18
Debt/Equity	2.57
Debt/FCF	-27.41
Net Margins	6%
Op. Margins	28%
Earnings CAGR	-5%
Sales Growth YoY	30%
Sales Growth QoQ	-1%
Sales CAGR	1%
FCF CAGR	-4%
Equity CAGR	4%
Earnings Stability	0.05
Earnings Growth YoY	-321%

Earnings Growth QoQ	26%
Earnings CAGR 5Y	-17%
Sales CAGR 5Y	-4%
FCF CAGR 5Y	-10%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	-5%
Sales CAGR 3Y	-5%
FCF CAGR 3Y	-5%
Equity CAGR 3Y	-2%
Market Cap	$794.33M
Revenue	$1.04B
Assets	$4.94B
Total Debt	$3.30B
Cash	$142.43M
Shares Outstanding	39.21M
EV	3.95B
Earnings Score	6%
Moat Score	63%
Safety Score	31%
Final Score	33%
Shares Growth 3y	-1%
Equity Growth QoQ	7%
Equity Growth YoY	8%

Assets & ROA

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Stockholders Equity & ROE

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PRA Group Inc is a company that primarily acquires, collects, and processes nonperforming loans in the Americas and Europe. The accounts acquired by the company are unpaid obligations of individuals owed to credit grantors, which primarily include banks and other types of consumer, retail, and auto finance companies It acquires portfolios of nonperforming loans in two categories: Core and Insolvency. The company generates the majority of its sales from the United States.

SEC Filings

Direct access to Pra Group Inc (PRAA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Pra Group Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Pra Group Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -5%

Stability 5%

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Pra Group Inc Discounted Cash Flow

Fully customizable DCF calculator online for Pra Group Inc.

Years

Calculation mode

= -$906M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$120M	-$115M	-$110M	-$106M	-$101M	-$97M	-$93M	-$89M	-$85M	-$81M	-$78M	-$778M
DCF		-$105M	-$91M	-$79M	-$69M	-$60M	-$52M	-$45M	-$40M	-$34M	-$30M	-$300M
Value	-$906M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	20%	18%	10%	20%	7%	8%	14%	17%	12%	-10%	6%
ROA	-	11%	7%	7%	5%	6%	8%	9%	7%	2%	6%
ROE	-	20%	9%	14%	6%	7%	11%	14%	9%	-7%	3%

Bad Net Margins (6.35%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	10.01	20.42	-98.66	40.99	24.35	21.38	35.39	299.11	-29.02	-27.41
Debt over Equity	1.64	2.05	1.98	1.91	2.2	2.29	1.94	1.97	1.94	2.35	2.57
Growth Stability	-	-	-	100%	47%	83%	100%	100%	84%	-56%	-56%

Good Debt/FCF ratio (-27.41)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Bad Debt/Equity ratio (2.57)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (-56%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	7%	-12%	-2%	12%	12%	5%	3%	-12%	-17%	-4%
Earnings YoY growth	-	-5%	-49%	91%	-60%	31%	73%	23%	-36%	-171%	-17%
Equity YoY growth	-	-7%	9%	24%	-1%	9%	12%	-4%	-3%	-4%	-1%
FCF YoY growth	-	-28%	-48%	-125%	-374%	91%	8%	-41%	-89%	-1K%	-10%