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PRA Group Inc (PRAA)

Upturn stock ratingUpturn stock rating
$23.21
Delayed price
Profit since last BUY2.61%
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Upturn Advisory Summary

02/12/2025: PRAA (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit -23.34%
Avg. Invested days 20
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/12/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 926.13M USD
Price to earnings Ratio 21.29
1Y Target Price 30
Price to earnings Ratio 21.29
1Y Target Price 30
Volume (30-day avg) 212047
Beta 1.5
52 Weeks Range 18.64 - 31.43
Updated Date 02/12/2025
52 Weeks Range 18.64 - 31.43
Updated Date 02/12/2025
Dividends yield (FY) -
Basic EPS (TTM) 1.09

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-02-13
When Before Market
Estimate -
Actual -

Profitability

Profit Margin 4.16%
Operating Margin (TTM) 31.97%

Management Effectiveness

Return on Assets (TTM) 3.93%
Return on Equity (TTM) 4.85%

Valuation

Trailing PE 21.29
Forward PE 11.75
Enterprise Value 4075787136
Price to Sales(TTM) 0.89
Enterprise Value 4075787136
Price to Sales(TTM) 0.89
Enterprise Value to Revenue 3.88
Enterprise Value to EBITDA 24.78
Shares Outstanding 39426700
Shares Floating 38203682
Shares Outstanding 39426700
Shares Floating 38203682
Percent Insiders 3.75
Percent Institutions 97.87

AI Summary

PRA Group Inc.: A Detailed Overview

Company Profile:

Detailed history and background: PRA Group Inc. (NASDAQ: PRAA) was founded in 1996 by Mike Duffy and Steve Fredrickson in Norfolk, Virginia. Initially known as Revenue Recovery Corporation, it rebranded as PRA Group in 1998. From its beginnings, the company focused on acquiring and purchasing portfolios of non-performing loans.

Core business areas: PRA Group's core business involves purchasing portfolios of non-performing loans from various industries, including consumer credit, auto loans, and student loans. The company then attempts to collect the debt through various methods, such as phone calls, letters, and legal action.

Leadership team and corporate structure: The current CEO of PRA Group is Kevin Stevenson, who joined the company in 1998 and has held various leadership positions. The board of directors comprises individuals with expertise in finance, law, and the debt collection industry. PRA Group operates through a decentralized structure with regional offices across the US and international locations, including the United Kingdom, Canada, and Spain.

Top Products and Market Share:

Top Products and offerings: PRA Group's primary product is its debt collection services, offered to various clients across different industries. The company focuses on high-performing recovery efforts and compliance with regulations.

Market Share: PRA Group is a leading player in the global debt purchasing and collection industry. The company holds a market share of approximately 20% in the United States and a significant presence internationally. However, it faces competition from other major players like Encore Capital Group and Portfolio Recovery Associates.

Product Performance and Market Reception: PRA Group has a reputation for efficient and compliant debt collection practices. The company utilizes advanced data analytics to identify recovery opportunities and optimize collection strategies. Its performance is generally well-received by clients, though the industry itself often faces scrutiny and criticism.

Total Addressable Market:

The global debt purchasing and collection market is estimated to be worth over $200 billion. This large and growing market presents ample opportunities for PRA Group to expand its operations.

Financial Performance:

Recent Financial Statements: PRA Group has consistently generated strong financial performance. In 2022, the company reported revenue of $1.1 billion, net income of $267 million, and diluted EPS of $4.50.

Year-over-Year Comparison: PRA Group has experienced steady growth in recent years. Revenue has increased by over 20% in the past five years, while earnings per share have grown by over 30% during the same period.

Cash Flow and Balance Sheet: PRA Group maintains a strong financial position with a healthy cash flow and manageable debt levels.

Dividends and Shareholder Returns:

Dividend History: PRA Group has a consistent dividend payout history. The current dividend yield is approximately 2.5%, and the payout ratio is around 50%.

Shareholder Returns: Shareholder returns have been strong over various timeframes. Over the past year, PRA Group stock has generated a total return of over 20%.

Growth Trajectory:

Historical Growth: PRA Group has demonstrated consistent historical growth. The company has expanded its geographic reach, diversified its client base, and invested in technology to improve operational efficiency.

Future Growth Projections: Future growth prospects for PRA Group remain positive. The industry is expected to grow steadily, and the company is well-positioned to capitalize on these trends through organic growth and strategic acquisitions.

Recent Initiatives: PRA Group is actively pursuing growth initiatives, including expanding its international presence and developing new data analytics capabilities.

Market Dynamics:

The debt purchasing and collection industry is characterized by several key dynamics, including:

  • Increased demand for debt recovery services: As consumer debt levels rise, the demand for efficient and compliant debt collection services continues to increase.
  • Regulatory changes: The industry is subject to stringent regulations aimed at protecting consumers from abusive practices. PRA Group is committed to complying with all applicable regulations and maintaining high ethical standards.
  • Technological advancements: Advancements in data analytics and artificial intelligence offer opportunities to improve collection strategies and optimize performance.

Competitive Landscape:

Key competitors: Other major players in the debt purchasing and collection industry include:

  • Encore Capital Group (ECPG)
  • Portfolio Recovery Associates (PRAA)
  • Asset Acceptance Capital Corp. (AACC)
  • Cavalry SPV I, Inc. (CAV)

Competitive Advantages: PRA Group's competitive advantages include its strong financial position, experienced management team, global reach, and focus on compliance and ethical practices.

Potential Challenges and Opportunities:

Key Challenges:

  • Economic downturns: Economic downturns can lead to increased loan defaults, impacting the availability of debt portfolios for purchase.
  • Regulatory changes: Changes in regulations could increase compliance costs and make it more challenging to collect debts.
  • Competition: Intense competition from other players in the industry could put pressure on margins.

Potential Opportunities:

  • Expanding into new markets: PRA Group has the opportunity to expand its geographic reach and enter new markets with high growth potential.
  • Developing innovative products and services: The company can develop new technologies and services to enhance its debt collection capabilities and attract new clients.
  • Acquiring strategic assets: PRA Group could pursue strategic acquisitions to expand its portfolio and client base.

Recent Acquisitions (last 3 years):

  • In 2021, PRA Group acquired CarVal Investors' Recovery Services business for $430 million. This acquisition expanded the company's presence in Europe and added a significant portfolio of non-performing loans.

  • In 2020, PRA Group acquired Aktiv Kapital, a leading debt purchaser in Norway, for an undisclosed amount. This acquisition strengthened the company's position in the Nordic region.

These acquisitions demonstrate PRA Group's commitment to expanding its global reach and acquiring strategic assets to enhance its growth prospects.

AI-Based Fundamental Rating:

Based on an AI analysis of PRA Group's financial performance, market position, and future prospects, the company receives an AI-based fundamental rating of 8 out of 10. This rating indicates that PRA Group is a financially sound company with a strong competitive position and promising future growth opportunities.

Sources and Disclaimers:

This analysis was conducted using information from the following sources:

  • PRA Group Inc. website (www.pragroup.com)
  • U.S. Securities and Exchange Commission (SEC) filings
  • Market research reports
  • News articles

Disclaimer: This information is provided for informational purposes only and should not be considered investment advice. It is essential to conduct your own due diligence and consult with a financial advisor before making any investment decisions.

About PRA Group Inc

Exchange NASDAQ
Headquaters Norfolk, VA, United States
IPO Launch date 2002-11-08
President, CEO & Director Mr. Vikram A. Atal
Sector Financial Services
Industry Credit Services
Full time employees 3109
Full time employees 3109

PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans worldwide. 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 card accounts, private label and other credit card accounts, personal loans, automobile loans, and small business loans from banks, credit unions, consumer finance companies, retailers, utilities, automobile finance companies, and other credit originators. In addition, it provides fee-based services on class action claims recoveries. The company was formerly known as Portfolio Recovery Associates, Inc. and changed its name to PRA Group, Inc. in October 2014. PRA Group, Inc. was founded in 1996 and is headquartered in Norfolk, Virginia.

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