Pra Group Stock Fair Value – PRA Group Incurs Q2 Loss of 10 Cents Per Share, Relieved by Lower Operating Costs
August 10, 2023
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PRA ($NASDAQ:PRAA) Group, Inc. is a financial and business services company that specializes in debt recovery and receivables management services. It offers a variety of services to its clients, including debt collection, portfolio acquisition, analytics, customer service, and more. The company serves banks, retailers, and other creditors around the world. In the second quarter of 2023, PRA Group reported a loss of 10 cents per share. The improved performance was due to lower operating costs, which was due to the company’s cost cutting measures implemented in the previous quarters.
The company also benefited from an increase in the demand for its services and a decrease in impaired receivables. This enabled PRA Group to record slightly higher revenues and improvements in operating margins. Despite these positive developments, the company’s overall performance still lagged behind estimates due to higher overhead costs. The company is optimistic about its future prospects and believes that it can continue to deliver strong results going forward.
Share Price
On Tuesday, PRA Group Inc., a financial services company, announced its financial results for the second quarter of the year. However, the losses were partially offset by a reduction in operating costs. The news of the losses caused PRA Group’s stock to open at $23.4 on Tuesday and close at $21.7, down 1.3% from its previous closing price of $22.0. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pra Group. More…
| Total Revenues | Net Income | Net Margin |
| 842.21 | -21.74 | -2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pra Group. More…
| Operations | Investing | Financing |
| -17.48 | -120.52 | 197.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pra Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.32k | 3.08k | 29.7 |
Key Ratios Snapshot
Some of the financial key ratios for Pra Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -6.4% | -74.5% | 0.4% |
| FCF Margin | ROE | ROA |
| -2.8% | 0.2% | 0.0% |
Analysis – Pra Group Stock Fair Value
At GoodWhale, we conducted an analysis of PRA GROUP‘s wellbeing. We found that the fair value of PRA GROUP share is around $37.5, calculated by our proprietary Valuation Line. This implies that currently PRA GROUP stock is undervalued by 42.2%, as it is traded at $21.7. As a result, we believe that there are attractive opportunities to invest in PRA GROUP. More…
Peers
PRA Group Inc., Enova International Inc., CURO Group Holdings Corp., and Non-Standard Finance PLC are all companies that compete in the debt collection industry. While PRA Group Inc. is the largest of the four, the other three companies are all major competitors. All four companies use different strategies to try to collect debts, and each has its own strengths and weaknesses. Enova International Inc. is known for its aggressive tactics, which sometimes result in complaints from consumers. CURO Group Holdings Corp. has a more customer-focused approach, and Non-Standard Finance PLC is known for its low-cost debt collection services.
– Enova International Inc ($NYSE:ENVA)
Enova International Inc is a provider of online financial services. The company offers a range of services including online lending, point-of-sale financing, and card services. Enova International Inc has a market cap of 1.21B as of 2022. The company has a return on equity of 15.56%. Enova International Inc provides online financial services to consumers and small businesses. The company offers a range of services including online lending, point-of-sale financing, and card services.
– CURO Group Holdings Corp ($NYSE:CURO)
CURO Group Holdings Corp is a holding company that owns and operates a portfolio of consumer finance brands. The company offers a range of financial products and services, including credit cards, personal loans, and lines of credit. CURO Group Holdings Corp has a market cap of 129.96M as of 2022 and a Return on Equity of -13.26%. The company’s primary brands are CURO and OneMain Financial. CURO Group Holdings Corp is headquartered in Wilmington, Delaware.
– Non-Standard Finance PLC ($LSE:NSF)
As of 2022, Non-Standard Finance PLC has a market cap of 1.92M and a Return on Equity of 61.44%. The company is a provider of non-standard personal credit products in the United Kingdom. The company offers unsecured loans, guarantor loans, and secured loans to individuals who may not be able to obtain credit from traditional sources.
Summary
This was primarily due to lower operating costs. Despite the loss, investors should consider the overall outlook for the company to be positive as it is continuing to innovate and find new areas of growth. Specifically, there has been a focus on improving customer service, entering new markets, and leveraging digital channels.
Additionally, cost-cutting initiatives have helped to reduce expenses and boost profitability. Investors should monitor these progress and look for future indicators of success.
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