Pra Group Stock Intrinsic Value – Activist Engaged Capital Takes Stake in Debt Collector PRA, Sources Confirm
December 20, 2023
☀️Trending News
Sources have confirmed that Activist Engaged Capital, a leading activist investor group, has taken a stake in PRA ($NASDAQ:PRAA) Group, the leading debt collector in North America. The company specializes in acquiring, servicing, and collecting delinquent debts in order to maximize returns for its creditors and investors. It offers a variety of services including account management, collections, and skip tracing. In addition to its core debt collection services, PRA Group also provides analytics and reporting, litigation management, and demand services.
Activist Engaged Capital’s investment in PRA Group marks a significant milestone in the company’s growth and could potentially lead to further opportunities for the company to expand its operations. This move is likely to be viewed positively by investors and will provide the company with additional capital to fund potential acquisitions and other growth initiatives.
Market Price
This news caused a significant surge in the company’s stock price; when the market opened, PRA GROUP stock opened at $20.6 and closed at $22.4, an increase of 11.0% from the prior closing price of 20.2. With Activist Engaged Capital now involved, investors are eager to see what changes may be in store for the debt collector. 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 |
| 815.51 | -58.74 | -6.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pra Group. More…
| Operations | Investing | Financing |
| -93.27 | -254.54 | 396.96 |
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 |
| 4.33k | 3.14k | 28.43 |
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 |
| -8.1% | -48.3% | 2.1% |
| FCF Margin | ROE | ROA |
| -12.0% | 1.0% | 0.3% |
Analysis – Pra Group Stock Intrinsic Value
At GoodWhale, we conducted an in-depth analysis of the fundamentals of PRA Group. Our proprietary Valuation Line concluded that the fair value of PRA Group is around $33.0. This means that the current stock price of $22.4 is undervalued by 32.1%. We believe that PRA Group presents a lucrative investment opportunity for investors who can capitalize on this price discrepancy. We encourage investors to conduct their own independent research on the company to make an informed decision. More…
Peers
PRA Group Inc., Enova International Inc., CURO Group Holdings Corp., and Non-Standard Finance PLC are all companies that compete in the debt collection industry. While PRA Group Inc. is the largest of the four, the other three companies are all major competitors. All four companies use different strategies to try to collect debts, and each has its own strengths and weaknesses. Enova International Inc. is known for its aggressive tactics, which sometimes result in complaints from consumers. CURO Group Holdings Corp. has a more customer-focused approach, and Non-Standard Finance PLC is known for its low-cost debt collection services.
– Enova International Inc ($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
As investors reacted positively to the news that Activist Engaged Capital had taken a stake in PRA Group, the stock price of the debt collector increased on that day. An analysis of their financials reveals that PRA Group has been providing consistent profits over the years and is well-positioned for future growth. The company has a diversified portfolio of services, including collection, data analytics, litigation, and international debt recovery. It has a broad customer base across multiple industries, including retail, healthcare, utilities, and telecommunications.
Additionally, the company has maintained strong liquidity levels and has been able to successfully manage operating expenses. Furthermore, the company has taken steps to become more digital in order to better serve an increasingly digital society. All these factors make PRA Group an attractive investment option for long-term investors.
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