(PRAA) PRA - Overview
Sector: Financial Services | Industry: Credit Services | Exchange: NASDAQ (USA) | Market Cap: 555m USD | Total Return: 5% in 12m
Avg Turnover: 8.77M
Qual. Beats: 0
Rev. Trend: 96.8%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
PRA Group, Inc. (PRAA) is a global financial services firm specializing in the acquisition and management of nonperforming loan (NPL) portfolios. The company purchases defaulted debt from credit originators, including credit card issuers, auto lenders, and small business creditors, at a discount to the face value. Its operations span North America, Europe, South America, and Australia, focusing on both core collections and insolvency proceedings.
The business model relies on the spread between the purchase price of distressed debt and the actual capital recovered over the life of the portfolio. Unlike traditional lenders, NPL purchasers operate in a counter-cyclical industry where increased consumer default rates often lead to a higher volume of available inventory at lower acquisition costs. For a deeper look at how these market cycles impact valuation, you can explore the data on ValueRay.
In addition to debt purchasing, PRA Group provides fee-based services for class action claim recoveries and manages diverse asset classes such as private label credit cards and overdrafts. Founded in 1996 and rebranded in 2014, the company maintains its primary corporate headquarters in Norfolk, Virginia.
- Higher interest rates increase supply of nonperforming loan portfolios from credit originators
- Portfolio yield expansion depends on efficient collection of aged consumer debt balances
- Legal and regulatory changes impact recovery rates on bankruptcy and insolvency claims
- Rising unemployment levels increase volume of available delinquent credit card and auto loans
- European market expansion diversification offsets domestic regulatory pressure on debt collection practices
| Net Income: -280.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.00 > 0.02 and ΔFCF/TA 1.27 > 1.0 |
| NWC/Revenue: 4.92% < 20% (prev 369.1%; Δ -364.2% < -1%) |
| CFO/TA -0.00 > 3% & CFO -8.02m > Net Income -280.6m |
| Net Debt (3.72b) to EBITDA (85.6m): 43.44 < 3 |
| Current Ratio: 2.02 > 1.5 & < 3 |
| Outstanding Shares: last quarter (38.5m) vs 12m ago -2.97% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 24.77% > 50% (prev 22.11%; Δ 2.66% > 0%) |
| Interest Coverage Ratio: 0.43 > 6 (EBITDA TTM 85.6m / Interest Expense TTM 180.6m) |
| A: 0.01 (Total Current Assets 124.8m - Total Current Liabilities 61.7m) / Total Assets 5.21b |
| B: 0.25 (Retained Earnings 1.28b / Total Assets 5.21b) |
| C: 0.01 (EBIT TTM 77.2m / Avg Total Assets 5.18b) |
| D: 0.24 (Book Value of Equity 999.0m / Total Liabilities 4.14b) |
| Altman-Z'' = 1.24 = BB |
| DSRI: 0.95 (Receivables 4.64b/4.33b, Revenue 1.28b/1.14b) |
| GMI: 0.62 (GM 98.83% / 61.30%) |
| AQI: 8.68 (AQ_t 0.97 / AQ_t-1 0.11) |
| SGI: 1.13 (Revenue 1.28b / 1.14b) |
| TATA: -0.05 (NI -280.6m - CFO -8.02m) / TA 5.21b) |
| Beneish M = 1.18 (Cap -4..+1) = D |
As of May 26, 2026, the stock is trading at USD 14.64 with a total of 436,100 shares traded.
Over the past week, the price has changed by -3.43%,
over one month by -33.27%,
over three months by +25.13% and
over the past year by +5.02%.
PRA has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold PRAA.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 26 | 77.6% |
P/E Forward = 10.0
P/S = 0.4448
P/B = 0.5598
P/EG = 5.8234
Revenue TTM = 1.28b USD
EBIT TTM = 77.2m USD
EBITDA TTM = 85.6m USD
Long Term Debt = 3.78b USD (from longTermDebt, last quarter)
Short Term Debt = 31.6m USD (from shortTermDebt, last quarter)
Debt = 3.84b USD (corrected: LT Debt 3.78b + ST Debt 31.6m) + Leases 31.6m
Net Debt = 3.72b USD (calculated: Debt 3.84b - CCE 124.8m)
Enterprise Value = 4.27b USD (554.6m + Debt 3.84b - CCE 124.8m)
Interest Coverage Ratio = 0.43 (Ebit TTM 77.2m / Interest Expense TTM 180.6m)
EV/FCF = -319.9x (Enterprise Value 4.27b / FCF TTM -13.4m)
FCF Yield = -0.31% (FCF TTM -13.4m / Enterprise Value 4.27b)
FCF Margin = -1.04% (FCF TTM -13.4m / Revenue TTM 1.28b)
Net Margin = -21.88% (Net Income TTM -280.6m / Revenue TTM 1.28b)
Gross Margin = unknown ((Revenue TTM 1.28b - Cost of Revenue TTM 14.9m) / Revenue TTM)
Tobins Q-Ratio = 0.82 (Enterprise Value 4.27b / Total Assets 5.21b)
Interest Expense / Debt = 4.70% (Interest Expense 180.6m / Debt 3.84b)
Taxrate = 21.62% (8.76m / 40.5m)
NOPAT = 60.5m (EBIT 77.2m * (1 - 21.62%))
Current Ratio = 2.02 (Total Current Assets 124.8m / Total Current Liabilities 61.7m)
Debt / Equity = 3.83 (Debt 3.84b / totalStockholderEquity, last quarter 1.00b)
Debt / EBITDA = 43.44 (Net Debt 3.72b / EBITDA 85.6m)
Debt / FCF = -278.4 (out of range, set to none) (Net Debt 3.72b / FCF TTM -13.4m)
Total Stockholder Equity = 1.06b (last 4 quarters mean from totalStockholderEquity)
RoA = -5.42% (Net Income -280.6m / Total Assets 5.21b)
RoE = -26.42% (Net Income TTM -280.6m / Total Stockholder Equity 1.06b)
RoCE = 1.59% (EBIT 77.2m / Capital Employed (Equity 1.06b + L.T.Debt 3.78b))
RoIC = 1.18% (NOPAT 60.5m / Invested Capital 5.12b)
WACC = 4.46% (E(554.6m)/V(4.40b) * Re(9.81%) + D(3.84b)/V(4.40b) * Rd(4.70%) * (1-Tc(0.22)))
Discount Rate = 9.81% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -20.0 | Cagr: -0.84%
[DCF] Fair Price = unknown (Cash Flow -13.4m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.62 | # QB: 0
Revenue Correlation: 96.83 | Revenue CAGR: 19.20% | SUE: 0.66 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.53 | Chg30d=+2.94% | Revisions=+20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.59 | Chg30d=-3.28% | Revisions=+0% | Analysts=2
EPS current Year (2026-12-31): EPS=2.52 | Chg30d=+7.25% | Revisions=+33% | GrowthEPS=+36.7% | GrowthRev=+1.5%
EPS next Year (2027-12-31): EPS=2.83 | Chg30d=-4.72% | Revisions=-20% | GrowthEPS=+12.3% | GrowthRev=-0.1%
[Analyst] Revisions Ratio: +33%