(PRG) PROG Holdings - Ratings and Ratios
Lease-To-Own, Credit Products, E-Commerce, Virtual
Description: PRG PROG Holdings August 21, 2025
PROG Holdings Inc (NYSE:PRG) is a consumer finance company operating in the United States. The companys primary business involves providing financial services, likely including lease-to-own solutions for consumers.
To evaluate PROG Holdings performance, key financial metrics such as Return on Equity (RoE) are crucial. With a RoE of 32.98%, the company demonstrates a strong ability to generate profits from shareholders equity. However, the Price-to-Earnings (P/E) ratio of 6.67 suggests that the stock might be undervalued relative to its earnings, while the forward P/E of 51.28 indicates expected significant growth in earnings per share.
Market capitalization stands at $1.33 billion, indicating a mid-cap company with a certain level of market presence. The companys beta of 1.72 signifies that its stock price is more volatile than the overall market, suggesting a higher risk profile for investors.
Economic drivers for PROG Holdings include consumer spending habits, interest rates, and the overall health of the retail industry, as these factors can influence demand for lease-to-own financial solutions. Key Performance Indicators (KPIs) to monitor would include revenue growth, net interest margin, and delinquency rates on leases, as these metrics can provide insights into the companys operational efficiency and risk management.
To further assess the investment potential of PROG Holdings, analyzing its income tax expense on a yearly basis can offer insights into the companys tax strategies and their impact on profitability. Fluctuations in income tax expense could be driven by changes in tax laws, the companys operational structure, or its profitability levels.
PRG Stock Overview
| Market Cap in USD | 1,288m |
| Sub-Industry | Consumer Finance |
| IPO / Inception | 1984-09-07 |
PRG Stock Ratings
| Growth Rating | 4.99% |
| Fundamental | 72.7% |
| Dividend Rating | 64.8% |
| Return 12m vs S&P 500 | -45.8% |
| Analyst Rating | 4.29 of 5 |
PRG Dividends
| Dividend Yield 12m | 1.76% |
| Yield on Cost 5y | 1.16% |
| Annual Growth 5y | 36.07% |
| Payout Consistency | 87.0% |
| Payout Ratio | 11.6% |
PRG Growth Ratios
| Growth Correlation 3m | -45.2% |
| Growth Correlation 12m | -35.3% |
| Growth Correlation 5y | -26.2% |
| CAGR 5y | 21.48% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.41 |
| CAGR/Mean DD 3y (Pain Ratio) | 1.10 |
| Sharpe Ratio 12m | -0.46 |
| Alpha | -61.67 |
| Beta | 1.758 |
| Volatility | 38.61% |
| Current Volume | 569.2k |
| Average Volume 20d | 357k |
| Stop Loss | 27.5 (-4.9%) |
| Signal | 0.42 |
Piotroski VR‑10 (Strict, 0-10) 8.5
| Net Income (163.9m TTM) > 0 and > 6% of Revenue (6% = 114.7m TTM) |
| FCFTA 0.19 (>2.0%) and ΔFCFTA 10.40pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 9.18% (prev 38.76%; Δ -29.58pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.20 (>3.0%) and CFO 305.4m > Net Income 163.9m (YES >=105%, WARN >=100%) |
| Net Debt (-292.6m) to EBITDA (1.09b) ratio: -0.27 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.97 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (40.5m) change vs 12m ago -6.23% (target <= -2.0% for YES) |
| Gross Margin 34.03% (prev 19.00%; Δ 15.04pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 127.8% (prev 167.2%; Δ -39.38pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 3.71 (EBITDA TTM 1.09b / Interest Expense TTM 49.3m) >= 6 (WARN >= 3) |
Altman Z'' 5.29
| (A) 0.11 = (Total Current Assets 356.4m - Total Current Liabilities 180.9m) / Total Assets 1.55b |
| (B) 1.01 = Retained Earnings (Balance) 1.56b / Total Assets 1.55b |
| warn (B) unusual magnitude: 1.01 — check mapping/units |
| (C) 0.12 = EBIT TTM 183.1m / Avg Total Assets 1.50b |
| (D) 0.41 = Book Value of Equity 346.8m / Total Liabilities 843.0m |
| Total Rating: 5.29 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 72.65
| 1. Piotroski 8.50pt = 3.50 |
| 2. FCF Yield 17.91% = 5.0 |
| 3. FCF Margin 15.46% = 3.87 |
| 4. Debt/Equity 0.93 = 2.08 |
| 5. Debt/Ebitda -0.27 = 2.50 |
| 6. ROIC - WACC (= 1.90)% = 2.37 |
| 7. RoE 24.49% = 2.04 |
| 8. Rev. Trend 21.03% = 1.58 |
| 9. EPS Trend -5.73% = -0.29 |
What is the price of PRG shares?
Over the past week, the price has changed by -8.36%, over one month by -8.36%, over three months by -6.43% and over the past year by -34.28%.
Is PROG Holdings a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of PRG is around 24.79 USD . This means that PRG is currently overvalued and has a potential downside of -14.31%.
Is PRG a buy, sell or hold?
- Strong Buy: 4
- Buy: 1
- Hold: 2
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the PRG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 38.6 | 33.3% |
| Analysts Target Price | 38.6 | 33.3% |
| ValueRay Target Price | 27.7 | -4.4% |
PRG Fundamental Data Overview October 25, 2025
P/E Trailing = 7.9036
P/E Forward = 51.2821
P/S = 0.5139
P/B = 1.867
Beta = 1.758
Revenue TTM = 1.91b USD
EBIT TTM = 183.1m USD
EBITDA TTM = 1.09b USD
Long Term Debt = 596.8m USD (from longTermDebt, last fiscal year)
Short Term Debt = 46.8m USD (from shortTermDebt, last fiscal year)
Debt = 655.1m USD (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -292.6m USD (from netDebt column, last quarter)
Enterprise Value = 1.65b USD (1.29b + Debt 655.1m - CCE 292.6m)
Interest Coverage Ratio = 3.71 (Ebit TTM 183.1m / Interest Expense TTM 49.3m)
FCF Yield = 17.91% (FCF TTM 295.6m / Enterprise Value 1.65b)
FCF Margin = 15.46% (FCF TTM 295.6m / Revenue TTM 1.91b)
Net Margin = 8.57% (Net Income TTM 163.9m / Revenue TTM 1.91b)
Gross Margin = 34.03% ((Revenue TTM 1.91b - Cost of Revenue TTM 1.26b) / Revenue TTM)
Gross Margin QoQ = none% (prev 35.32%)
Tobins Q-Ratio = 1.07 (Enterprise Value 1.65b / Total Assets 1.55b)
Interest Expense / Debt = 1.20% (Interest Expense 7.88m / Debt 655.1m)
Taxrate = 27.44% (12.5m / 45.6m)
NOPAT = 132.8m (EBIT 183.1m * (1 - 27.44%))
Current Ratio = 1.97 (Total Current Assets 356.4m / Total Current Liabilities 180.9m)
Debt / Equity = 0.93 (Debt 655.1m / totalStockholderEquity, last quarter 703.6m)
Debt / EBITDA = -0.27 (Net Debt -292.6m / EBITDA 1.09b)
Debt / FCF = -0.99 (Net Debt -292.6m / FCF TTM 295.6m)
Total Stockholder Equity = 669.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 10.60% (Net Income 163.9m / Total Assets 1.55b)
RoE = 24.49% (Net Income TTM 163.9m / Total Stockholder Equity 669.2m)
RoCE = 14.46% (EBIT 183.1m / Capital Employed (Equity 669.2m + L.T.Debt 596.8m))
RoIC = 10.47% (NOPAT 132.8m / Invested Capital 1.27b)
WACC = 8.57% (E(1.29b)/V(1.94b) * Re(12.49%) + D(655.1m)/V(1.94b) * Rd(1.20%) * (1-Tc(0.27)))
Discount Rate = 12.49% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -5.23%
[DCF Debug] Terminal Value 64.43% ; FCFE base≈227.8m ; Y1≈235.4m ; Y5≈266.8m
Fair Price DCF = 63.09 (DCF Value 2.50b / Shares Outstanding 39.5m; 5y FCF grow 3.42% → 3.0% )
EPS Correlation: -5.73 | EPS CAGR: 2.54% | SUE: 1.43 | # QB: 2
Revenue Correlation: 21.03 | Revenue CAGR: -0.49% | SUE: 3.55 | # QB: 7
Additional Sources for PRG Stock
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Fund Manager Positions: Dataroma | Stockcircle