Pra Group (PRAA) AI Stock Analysis

• Market Cap: $620.10M
• Dividend Yield: N/A
• Average Volume (3M): 276.51K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.35
• Revenue Growth: 18.67%
• EPS Growth: 2254.86%
• Country: US
• Employees: 2,991
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.08
• Shares Outstanding: 39,073,696
• 10 Day Avg. Volume: 399,690
• 30 Day Avg. Volume: 276,510
• PEG Ratio: -0.06
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.73
• P/FCF Ratio: -8.34
• Enterprise Value/Market Cap: 6.96
• Enterprise Value/Revenue: 3.84
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: 21.85
• 1Y Price Target: $28.50
• Price Target Upside: 77.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: $17.50 ▲(9.10% Upside)

Pra Group's overall score is driven by a positive earnings call and attractive valuation, offset by financial performance challenges and mixed technical indicators. Strong cash collections and strategic gains are key strengths, while liquidity and expense management need improvement.

Positive Factors

Record ERC Achievement

Achieving a record ERC indicates strong future cash flow potential, enhancing the company's ability to generate revenue from existing portfolios.

Strong Cash Collections Growth

Increased cash collections reflect effective portfolio management and collection strategies, supporting revenue growth and operational stability.

Improved Legal Channel Performance

Enhanced legal channel performance underscores the company's strategic focus on high-return areas, boosting long-term profitability.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure margins and reduce profitability, necessitating cost control measures for sustainable financial health.

Adjustment in Expected Recoveries

Negative adjustments in expected recoveries could signal challenges in collection efficiency, impacting future revenue projections.

Decline in Net Income Excluding One-Time Gain

Excluding one-time gains, the low net income indicates underlying profitability issues, which could affect long-term financial performance.

Pra Group Business Overview & Revenue Model

Company Description

PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas, Australia, and Europe. 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 cards, private label and other credit cards, installment loans, lines of credit, deficiency balances of various types, legal judgments, and trade payables 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 and by servicing consumer bankruptcy accounts. 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 incorporated in 1996 and is headquartered in Norfolk, Virginia.

How the Company Makes Money

PRA Group generates revenue primarily through the collection of amounts owed on the non-performing loans it acquires. The company's revenue model is based on purchasing these debts at a discount and then working to collect the full amount from borrowers. This involves a combination of direct collections and negotiating settlements. PRA Group also earns income from various ancillary services related to debt recovery and asset management. Key revenue streams include collections on purchased portfolios, fees for servicing accounts, and interest income from payment plans. Additionally, strategic partnerships with financial institutions and credit agencies enhance its ability to acquire profitable portfolios and improve collection rates, further contributing to its earnings.

Pra Group Financial Statement Overview

Summary

Pra Group exhibits strong revenue growth and gross profit margins, but profitability is hindered by high expenses and leverage. The balance sheet shows significant debt levels, raising concerns about financial stability. Cash flow challenges further point to liquidity constraints. Overall, while there are growth opportunities, the company must address profitability and cash management to enhance financial health.

Income Statement

The company shows a strong gross profit margin of 70.7% for TTM, indicating efficient cost management. However, the net profit margin is relatively low at 6.3%, suggesting potential challenges in controlling operating and other expenses. The revenue growth rate for TTM is significant at 37.9%, reflecting robust top-line expansion. Nevertheless, the net income has been volatile, with a shift from a loss in 2023 to a profit in the TTM period.

Balance Sheet

The debt-to-equity ratio is high at 2.96 for TTM, indicating substantial leverage, which could pose financial risk. The return on equity is modest at 6.2%, reflecting challenges in generating profits from equity investment. The equity ratio stands at 23.0%, suggesting a moderate reliance on equity financing compared to total assets.

Cash Flow

The company faces challenges with negative free cash flow for TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting difficulties in converting profits into cash. The free cash flow to net income ratio is also negative, suggesting that cash outflows exceed inflows from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	1.12B	815.50M	968.75M	1.10B	1.07B
Gross Profit	945.91M	685.65M	504.66M	612.11M	718.08M	628.55M
EBITDA	197.56M	209.13M	133.54M	301.05M	390.25M	368.17M
Net Income	91.64M	70.60M	-83.48M	117.15M	183.16M	149.34M
Balance Sheet
Total Assets	5.43B	4.93B	4.53B	4.18B	4.37B	4.45B
Cash, Cash Equivalents and Short-Term Investments	131.59M	161.70M	172.00M	83.38M	87.58M	108.61M
Total Debt	29.45M	3.36B	3.08B	2.55B	2.67B	2.72B
Total Liabilities	4.04B	3.74B	3.29B	2.89B	3.04B	3.08B
Stockholders Equity	1.34B	1.14B	1.17B	1.23B	1.29B	1.34B
Cash Flow
Free Cash Flow	-61.99M	-98.64M	-100.42M	8.34M	73.71M	124.47M
Operating Cash Flow	-57.60M	-94.59M	-97.53M	21.59M	84.92M	141.70M
Investing Cash Flow	-319.68M	-382.47M	-234.86M	120.45M	160.38M	115.00M
Financing Cash Flow	392.91M	488.44M	355.30M	-121.34M	-262.81M	-252.10M

Pra Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRAA, the sentiment is Negative. The current price of 16.04 is below the 20-day moving average (MA) of 16.74, below the 50-day MA of 16.33, and below the 200-day MA of 18.02, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 15.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRAA.

Pra Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EZPW	79 Outperform	1.14B	15.21	9.91%	―	8.31%	23.50%
ATLC	78 Outperform	958.65M	11.15	20.88%	―	19.27%	34.76%
WRLD	75 Outperform	1.00B	12.44	18.96%	―	0.77%	12.08%
RM	74 Outperform	405.00M	12.25	11.55%	2.90%	7.32%	38.85%
PRAA	62 Neutral	$620.10M	6.85	7.38%	―	18.67%	2254.86%
CPSS	62 Neutral	174.68M	9.80	6.41%	―	16.13%	-28.76%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Pra Group Corporate Events

PRA Group Reports Strong Q2 2025 Financial Results

On August 4, 2025, PRA Group reported its financial results for the second quarter of 2025, highlighting a 96.9% increase in net income attributable to the company, reaching $42.4 million. The company achieved record estimated remaining collections of $8.3 billion, a 21.9% increase, and a 13.2% rise in total cash collections to $536.3 million. The results reflect strong portfolio purchases at attractive returns, with a focus on transforming its U.S. business and leveraging its European performance, indicating a positive trajectory for sustained shareholder value.

The most recent analyst rating on (PRAA) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Pra Group stock, see the PRAA Stock Forecast page.

PRA Group Appoints Martin Sjolund as CEO and Director

On June 17, 2025, PRA Group, Inc. appointed Martin Sjolund as President and CEO, amending his Service Agreement to reflect his new role and increasing his compensation package. Concurrently, R. Owen James was promoted to President of PRA Group Europe, with an amended employment contract reflecting his new position and compensation. Additionally, the company’s Board of Directors appointed Sjolund as a director for a one-year term, and the 2025 Annual Meeting saw the election of directors and the ratification of Ernst & Young LLP as the independent auditor.

The most recent analyst rating on (PRAA) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Pra Group stock, see the PRAA Stock Forecast page.