Pra Group (PRAA) AI Stock Analysis

• Market Cap: $529.64M
• Dividend Yield: N/A
• Average Volume (3M): 320.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: 13.79%
• EPS Growth: -899.50%
• Country: US
• Employees: 2,991
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -10.43
• Shares Outstanding: 39,073,696
• 10 Day Avg. Volume: 377,494
• 30 Day Avg. Volume: 320,829
• 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: 8.17
• Enterprise Value/Revenue: 3.85
• Enterprise Value/Gross Profit: 4.58
• Enterprise Value/Ebitda: 21.91
• 1Y Price Target: $25.00
• Price Target Upside: 69.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $14.50 ▼(-1.63% Downside)

Pra Group's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant challenges with declining revenue and liquidity issues, as well as a bearish technical outlook. Valuation concerns further weigh on the score, with a negative P/E ratio and no dividend yield. While the earnings call provided some positive insights, it was not enough to offset the broader financial and market challenges.

Positive Factors

Cash Collections Growth

The increase in cash collections indicates effective debt recovery strategies and operational efficiency, enhancing revenue potential.

Operational Efficiency

Cost-saving measures improve profitability and demonstrate management's focus on operational efficiency, supporting long-term financial health.

European Market Performance

Strong performance in Europe suggests successful strategic execution and potential for further growth in international markets.

Negative Factors

Goodwill Impairment

The significant goodwill impairment reflects challenges in asset valuation, impacting net income and highlighting potential market overvaluation.

Revenue Decline

Declining revenue suggests challenges in maintaining sales momentum, which could affect long-term growth and market position.

Negative Cash Flows

Negative cash flows indicate liquidity issues, potentially limiting investment in growth opportunities and affecting financial stability.

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 shows strong gross profit margins and improved leverage, but faces challenges with declining revenue, modest profitability, and negative cash flows. The company needs to address revenue growth and liquidity to enhance its financial health.

Income Statement

Pra Group's income statement shows a mixed performance. The TTM gross profit margin is strong at 84.14%, indicating efficient cost management. However, the net profit margin is relatively low at 8.15%, and the revenue growth rate is negative, reflecting a decline in sales. The EBIT and EBITDA margins are moderate, suggesting stable operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reveals a significant improvement in the debt-to-equity ratio, dropping to 0.02 in the TTM period, which indicates reduced leverage and financial risk. However, the return on equity is modest at 7.47%, and the equity ratio is not provided, limiting a full assessment of financial stability.

Cash Flow

Cash flow analysis indicates challenges, with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is positive at 1.08, suggesting some ability to cover net income with free cash flow. However, the negative growth in free cash flow and operating cash flow coverage ratio highlight liquidity concerns.

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	196.37M	161.70M	172.00M	83.38M	87.58M	108.61M
Total Debt	3.64B	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: Neutral
• Last Price: 14.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRAA, the sentiment is Neutral. The current price of 14.74 is above the 20-day moving average (MA) of 14.01, below the 50-day MA of 15.21, and below the 200-day MA of 17.01, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 63.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRAA.

Pra Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	77 Outperform	$7.17B	10.33	21.41%	7.46%	9.51%	29.38%
LC	69 Neutral	$2.08B	20.43	7.40%	―	9.68%	94.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WU	65 Neutral	$2.82B	3.85	97.70%	10.33%	-2.51%	17.47%
ALLY	56 Neutral	$11.90B	23.26	4.25%	3.06%	-6.89%	-33.20%
UPST	48 Neutral	$3.67B	169.45	4.81%	―	73.29%	―
PRAA	46 Neutral	$529.64M	―	-31.97%	―	13.79%	-899.50%

Pra Group Corporate Events

PRA Group’s Earnings Call Reveals Mixed Financial Outlook

The recent earnings call for PRA Group Inc. painted a mixed picture of the company’s financial health and strategic direction. While there were notable achievements in cash collections and operational efficiency, these were offset by a significant noncash goodwill impairment charge and underperformance in certain U.S. vintages. However, the company’s strategic execution and improvements in European markets offer a promising outlook.

PRA Group Reports Q3 2025 Financial Results

PRA Group, Inc., a global leader in acquiring and collecting nonperforming loans, operates in the financial services sector, focusing on returning capital to banks and other creditors across the Americas, Europe, and Australia.

PRA Group Reports Q3 2025 Results Amid Goodwill Impairment

PRA Group reported its third quarter 2025 results, highlighting a 13.7% increase in total cash collections to $542.2 million. Despite a net loss of $408 million due to a $413 million non-cash goodwill impairment charge, the company achieved an adjusted net income of $21 million. The impairment charge, linked to a European acquisition, did not impact operations or portfolio valuations. The company continues to focus on strategic priorities, including cost efficiency and IT modernization, while achieving a 27% increase in U.S. legal cash collections.

The most recent analyst rating on (PRAA) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Pra Group stock, see the PRAA Stock Forecast page.

PRA Group Completes €300 Million Senior Notes Offering

On September 30, 2025, PRA Group Europe Holding II S.à r.l., a subsidiary of PRA Group, Inc., completed a private offering of €300 million in Senior Notes due 2032, exempt from the Securities Act registration. The proceeds will be used to repay outstanding borrowings under its North American and European revolving credit facilities, without reducing the borrowing commitment amounts, potentially impacting the company’s financial flexibility and debt management strategy.

The most recent analyst rating on (PRAA) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Pra Group stock, see the PRAA Stock Forecast page.

PRA Group Announces €300M Senior Notes Offering

On September 24, 2025, PRA Group, Inc. announced that its subsidiary, PRA Group Europe Holding II S.à r.l., priced an offering of €300 million in senior notes due 2032. The proceeds from this offering will be used to repay outstanding borrowings under the company’s North American and European revolving credit facilities, potentially impacting its financial leverage and operational flexibility.

The most recent analyst rating on (PRAA) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Pra Group stock, see the PRAA Stock Forecast page.