Propel Holdings Inc (PRL) AI Stock Analysis

• Market Cap: C$1.51B
• Dividend Yield: 2.55%
• Average Volume (3M): 119.53K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.99
• Revenue Growth: 46.36%
• EPS Growth: 64.29%
• Country: CA
• Employees: 620
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): 0.76
• Shares Outstanding: 38,907,715
• 10 Day Avg. Volume: 149,646
• 30 Day Avg. Volume: 119,531
• PEG Ratio: 0.15
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.08
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.16
• Enterprise Value/Ebitda: 1.07
• 1Y Price Target: C$42.60
• Price Target Upside: 9.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• Price Target: C$42.00 ▲(8.22%Upside)

Propel Holdings Inc. is showing strong growth potential driven by robust financial performance and strategic corporate events. The company's valuation is reasonable, though technical indicators suggest caution due to overbought conditions. The primary strengths are revenue growth, improved profit margins, and strategic corporate actions. However, challenges with cash flow generation and high debt levels require careful monitoring.

Positive Factors

Financial Performance

Propel delivered solid Q1 results, exceeding expectations on loan growth, PCLs, and EPS, highlighting the resilience of Propel’s customer base.

Growth Potential

Improving consumer confidence and strong borrowing demand could provide a loan book tailwind, helping Propel reach the upper end of its loan and revenue guidance for the year.

Negative Factors

Macroeconomic Risks

Management is acutely aware of the changing macro environment and tariff-related risks, which is expected to translate into selectiveness around origination and steady credit.

Share Price Performance

Propel’s shares have traded down over 35% YTD, creating a buying opportunity as Propel is only trading at 7.4x F25 P/E, below peers at 8.4x.

Propel Holdings Inc Business Overview & Revenue Model

Company Description

Propel Holdings Inc. operates as an online financial technology company. The company's online lending platform facilitates access to credit products, such as installment loans and lines of credit under the MoneyKey and CreditFresh brands to American consumers. It also offers marketing, analytics, and loan servicing services. Propel Holdings Inc. was incorporated in 2011 and is headquartered in Toronto, Canada.

How the Company Makes Money

Propel Holdings Inc. generates revenue primarily through the interest and fees charged on the loans it provides to consumers. The company leverages its technology-driven platforms to offer personal loans and credit products, catering to individuals who may not have access to traditional banking services. Propel's revenue model is largely dependent on the volume and value of loans issued, and it benefits from repeat customers who seek financial products. The company may also engage in partnerships with other financial institutions to expand its reach and enhance its service offerings, contributing to its earnings.

Propel Holdings Inc Financial Statement Overview

Summary

Propel Holdings Inc shows strong revenue growth and profitability improvements with a significant increase in revenue from $64.58M in 2019 to $416.02M in 2024. The net profit margin improved to 11.14% from 3.09%, reflecting enhanced efficiency. However, challenges include negative cash flow and high debt levels, which require careful management.

Income Statement

Propel Holdings Inc has shown impressive revenue growth over the years, with a significant increase from $64.58M in 2019 to $416.02M in 2024. The gross profit margin is consistently high at 100%, indicating strong pricing power and cost management. However, the company reported no EBIT or EBITDA for 2024, which could indicate increasing operational costs or strategic reinvestments impacting profits. The net profit margin improved to 11.14% in 2024 from 3.09% in 2019, reflecting enhanced efficiency in converting revenues into net income.

Balance Sheet

The debt-to-equity ratio has remained relatively stable, reflecting prudent financial management though it is on the higher side, posing potential risks if not managed carefully. The equity ratio improved to 38.13% in 2024 from a low of 4.46% in 2019, indicating stronger financial stability. Return on equity (ROE) stands at 22.07% in 2024, showcasing effective use of equity to generate profits. However, the high level of debt suggests risk if earnings do not sustain growth.

Cash Flow

The company's free cash flow has been consistently negative, raising concerns about its ability to generate cash independently from operations. The operating cash flow to net income ratio is negative, indicating that net income does not translate effectively into cash flow. Despite this, Propel Holdings has managed to secure financing to support its cash needs, evidenced by strong financing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	482.30M	447.87M	316.70M	226.73M	123.13M	69.07M
Gross Profit	287.83M	416.02M	131.99M	216.57M	123.13M	69.07M
EBITDA	88.59M	68.09M	42.21M	30.66M	0.00	11.07M
Net Income	56.75M	46.38M	27.78M	15.13M	6.56M	7.33M
Balance Sheet
Total Assets	559.52M	551.01M	344.26M	256.68M	149.50M	79.05M
Cash, Cash Equivalents and Short-Term Investments	29.15M	20.50M	13.75M	7.66M	7.24M	5.25M
Total Debt	273.71M	274.29M	201.52M	151.57M	50.05M	52.83M
Total Liabilities	326.61M	340.89M	242.74M	175.04M	74.17M	70.64M
Stockholders Equity	232.91M	210.11M	101.52M	81.64M	75.33M	8.42M
Cash Flow
Free Cash Flow	-34.83M	-61.13M	-32.39M	-90.59M	-54.60M	-17.55M
Operating Cash Flow	-27.81M	-54.84M	-26.95M	-85.32M	-51.83M	-15.42M
Investing Cash Flow	-72.63M	-71.90M	-5.43M	-5.27M	-2.76M	-2.13M
Financing Cash Flow	120.58M	134.83M	38.48M	91.01M	56.59M	16.59M

Propel Holdings Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PRL, the sentiment is Positive. The current price of 38.81 is above the 20-day moving average (MA) of 35.14, above the 50-day MA of 32.35, and above the 200-day MA of 32.25, indicating a bullish trend. The MACD of 1.77 indicates Negative momentum. The RSI at 72.21 is Negative, neither overbought nor oversold. The STOCH value of 81.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PRL.

Propel Holdings Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRL	78 Outperform	C$1.51B	17.93	32.69%	2.55%	46.36%	64.29%
Sector *	61 Neutral	C$14.67B	6.14	20.17%	5.70%	26.93%	-38.21%
LRCDF		$999.69M	10.49	5.38%	6.10%	―	―
OLY	78 Outperform	C$287.56M	12.20	59.15%	6.03%	1.49%	-3.65%
DLCG	63 Neutral	C$690.59M	37.65	-151.96%	1.82%	35.48%	-4412.25%
ACD	50 Neutral	C$30.73M	―	-6.23%	―	-4.92%	68.05%
EHMEF		$2.00B	11.17	23.56%	3.37%	―	―

Propel Holdings Inc Corporate Events

Propel Holdings Reports Record Q1 2025 Results and Increases Dividend

Propel Holdings Inc. reported record financial results for Q1 2025, with significant increases in revenue, net income, and other key financial metrics. The company announced a 9% increase in its annualized dividend, marking the eighth increase since 2023. Propel’s growth is driven by strong consumer demand, particularly from those underserved by traditional credit markets, and the company’s AI-powered technology platform. The tightening of underwriting by traditional financial institutions has provided Propel with an opportunity to expand its market reach, positioning the company for continued growth in 2025.

Propel Holdings Enhances Credit Facilities, Reduces Capital Costs

Propel Holdings Inc. has announced an increase and amendment to its CreditFresh credit facility, raising it to $400 million, and a refinancing of its MoneyKey credit facility, both resulting in a lower cost of capital. The CreditFresh facility will now bear interest at SOFR plus 620 basis points, while the MoneyKey facility will bear interest at SOFR plus 425 basis points. These changes are expected to lower Propel’s cost of capital by approximately 150 basis points annually, enhancing liquidity to support growth targets. The company’s strong growth in the US loan portfolio, driven by expanding bank partnerships and increased demand from underserved markets, underscores its potential to become a global leader in providing credit to underserved consumers.