Propel Holdings Inc (PRL) AI Stock Analysis

• Market Cap: C$996.45M
• Dividend Yield: 3.06%
• Average Volume (3M): 207.66K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.23
• Revenue Growth: 38.93%
• EPS Growth: 38.14%
• Country: CA
• Employees: 620
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.53
• Shares Outstanding: 39,354,218
• 10 Day Avg. Volume: 273,213
• 30 Day Avg. Volume: 207,664
• PEG Ratio: 0.26
• Price to Book (P/B): 4.27
• Price to Sales (P/S): 2.00
• P/FCF Ratio: -14.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$37.29
• Price Target Upside: 52.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: C$30.00 ▲(22.40% Upside)

Propel Holdings Inc's overall stock score is driven by strong financial performance and strategic expansion plans, particularly the approval of a new banking subsidiary in Puerto Rico. The company's valuation metrics are attractive, and the recent earnings call provided positive insights into future growth. However, technical indicators suggest caution due to potential resistance levels, and the company must address cash flow challenges to sustain long-term growth.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion potential.

Market Expansion

Successful market expansion in the UK demonstrates Propel's ability to penetrate new markets, enhancing its competitive position and growth prospects.

Lending as a Service Growth

The rapid growth of the Lending as a Service program highlights Propel's innovative offerings and potential for scalable revenue streams, strengthening its business model.

Negative Factors

High Debt Levels

High debt levels can pose financial risks if not managed carefully, potentially impacting cash flow and limiting financial flexibility.

Negative Cash Flow

Consistently negative cash flow indicates potential challenges in sustaining operations without external financing, which could affect long-term viability.

Uptick in Delinquencies

An increase in delinquencies could signal rising credit risk, potentially affecting profitability and necessitating stricter credit controls.

Propel Holdings Inc Business Overview & Revenue Model

Company Description

Propel Holdings Inc (PRL) is a technology-driven financial services company that specializes in providing innovative payment solutions and credit products primarily to underserved consumers. Operating within the fintech sector, Propel focuses on delivering accessible financial services through its proprietary platforms, which include credit cards and personal loans. The company's mission is to empower individuals with the tools necessary for financial success, leveraging data analytics and technology to enhance the customer experience.

How the Company Makes Money

Propel Holdings generates revenue through multiple streams, primarily from interest income on loans and fees associated with its credit products. The company offers personal loans and credit cards, earning money from the interest charged on outstanding balances. Additionally, Propel earns revenue from origination fees and late payment fees charged to borrowers. The company also benefits from partnerships with various financial institutions and payment networks, which help broaden its service offerings and customer reach. By leveraging data analytics, Propel effectively manages risk and optimizes pricing strategies, contributing to its overall profitability.

Propel Holdings Inc Financial Statement Overview

Summary

Propel Holdings Inc shows robust revenue growth and profitability improvements over recent years, though it faces challenges with operational cash flow generation. The company's high debt levels need careful management to mitigate financial risks. Overall, Propel Holdings is on a positive trajectory with strong revenue and profit growth but must address cash flow weaknesses to ensure long-term financial health.

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	528.14M	447.87M	316.70M	226.73M	128.88M	73.59M
Gross Profit	237.32M	193.52M	131.99M	96.41M	68.11M	44.32M
EBITDA	87.14M	68.09M	42.21M	23.60M	10.98M	12.87M
Net Income	60.71M	46.38M	27.78M	15.13M	6.56M	7.33M
Balance Sheet
Total Assets	604.59M	551.01M	344.26M	256.68M	149.50M	79.05M
Cash, Cash Equivalents and Short-Term Investments	25.42M	20.50M	13.75M	7.66M	7.24M	5.25M
Total Debt	290.17M	274.29M	201.52M	151.57M	50.05M	52.83M
Total Liabilities	354.44M	340.89M	242.74M	175.04M	74.17M	70.64M
Stockholders Equity	250.16M	210.11M	101.52M	81.64M	75.33M	8.42M
Cash Flow
Free Cash Flow	-22.87M	-61.13M	-32.39M	-90.59M	-54.60M	-17.55M
Operating Cash Flow	-14.99M	-54.84M	-26.95M	-85.32M	-51.83M	-15.42M
Investing Cash Flow	-73.49M	-71.90M	-5.43M	-5.27M	-2.76M	-2.13M
Financing Cash Flow	102.08M	134.83M	38.48M	91.01M	56.59M	16.59M

Propel Holdings Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.51
• 50DMA: Positive
• 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 TSE:PRL, the sentiment is Negative. The current price of 24.51 is above the 20-day moving average (MA) of 23.82, above the 50-day MA of 24.18, and below the 200-day MA of 29.04, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 36.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	79 Outperform	C$996.45M	11.22	34.20%	3.06%	38.93%	38.14%
OLY	70 Neutral	C$287.56M	12.44	50.74%	6.42%	-2.76%	-12.20%
LB	68 Neutral	$1.78B	14.09	5.11%	4.70%	-11.26%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GSY	63 Neutral	C$1.96B	8.71	18.88%	4.54%	13.69%	-16.06%
DLCG	50 Neutral	C$822.72M	-4.48	-137.87%	1.53%	36.52%	-1243.96%
ACD	44 Neutral	C$25.68M	-5.30	-8.15%	―	-19.88%	26.76%

Propel Holdings Inc Corporate Events

Propel Holdings Gains Approval for New Banking Subsidiary in Puerto Rico

Propel Holdings Inc. has received regulatory approval to establish Propel International Bank, Inc. in Puerto Rico, marking a significant expansion in its fintech-bank partnership platform. Propel Bank will focus on consumer lending services and aims to provide strategic benefits such as product diversification and expanded market access. The bank will operate under a highly regulated environment, leveraging Propel’s AI technology, and is expected to be operational in the first half of 2026. This development positions Propel to enhance its financial ecosystem, benefiting partners, shareholders, and underserved consumers.

Propel Holdings Achieves Record Q3 Results and Boosts Dividend

Propel Holdings Inc. announced record financial results for Q3 2025, with a 30% increase in revenue to $152.1 million and a 43% rise in net income to $15.0 million. The company also declared an 8% increase in its annualized dividend, marking its ninth consecutive dividend increase. Propel’s strategic focus on disciplined underwriting and leveraging AI technology has enabled it to achieve profitable growth and maintain stable credit performance amid a dynamic macroeconomic environment. The company is well-positioned for future growth, with a robust business development pipeline and investments in infrastructure and technology.