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PRA Group

DB:POV1
Snowflake Description

Reasonable growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
POV1
DB
$1B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
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 and Europe. The last earnings update was 28 days ago. More info.


Add to Portfolio Compare Print
  • PRA Group has significant price volatility in the past 3 months.
POV1 Share Price and Events
7 Day Returns
11.5%
DB:POV1
6%
Europe Consumer Finance
7.3%
DE Market
1 Year Returns
5.4%
DB:POV1
-48.3%
Europe Consumer Finance
-17.7%
DE Market
POV1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PRA Group (POV1) 11.5% -18.2% -22.7% 5.4% -18.3% -50.5%
Europe Consumer Finance 6% -34.5% -40.3% -48.3% -64.4% -63.3%
DE Market 7.3% -17.9% -25.8% -17.7% -25.6% -29%
1 Year Return vs Industry and Market
  • POV1 outperformed the Consumer Finance industry which returned -48.3% over the past year.
  • POV1 outperformed the Market in Germany which returned -17.7% over the past year.
Price Volatility
POV1
Industry
5yr Volatility vs Market

Value

 Is PRA Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PRA Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PRA Group.

DB:POV1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $31.96 * 8%
$2.57
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $31.96
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:POV1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.586 (1 + (1- 21%) (227.61%))
1.428
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.43
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.428 * 5.44%)
7.38%

Discounted Cash Flow Calculation for DB:POV1 using Excess Returns Model Model

The calculations below outline how an intrinsic value for PRA Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:POV1 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8% – 7.38%) * $31.96)
$0.21
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.21 / (7.38% - -0.39%)
$2.70
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $31.96 + $2.70
$34.66
DB:POV1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:POV1 represents 0.89839x of NasdaqGS:PRAA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89839x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 34.66 x 0.89839
€31.14
Value per share (EUR) From above. €31.14
Current discount Discount to share price of €25.20
= -1 x (€25.20 - €31.14) / €31.14
19.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price PRA Group is available for.
Intrinsic value
19%
Share price is €25.2 vs Future cash flow value of €31.14
Current Discount Checks
For PRA Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PRA Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • PRA Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PRA Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PRA Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:POV1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $1.90
NasdaqGS:PRAA Share Price ** NasdaqGS (2020-03-30) in USD $28.05
Europe Consumer Finance Industry PE Ratio Median Figure of 27 Publicly-Listed Consumer Finance Companies 5.55x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PRA Group.

DB:POV1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PRAA Share Price ÷ EPS (both in USD)

= 28.05 ÷ 1.90

14.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PRA Group is overvalued based on earnings compared to the Europe Consumer Finance industry average.
  • PRA Group is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does PRA Group's expected growth come at a high price?
Raw Data
DB:POV1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
23.8%per year
Europe Consumer Finance Industry PEG Ratio Median Figure of 19 Publicly-Listed Consumer Finance Companies 0.41x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

DB:POV1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.78x ÷ 23.8%

0.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PRA Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on PRA Group's assets?
Raw Data
DB:POV1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $25.75
NasdaqGS:PRAA Share Price * NasdaqGS (2020-03-30) in USD $28.05
Europe Consumer Finance Industry PB Ratio Median Figure of 42 Publicly-Listed Consumer Finance Companies 0.71x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.43x
DB:POV1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PRAA Share Price ÷ Book Value per Share (both in USD)

= 28.05 ÷ 25.75

1.09x

* Primary Listing of PRA Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PRA Group is overvalued based on assets compared to the Europe Consumer Finance industry average.
X
Value checks
We assess PRA Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. PRA Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is PRA Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PRA Group expected to grow at an attractive rate?
  • PRA Group's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • PRA Group's earnings growth is expected to exceed the Germany market average.
  • PRA Group's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:POV1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:POV1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 23.8%
DB:POV1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 8.3%
Europe Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 13%
Europe Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:POV1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:POV1 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,323 165 1
2021-12-31 1,202 311 162 4
2020-12-31 1,117 264 128 5
2020-03-30
DB:POV1 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,017 133 86
2019-09-30 985 83 74
2019-06-30 961 81 59
2019-03-31 930 61 60
2018-12-31 908 81 66
2018-09-30 882 85 140
2018-06-30 861 61 145
2018-03-31 843 17 137
2017-12-31 828 15 164
2017-09-30 773 -15 58
2017-06-30 790 8 76
2017-03-31 815 125 101

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PRA Group's earnings are expected to grow significantly at over 20% yearly.
  • PRA Group's revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:POV1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from PRA Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:POV1 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 3.59 3.59 3.59 1.00
2021-12-31 3.55 4.50 3.05 4.00
2020-12-31 2.81 3.55 2.42 5.00
2020-03-30
DB:POV1 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 1.90
2019-09-30 1.63
2019-06-30 1.30
2019-03-31 1.32
2018-12-31 1.45
2018-09-30 3.08
2018-06-30 3.21
2018-03-31 3.02
2017-12-31 3.60
2017-09-30 1.26
2017-06-30 1.65
2017-03-31 2.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • PRA Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess PRA Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PRA Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has PRA Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PRA Group's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PRA Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • PRA Group's 1-year earnings growth exceeds its 5-year average (31.4% vs -18.7%)
  • PRA Group's earnings growth has exceeded the Europe Consumer Finance industry average in the past year (31.4% vs 17.9%).
Earnings and Revenue History
PRA Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PRA Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:POV1 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,017.08 86.16 681.09
2019-09-30 984.69 73.76 676.69
2019-06-30 960.56 58.72 669.76
2019-03-31 930.03 59.68 645.13
2018-12-31 908.26 65.56 622.81
2018-09-30 882.41 139.54 591.58
2018-06-30 860.94 145.17 604.15
2018-03-31 843.08 137.25 592.86
2017-12-31 828.21 164.32 538.71
2017-09-30 772.57 57.75 460.26
2017-06-30 790.13 76.50 459.98
2017-03-31 814.94 101.28 429.78
2016-12-31 930.60 86.26 548.55
2016-09-30 905.51 143.72 486.00
2016-06-30 912.95 126.81 446.53
2016-03-31 921.69 141.77 474.59
2015-12-31 942.02 167.93 472.17
2015-09-30 962.56 173.95 513.07
2015-06-30 972.11 207.72 516.64
2015-03-31 932.25 193.80 495.87
2014-12-31 880.97 176.51 490.51
2014-09-30 815.09 175.29 454.44
2014-06-30 773.88 171.46 421.53
2014-03-31 759.50 177.55 408.46
2013-12-31 735.14 175.31 389.81
2013-09-30 704.53 165.34 379.34
2013-06-30 657.29 151.32 363.76
2013-03-31 622.21 139.73 349.09

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • PRA Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • PRA Group used its assets less efficiently than the Europe Consumer Finance industry average last year based on Return on Assets.
  • PRA Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PRA Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PRA Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is PRA Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PRA Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PRA Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • PRA Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of PRA Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PRA Group Company Filings, last reported 2 months ago.

DB:POV1 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,227.01 2,826.23 120.10
2019-09-30 1,150.85 2,592.85 90.02
2019-06-30 1,155.79 2,636.40 106.25
2019-03-31 1,132.24 2,594.21 102.89
2018-12-31 1,130.30 2,473.66 99.47
2018-09-30 1,154.70 2,194.69 115.86
2018-06-30 1,145.81 2,134.00 72.48
2018-03-31 1,185.04 2,150.87 103.97
2017-12-31 1,150.25 2,171.29 120.52
2017-09-30 1,072.50 1,964.21 113.75
2017-06-30 1,013.71 1,900.76 92.76
2017-03-31 989.22 1,711.71 82.11
2016-12-31 925.61 1,786.93 94.29
2016-09-30 987.98 1,820.66 91.79
2016-06-30 935.18 1,916.92 117.07
2016-03-31 908.74 1,899.73 79.44
2015-12-31 839.75 1,718.73 71.37
2015-09-30 901.42 1,656.52 69.11
2015-06-30 897.88 1,504.27 70.19
2015-03-31 817.32 1,480.88 53.70
2014-12-31 902.22 1,485.84 77.07
2014-09-30 959.86 1,428.25 70.30
2014-06-30 952.26 448.79 270.53
2014-03-31 910.22 450.28 191.82
2013-12-31 869.48 451.78 162.00
2013-09-30 826.98 452.23 108.71
2013-06-30 802.23 413.77 43.46
2013-03-31 761.33 371.16 39.11
  • PRA Group's level of debt (230.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (164.9% vs 230.3% today).
  • Debt is not well covered by operating cash flow (4.7%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess PRA Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PRA Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is PRA Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from PRA Group dividends.
If you bought €2,000 of PRA Group shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate PRA Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate PRA Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:POV1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Europe Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 6.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 1%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:POV1 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2020-03-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as PRA Group has not reported any payouts.
  • Unable to verify if PRA Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of PRA Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as PRA Group has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess PRA Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PRA Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PRA Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of PRA Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin Stevenson
COMPENSATION $3,920,953
AGE 54
TENURE AS CEO 2.8 years
CEO Bio

Mr. Kevin P. Stevenson co-founded PRA Group, Inc. (Formerly known as Portfolio Recovery Associates, Inc.) in 1996 and has been its President since August 2016 and Chief Executive Officer since June 1, 2017. Mr. Stevenson served as an Interim Chief Financial Officer of PRA Group, Inc. until August 10, 2016. He served as Chief Administrative Officer at PRA Group, Inc. since August 2016. He served as an Interim Chief Financial & Administrative Officer and Treasurer of PRA Group, Inc. He served as the Chief Financial & Administrative Officer of PRA Group, Inc. since 1996 until August 10, 2015. Mr. Stevenson served as an Executive Vice President, Chief Financial Officer, Treasurer and Assistant Secretary of PRA Group, Inc. until August 10, 2015. Mr. Stevenson assumes oversight of PRA Group, Inc corporate information technology and human resources functions. Mr. Stevenson served as a Senior Vice President of PRA Group, Inc. Prior to Portfolio Recovery Associates, Mr. Stevenson served as Controller and Department Manager of Financial Control and Operations Support at HRSC from June 1994 to March 1996, where he supervised a department of approximately 30 employees. Prior to joining HRSC, he served as Controller of Regional Processing Center of Household Bank in Worthington, Ohio, where he also managed the collections, technology, research and ATM departments. While at Household Bank, Mr. Stevenson participated in eight bank acquisitions and numerous branch acquisitions or divestitures. He serves as a Director of PRA Group, Inc Since 2015. Mr. Stevenson is a Certified Public Accountant and received his B.S.B.A. with major in Accounting from the Ohio State University.

CEO Compensation
  • Kevin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Kevin's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the PRA Group management team in years:

4.2
Average Tenure
53
Average Age
  • The tenure for the PRA Group management team is about average.
Management Team

Kevin Stevenson

TITLE
Founder
COMPENSATION
$4M
AGE
54
TENURE
2.8 yrs

Pete Graham

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
53
TENURE
3.6 yrs

Steve Roberts

TITLE
Executive VP & Global Operations Officer
COMPENSATION
$2M
AGE
57

Chris Lagow

TITLE
Executive VP & General Counsel
COMPENSATION
$1M
AGE
45
TENURE
4.2 yrs

Chris Graves

TITLE
Executive Vice President of Global Investment & Analytics Officer
COMPENSATION
$2M
AGE
50
TENURE
14.2 yrs

Steve Fredrickson

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
59
TENURE
24.2 yrs

Chris Burroughs

TITLE
Chief Technology Officer
TENURE
3.9 yrs

Darby Schoenfeld

TITLE
Vice President of Investor Relations

Laura White

TITLE
Executive VP
AGE
48
TENURE
5.9 yrs

Elizabeth Kersey

TITLE
Vice President of Communications & Public Policy
Board of Directors Tenure

Average tenure and age of the PRA Group board of directors in years:

5.7
Average Tenure
59.5
Average Age
  • The tenure for the PRA Group board of directors is about average.
Board of Directors

Steve Fredrickson

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
59
TENURE
18 yrs

John Fain

TITLE
Independent Director
COMPENSATION
$212K
AGE
70
TENURE
10 yrs

Kevin Stevenson

TITLE
Founder
COMPENSATION
$4M
AGE
54
TENURE
4.6 yrs

Jim Nussle

TITLE
Independent Director
COMPENSATION
$206K
AGE
58
TENURE
6.8 yrs

Marge Connelly

TITLE
Independent Director
COMPENSATION
$125K
AGE
57
TENURE
2.2 yrs

Vik Atal

TITLE
Independent Director
COMPENSATION
$221K
AGE
63
TENURE
4.6 yrs

Lance Weaver

TITLE
Lead Director
COMPENSATION
$222K
AGE
64
TENURE
2.2 yrs

Scott Tabakin

TITLE
Independent Director
COMPENSATION
$218K
AGE
60
TENURE
15.4 yrs

Penny Kyle

TITLE
Independent Director
COMPENSATION
$206K
AGE
71
TENURE
14.4 yrs

Geir Olsen

TITLE
Independent Director
COMPENSATION
$192K
AGE
46
TENURE
4.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess PRA Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PRA Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

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 and Europe. It is involved in the acquisition of accounts that are primarily the unpaid obligations of individuals owed to credit grantors, 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, telecommunication providers, retailers, utilities, automobile finance companies, student loan companies, and other debt owners. 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 founded in 1996 and is headquartered in Norfolk, Virginia.

Details
Name: PRA Group, Inc.
POV1
Exchange: DB
Founded: 1996
$1,154,686,559
45,416,258
Website: http://www.pragroup.com
Address: PRA Group, Inc.
120 Corporate Boulevard,
Norfolk,
Virginia, 23502,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PRAA Common Stock Nasdaq Global Select US USD 08. Nov 2002
DB POV1 Common Stock Deutsche Boerse AG DE EUR 08. Nov 2002
Number of employees
Current staff
Staff numbers
4,412
PRA Group employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 23:53
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/25
Last earnings filing: 2020/03/02
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.