PRA Group, Inc.

Valuation Analysis

About the Company

PRA Group, Inc., a financial services company, engages in the purchase, collection, and management of nonperforming loan portfolios in the United States, Europe, the United Kingdom, South America, Canada, and Australia. The company purchases loans from credit originators who have chosen not to pursue, or have been unsuccessful in collecting, the full balance owed. It also purchases loans in situations where the customer is involved in a bankruptcy or similar proceeding; and purchase and provide fee-based services for class action claims recoveries. In addition, the company is involved in core and insolvency nonperforming loans include general purpose and private label credit cards, consumer loans, auto loans, overdrafts and small business loans. The company was formerly known as Portfolio

PRA Group, Inc. Stock at a Glance

PRA Group, Inc. (PRAA) is currently trading at $15.69 with a market capitalization of $598.4M. The 52-week range spans from $10.25 to $22.55; the current price is 30.4% below the yearly high. Year-over-year revenue growth stands at +16.7%.

💰 Dividend

PRA Group, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

1 analysts rate PRA Group, Inc. (PRAA) on consensus: None. The average price target is $26.00, implying +65.71% from the current price. Analyst price targets range from $26.00 to $26.00.

PRA Group, Inc.: The Investment Case in Detail

PRA Group, Inc. (PRAA) operates in the Financial Services — specifically Credit Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 16.7% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 711.1% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. With a gross margin near 100%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns.

The Bear Case

Net margins remain negative, meaning every euro of revenue is still producing losses — the path to profitability is the central question for shareholders. The debt-to-equity ratio of 356.97% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

At a PEG of 5.82, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The analyst consensus price target implies 65.71% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to market-like volatility, higher leverage relative to equity.

Trading Data

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