PRA Group Inc (PRAA) Files 10-K for the Fiscal Year Ended on December 31, 2017

GuruFocus.com

Wed, Feb 28, 2018, 7:48 PM

PRA Group Inc (PRAA) files its latest 10-K with SEC for the fiscal year ended on December 31, 2017. PRA Group Inc is a United States-based company that primarily acquires, collects, and processes nonperforming loans. The company generates the majority of its sales from the United States. PRA Group Inc has a market cap of $1.73 billion; its shares were traded at around $38.30 with a P/E ratio of 30.89 and P/S ratio of 2.31. PRA Group Inc had annual average EBITDA growth of 17.40% over the past ten years. GuruFocus rated PRA Group Inc the business predictability rank of 4.5-star.

Warning! GuruFocus has detected 9 Warning Signs with PRAA. Click here to check it out.
PRAA 15-Year Financial Data
The intrinsic value of PRAA
Peter Lynch Chart of PRAA

For the last quarter PRA Group Inc reported a revenue of $201.0 million, compared with the revenue of $222.0 million during the same period a year ago. For the latest fiscal year the company reported a revenue of $813.6 million, a decrease of 2% from the previous year. For the last five years PRA Group Inc had an average revenue growth rate of 5.9% a year.

The reported diluted earnings per share was $3.54 for the year, an increase of 93.4% from previous year. Over the last five years PRA Group Inc had an average EPS decline of 0.3% a year. The PRA Group Inc had a decent operating margin of 25.93%, compared with the operating margin of 26.27% a year before. The 10-year historical median operating margin of PRA Group Inc is 35.65%. The profitability rank of the company is 7 (out of 10).

At the end of the fiscal year, PRA Group Inc has the cash and cash equivalents of $120.5 million, compared with $94.3 million in the previous year. The long term debt was $2.2 billion, compared with $1.8 billion in the previous year. The interest coverage to the debt is at a comfortable level of 963.3. PRA Group Inc has a financial strength rank of 4 (out of 10).

At the current stock price of $38.30, PRA Group Inc is traded at 19.6% discount to its historical median P/S valuation band of $47.63. The P/S ratio of the stock is 2.31, while the historical median P/S ratio is 2.88. The intrinsic value of the stock is $25.04 a share, according to GuruFocus DCF Calculator. The stock lost 6.13% during the past 12 months.

For the complete 20-year historical financial data of PRAA, click here.

This article first appeared on GuruFocus.