📊 PRAA Key Takeaways
Is Pra Group Inc. (PRAA) a Good Investment?
PRA Group exhibits severe financial distress despite explosive 577% revenue growth, with interest coverage of only 0.5x indicating inability to service debt from operations. The catastrophic 427% decline in net income amid rising revenues, combined with extremely weak returns (ROE 2.8%, ROA 0.5%), suggests the revenue growth is not profitable and likely driven by acquisitions rather than operational improvements.
Pra Group Inc. Key Strengths (PRAA)
- Positive operating income of $103.3M with healthy 32.8% operating margin
- Positive free cash flow of $23.5M demonstrates some cash generation capability
- Debt-to-equity ratio of 0.76x is moderate and not at extreme leverage levels
PRAA Stock Risks: Pra Group Inc. Investment Risks
- Critical interest coverage ratio of 0.5x—operatingincome covers only half of interest expense, indicating severe debt servicing risk and potential default vulnerability
- Net income collapsed 427% YoY despite 577% revenue surge, signaling profitability crisis and non-operating losses or significant charges
- Abysmal returns on equity (2.8%) and assets (0.5%) with only 9% net margin despite strong 32.8% operating margin, indicating high non-operating expenses or financial costs
- Minimal cash reserves of $124.8M relative to $4.1B liabilities and $762.9M long-term debt
Key Metrics to Watch
- Interest coverage ratio trajectory—must improve above 1.5x to indicate debt sustainability
- Net income margin recovery and reconciliation with operating income strength
- Cash position and working capital adequacy relative to debt service obligations
- Operating cash flow sustainability and debt repayment schedule
Pra Group Inc. (PRAA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
PRAA Profit Margin, ROE & Profitability Analysis
PRAA vs Finance Sector: How Pra Group Inc. Compares
How Pra Group Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Pra Group Inc. Stock Overvalued? PRAA Valuation Analysis 2026
Based on fundamental analysis, Pra Group Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Pra Group Inc. Balance Sheet: PRAA Debt, Cash & Liquidity
PRAA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Pra Group Inc.'s revenue has declined by 80% over the 5-year period, indicating business contraction. The most recent EPS of $-2.13 indicates the company is currently unprofitable.
PRAA Revenue Growth, EPS Growth & YoY Performance
PRAA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $269.6M | $3.7M | $0.09 |
| Q3 2025 | $281.5M | $27.2M | $0.69 |
| Q2 2025 | $284.2M | $21.5M | $0.54 |
| Q1 2025 | $255.6M | $3.5M | $0.09 |
| Q3 2024 | $216.4M | -$12.3M | $-0.31 |
| Q2 2024 | $209.2M | -$3.8M | $-0.10 |
| Q1 2024 | $155.5M | $3.5M | $0.09 |
| Q3 2023 | $216.4M | -$12.3M | $-0.31 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Pra Group Inc. Dividends, Buybacks & Capital Allocation
PRAA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Pra Group Inc. (CIK: 0001185348)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PRAA
What is the AI rating for PRAA?
Pra Group Inc. (PRAA) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PRAA's key strengths?
Claude: Positive operating income of $103.3M with healthy 32.8% operating margin. Positive free cash flow of $23.5M demonstrates some cash generation capability.
What are the risks of investing in PRAA?
Claude: Critical interest coverage ratio of 0.5x—operatingincome covers only half of interest expense, indicating severe debt servicing risk and potential default vulnerability. Net income collapsed 427% YoY despite 577% revenue surge, signaling profitability crisis and non-operating losses or significant charges.
What is PRAA's revenue and growth?
Pra Group Inc. reported revenue of $314.5M.
Does PRAA pay dividends?
Pra Group Inc. does not currently pay dividends.
Where can I find PRAA SEC filings?
Official SEC filings for Pra Group Inc. (CIK: 0001185348) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PRAA's EPS?
Pra Group Inc. has a diluted EPS of $0.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PRAA's fundamental grade?
Based on our AI fundamental analysis in May 2026, Pra Group Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PRAA stock overvalued or undervalued?
Valuation metrics for PRAA: ROE of 2.8% (sector avg: 12%), net margin of 9.0% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is PRAA's AI grade for 2026?
Our dual AI analysis gives Pra Group Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PRAA's free cash flow?
Pra Group Inc.'s operating cash flow is $24.9M, with capital expenditures of $1.4M. FCF margin is 7.5%.
How does PRAA compare to other Finance stocks?
Vs Finance sector averages: Net margin 9.0% (avg: 25%), ROE 2.8% (avg: 12%), current ratio N/A (avg: 1.2).