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PROG Holdings, Inc. (PRG) Stock Fundamental Analysis & AI Rating 2026

PRG NYSE Services-Equipment Rental & Leasing, NEC GA CIK: 0001808834
Updated This Month • Analysis: May 6, 2026 • SEC Data: 2026-03-31
Combined AI Rating
SELL
72% Confidence
N/A
SELL
72% Conf
Pending
Analysis scheduled

📊 PRG Key Takeaways

Revenue: $742.7M
Net Margin: 4.9%
Free Cash Flow: $168.6M
Current Ratio: N/A
Debt/Equity: 1.21x
EPS: $0.89
AI Rating: SELL with 72% confidence
PROG Holdings, Inc. (PRG) receives a SELL rating with 72% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $742.7M, net profit margin of 4.9%, and return on equity (ROE) of 4.7%, PROG Holdings, Inc. demonstrates mixed fundamentals in the Industrial sector. Below is our complete PRG stock analysis for 2026.

Is PROG Holdings, Inc. (PRG) a Good Investment?

Claude

PROG Holdings faces significant profitability erosion with net income declining 25.6% YoY despite flat revenue growth, indicating severe margin compression in a capital-heavy equipment rental business. Elevated leverage (1.21x debt/equity) combined with weak returns on capital (ROE 4.7%, ROA 1.8%) and limited cash reserves ($69.4M) create financial inflexibility amid deteriorating earnings, outweighing the benefit of strong free cash flow generation.

Why Buy PROG Holdings, Inc. Stock? PRG Key Strengths

Claude
  • + Exceptional free cash flow generation at 22.7% FCF margin ($168.6M) provides capital deployment flexibility
  • + Minimal capital intensity with only $3.1M annual CapEx preserves cash for debt service
  • + Adequate interest coverage at 3.6x supports near-term debt obligations despite profitability decline

PRG Stock Risks: PROG Holdings, Inc. Investment Risks

Claude
  • ! Severe earnings deterioration (net income -25.6%, EPS -20.8%) with zero revenue growth indicates structural margin compression issues
  • ! Elevated leverage (1.21x debt/equity) constrains financial flexibility with only $69.4M cash against $936.1M long-term debt
  • ! Weak capital returns (ROE 4.7%, ROA 1.8%) and compressed net margin (4.9%) reflect poor asset productivity

Key Metrics to Watch

Claude
  • * Quarterly operating margin trend and revenue growth acceleration needs
  • * Debt reduction trajectory relative to operating cash flow generation
  • * Return on equity and return on assets recovery toward industry benchmarks

PROG Holdings, Inc. (PRG) Financial Metrics & Key Ratios

Revenue
$742.7M
Net Income
$36.1M
EPS (Diluted)
$0.89
Free Cash Flow
$168.6M
Total Assets
$2.0B
Cash Position
$69.4M

💡 AI Analyst Insight

The 22.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

PRG Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 8.8%
Net Margin 4.9%
ROE 4.7%
ROA 1.8%
FCF Margin 22.7%

PRG vs Industrial Sector: How PROG Holdings, Inc. Compares

How PROG Holdings, Inc. compares to Industrial sector averages

Net Margin
PRG 4.9%
vs
Sector Avg 10.0%
PRG Sector
ROE
PRG 4.7%
vs
Sector Avg 15.0%
PRG Sector
Current Ratio
PRG 0.0x
vs
Sector Avg 1.8x
PRG Sector
Debt/Equity
PRG 1.2x
vs
Sector Avg 0.7x
PRG Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is PROG Holdings, Inc. Stock Overvalued? PRG Valuation Analysis 2026

Based on fundamental analysis, PROG Holdings, Inc. shows some fundamental concerns relative to the Industrial sector in 2026.

Return on Equity
4.7%
Sector avg: 15%
Net Profit Margin
4.9%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.21x
Sector avg: 0.7x

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.

PROG Holdings, Inc. Balance Sheet: PRG Debt, Cash & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
1.21x
Debt/Assets
62.1%
Interest Coverage
3.55x
Long-term Debt
$936.1M

PRG Revenue & Earnings Growth: 5-Year Financial Trend

PRG 5-year financial data: Year 2021: Revenue $2.7B, Net Income $31.5M, EPS $0.47. Year 2022: Revenue $2.7B, Net Income -$61.5M, EPS $-0.90. Year 2023: Revenue $2.7B, Net Income $243.6M, EPS $3.67. Year 2024: Revenue $2.6B, Net Income $98.7M, EPS $1.90. Year 2025: Revenue $2.4B, Net Income $138.8M, EPS $2.98.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: PROG Holdings, Inc.'s revenue has declined by 10% over the 5-year period, indicating business contraction. The most recent EPS of $2.98 reflects profitable operations.

PRG Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
22.7%
Free cash flow / Revenue

PRG Quarterly Earnings & Performance

Quarterly financial performance data for PROG Holdings, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $3.7M $34.7M $0.83

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

PROG Holdings, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$171.7M
Cash generated from operations
Capital Expenditures
$3.1M
Investment in assets
Dividends Paid
$5.6M
Returned to shareholders

PRG SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for PROG Holdings, Inc. (CIK: 0001808834)

📋 Recent SEC Filings

Date Form Document Action
May 8, 2026 4 xslF345X06/wk-form4_1778276480.xml View →
May 8, 2026 4 xslF345X06/wk-form4_1778276327.xml View →
May 8, 2026 4 xslF345X06/wk-form4_1778276262.xml View →
May 8, 2026 4 xslF345X06/wk-form4_1778276204.xml View →
May 8, 2026 4 xslF345X06/wk-form4_1778276119.xml View →

Frequently Asked Questions about PRG

What is the AI rating for PRG?

PROG Holdings, Inc. (PRG) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PRG's key strengths?

Claude: Exceptional free cash flow generation at 22.7% FCF margin ($168.6M) provides capital deployment flexibility. Minimal capital intensity with only $3.1M annual CapEx preserves cash for debt service.

What are the risks of investing in PRG?

Claude: Severe earnings deterioration (net income -25.6%, EPS -20.8%) with zero revenue growth indicates structural margin compression issues. Elevated leverage (1.21x debt/equity) constrains financial flexibility with only $69.4M cash against $936.1M long-term debt.

What is PRG's revenue and growth?

PROG Holdings, Inc. reported revenue of $742.7M.

Does PRG pay dividends?

PROG Holdings, Inc. pays dividends, with $5.6M distributed to shareholders in the trailing twelve months.

Where can I find PRG SEC filings?

Official SEC filings for PROG Holdings, Inc. (CIK: 0001808834) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PRG's EPS?

PROG Holdings, Inc. has a diluted EPS of $0.89.

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 rating reflects both perspectives for balanced insights.

Is PRG a good stock to buy right now?

Based on our AI fundamental analysis in May 2026, PROG Holdings, Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is PRG stock overvalued or undervalued?

Valuation metrics for PRG: ROE of 4.7% (sector avg: 15%), net margin of 4.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

Should I buy PRG stock in 2026?

Our dual AI analysis gives PROG Holdings, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PRG's free cash flow?

PROG Holdings, Inc.'s operating cash flow is $171.7M, with capital expenditures of $3.1M. FCF margin is 22.7%.

How does PRG compare to other Industrial stocks?

Vs Industrial sector averages: Net margin 4.9% (avg: 10%), ROE 4.7% (avg: 15%), current ratio N/A (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 6, 2026 | Data as of: 2026-03-31 | Powered by Claude AI