PRA Group Stock Price and Value Analysis

Should you buy PRA Group stock? (NasdaqGS:PRAA). Let's see how it does in our automated value investing analysis system.

PRAA Free Cash Flow Trend

Free Cash Flow trendline for PRAA
Free Cash Flow trendline for PRA Group

Based on historical returns, we believe that PRA Group can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantagesNeutral
  • This company is solid.
  • This stock is on sale.
  • This company has stable growth.
  • This company is making money at a modest rate.
  • This company pays no dividend.

Inside the PRAA Numbers

PRAA Price
(PRA Group stock price per share)
$39.99
[?] PRAA Fair Price
(based on intrinsic value)
$48.60
[?] PRAA Safety Price (based on a variable margin of safety) $31.59
[?] PE Ratio versus Sector 7% lower than other Financial stocks
[?] PE Ratio versus Industry 32% lower than other Credit Services stocks
[?] Cash Yield 9.41%
[?] Free Cash Flow Jitter 20%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 3,593,415 shares shorted. With 44,737,279 shares available for purchase and an average trading volume over the past 10 trading days of 191,900, it would take at least 18.725 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is PRA Group Stock on Sale?

We believe that PRA Group may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

PRA Group looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.

Should You Buy PRAA Stock?

Does PRA Group have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.