Pra Group Inc (PRAA)

Price$19.02Cached quoteAs of 2026-09-05 02:57 UTC

AI: Undervalued

Price checkShares trade near two-thirds of accounting net worth and around five times plausible near-term earnings.

At the observed price the company was worth about $700 million, versus roughly $1.0 billion of shareholder equity, so investors pay about 70 cents per dollar of accounting net worth. First-half earnings of $2.24 per share annualize to about $4.50, putting the price near four to five times that run rate. Adding about $3.8 billion of debt, the business is valued near three times trailing adjusted EBITDA of $1.4 billion, a cash-profit measure. Reported earnings are negative only because of last autumn's one-time goodwill write-off. This supports an Undervalued opinion, contingent on European collection forecasts converting into cash.

Big picturePRA buys unpaid consumer loans cheaply, then collects for years, giving a long runway of future cash.

The company buys charged-off debts — bills banks gave up collecting — for cents on the dollar and collects them for years. Its pool of estimated remaining collections hit a record $8.9 billion, up 7% in a year, split mostly between Europe and the United States. Because this revenue depends on forecasts, profits swing: last autumn a stock-driven accounting test wiped out $413 million of goodwill, while this summer a European review raised projected collections by $349 million. Maintaining the pool requires roughly $1 billion of yearly purchases, funded mainly with debt, making results sensitive to credit availability and purchase prices.

Business strengthCash collections keep rising and comfortably cover running costs, though headline profit leans on forecast upgrades.

Second-quarter cash collections reached $559 million, up 4%, led by 26% growth in U.S. legal-channel collections and European gains; Europe has beaten collection forecasts for six straight years. Its cash efficiency ratio — the share of collections left after operating costs — ran at 61%. First-half net income doubled to $86 million. Caveats matter: roughly three-quarters of the quarter's upward revenue revision was estimate-based rather than cash received, Europe insolvency collections fell 28%, and interest on $3.8 billion of debt absorbs most pre-tax profit. Durable cash generation, not accounting estimates, is what services that debt and funds buybacks.

What could change the storyCheaper funding, shrinking share count, and falling leverage could lift the stock; missed European forecasts would hurt.

Management targets net debt near two-and-a-half times cash profit, down from almost three at the 2024 peak, and refinanced its $730 million European credit line with five extra years of maturity; no major debt comes due until early 2028. A $150 million buyback authorization followed $10 million of quarterly repurchases, and shares outstanding have fallen from about 45.6 million in 2020 to 37.6 million. The bull case is compounding collections with modest leverage and buybacks below net worth. The bear case is that revised European curves disappoint, forcing downward revenue adjustments while legal-collection costs climb — risks today's price anticipates.

AI: News

Q2 profit beats on Europe upgradeQuarterly profit far exceeded forecasts after a review lifted projected European collections by $349 million.

Earnings released earlier this month showed diluted earnings per share of $1.51 against analyst expectations near 52 cents, with revenue of $372 million topping estimates by roughly $59 million. The stock rose about 6% the following day and climbed further the day after, though attribution beyond the report itself is uncertain. The review added roughly $25 million of yearly portfolio income near term, supporting future reported revenue. Investors should note that most of the uplift reflects updated projections, so subsequent cash collections will test whether the optimism holds.

Board authorizes $150 million buybackDirectors approved a new $150 million repurchase program, signaling management views the shares as inexpensive.

Authorized days before the earnings release, the program has no expiration and succeeded smaller $10 million quarterly repurchases begun last year. Share count has dropped from about 45.6 million in 2020 to 37.6 million, quietly boosting each holder's claim on collections. Repurchases compete with loan purchases and debt reduction for capital, and credit-agreement covenants constrain timing, so execution pace matters more than the headline. Sustained buying near two-thirds of accounting net worth would compound per-share value; a slow crawl would suggest portfolio investment still earns more internally.

Goodwill write-off drove autumn lossA one-time $413 million accounting charge last autumn created a large loss without touching cash.

Disclosed last autumn, the non-cash charge erased nearly all goodwill — the premium paid for past acquisitions, mostly a European business bought in 2014 — after a sustained share-price decline triggered a required test. Excluding it, adjusted quarterly profit was about $21 million, and operations, portfolio values, and projected collections were unaffected. The charge cut book equity to roughly $1.0 billion, which sharpens today's price-to-net-worth math. It also illustrates a feedback loop: a depressed stock can force accounting write-downs even while underlying cash performance improves.

European credit line extendedLenders extended a $730 million European credit facility by five years, securing funding for loan purchases.

Announced in late spring alongside first-quarter results, the amendment kept the commitment size and pricing while pushing maturity out five years. Combined with roughly $1 billion of available capacity across facilities and no significant maturities before early 2028, it reduces refinancing risk for a business that borrows to buy loan portfolios. Cheaper, longer-dated funding directly protects returns on new purchases; a funding crunch would force passing on portfolios, shrinking future collections. The extension signals lender confidence in the collateral — projected collections — backing these loans.

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$1.20B	$1.11B	$802.6M	$966.5M	$14.7M	$9.7M	$15.8M	$14.9M	$24.9M	$77.4M	$942.0M	$881.0M	$735.1M	$592.8M	$458.9M	$372.7M	$281.1M	$263.3M
Research & development	—	—	—	—	—	—	—	—	—	—	—	—	—	$1.3M	$1.3M	$1.3M	—	—
Operating expenses	$1.23B	$774.8M	$702.1M	$680.7M	$720.7M	$715.7M	$745.4M	$689.6M	$602.6M	$612.4M	$631.7M	$538.9M	$437.6M	$376.7M	$282.1M	$242.8M	$200.5M	$178.4M
Operating income	−$30.3M	$339.7M	$100.5M	$285.8M	$375.0M	$349.7M	$247.7M	$185.3M	$213.7M	$219.8M	$310.3M	$342.1M	$297.5M	$216.1M	$178.0M	$129.9M	$80.6M	$84.8M
Operating margin	−2.52%	30.48%	12.52%	29.57%	2,551.17%	3,587.41%	1,570.72%	1,242.02%	857.82%	283.98%	32.94%	38.83%	40.47%	36.45%	38.79%	34.84%	28.68%	32.22%
EBITDA	−$21.5M	$350.3M	$113.6M	$300.7M	$390.1M	$365.3M	$263.6M	$200.4M	$229.1M	$237.9M	$326.5M	$355.7M	$307.2M	$224.8M	$186.1M	$137.1M	$87.1M	$92.3M
EBITDA margin	−1.79%	31.43%	14.15%	31.11%	2,653.89%	3,747.45%	1,671.55%	1,343.26%	919.63%	307.50%	34.66%	40.37%	41.79%	37.91%	40.56%	36.77%	30.99%	35.04%
Net income	−$305.1M	$70.6M	−$83.5M	$117.1M	$183.2M	$149.3M	$86.2M	$65.6M	$164.3M	$86.3M	$167.9M	$176.5M	$175.3M	$126.6M	$100.8M	$73.5M	$44.3M	$45.4M
Net profit margin	−25.39%	6.33%	−10.40%	12.12%	1,246.06%	1,532.00%	546.38%	439.55%	659.48%	111.47%	17.83%	20.04%	23.85%	21.36%	21.96%	19.71%	15.76%	17.23%
Basic EPSper basic share	-$7.79	$1.79	-$2.13	$2.96	$4.07	$3.28	$1.90	$1.45	$3.60	$1.86	$3.49	$3.53	$3.48	$2.48	$1.96	$1.46	$0.96	$0.99
Diluted EPSper diluted share	-$7.79	$1.79	-$2.13	$2.94	$4.04	$3.26	$1.89	$1.44	$3.59	$1.86	$3.47	$3.50	$3.45	$2.46	$1.95	$1.45	$0.96	$0.99

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

11.77%of listed shares

BlackRock, Inc.4.43M shares · Jun 30, 2026

View holders

Top 20 reported holders of PRAA
Holder	% owned
BlackRock, Inc.	11.77%4.43M shares
Topline Capital Management, LLC	10.21%3.85M shares
T. Rowe Price Investment Management, Inc.	8.01%3.01M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.38%1.65M shares
Global Alpha Capital Management Ltd.	4.18%1.57M shares
DIMENSIONAL FUND ADVISORS LP	3.61%1.36M shares
Assenagon Asset Management S.A.	3.20%1.2M shares
AMERICAN CENTURY COMPANIES INC	2.72%1.02M shares
GEODE CAPITAL MANAGEMENT, LLC	2.68%1.01M shares
STATE STREET CORP	2.52%946.98K shares
WELLINGTON MANAGEMENT GROUP LLP	2.20%827.72K shares
D. E. Shaw & Co., Inc.	2.08%783.5K shares
MILLENNIUM MANAGEMENT LLC	2.00%753.6K shares
JACOBS LEVY EQUITY MANAGEMENT, INC	1.99%749.18K shares
JANE STREET GROUP, LLC	1.88%705.92K shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.79%672.07K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.70%641.6K shares
ROYAL BANK OF CANADA	1.65%621.7K shares
CITADEL ADVISORS LLC	1.54%581.09K shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.29%485.27K shares

Percentages use 37.65M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys6$1.09M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Nov 6, 2025Form 4	Olsen GeirDirector	BuyCommon Stock · indirect	15.0K	$14.15	$212.3K	58.9K
May 7, 2025Form 4/A	Paschke Brett LeeDirector	BuyCommon Stock	5.0K	$13.39	$67.0K	30.1K
May 7, 2025Form 4	Paschke Brett LeeDirector	BuyCommon Stock	5.0K	$13.39	$67.0K	30.1K
May 7, 2025Form 4/A	Olsen GeirDirector	BuyCommon Stock · indirect	18.2K	$13.59	$247.7K	43.9K
May 7, 2025Form 4	Olsen GeirDirector	BuyCommon Stock · indirect	18.2K	$13.59	$247.7K	43.9K

Review ownership filings at SEC.gov ↗

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