PROG Holdings, Inc.
PROG Holdings, Inc. Fundamental Analysis
PROG Holdings, Inc. (PRG) shows moderate financial fundamentals with a PE ratio of 10.90, profit margin of 5.97%, and ROE of 21.17%. The company generates $2.4B in annual revenue with weak year-over-year growth of 2.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PRG's fundamental strength across five key dimensions:
Efficiency Score
WeakPRG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPRG trades at attractive valuation levels.
Growth Score
ModeratePRG shows steady but slowing expansion.
Financial Health Score
ModeratePRG shows balanced financial health with some risks.
Profitability Score
ModeratePRG maintains healthy but balanced margins.
Key Financial Metrics
Is PRG Expensive or Cheap?
P/E Ratio
PRG trades at 10.90 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PRG's PEG of -1.19 indicates potential undervaluation.
Price to Book
The market values PROG Holdings, Inc. at 2.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.03 times EBITDA. This is generally considered low.
How Well Does PRG Make Money?
Net Profit Margin
For every $100 in sales, PROG Holdings, Inc. keeps $5.97 as profit after all expenses.
Operating Margin
Core operations generate 8.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.17 in profit for every $100 of shareholder equity.
ROA
PROG Holdings, Inc. generates $9.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PROG Holdings, Inc. produces operating cash flow of $333.59M, showing steady but balanced cash generation.
Free Cash Flow
PROG Holdings, Inc. generates strong free cash flow of $323.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.18 in free cash annually.
FCF Yield
PRG converts 20.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How PRG Stacks Against Its Sector Peers
| Metric | PRG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.90 | 26.76 | Better (Cheaper) |
| ROE | 21.17% | 1300.00% | Weak |
| Net Margin | 5.97% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 10.68 | Weak Liquidity |
| ROA | 9.11% | -1545134.00% (disorted) | Weak |
PRG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PROG Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.34%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
890.83%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-30.96%
Industry Style: Cyclical, Value, Infrastructure
Declining