PROG Holdings, Inc. Fundamental Analysis (NYSE: PRG)
PROG Holdings, Inc. Fundamental Analysis (NYSE: PRG)
PROG Holdings, Inc. (NYSE: PRG) shows moderate financial fundamentals with a PE ratio of 11.33, profit margin of 5.81%, and ROE of 19.36%. The company generates $2.5B in annual revenue with weak year-over-year growth of -2.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
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
WeakPRG faces weak or negative growth trends.
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 11.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PRG's PEG of -0.39 indicates potential undervaluation.
Price to Book
The market values PROG Holdings, Inc. at 2.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.86 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 $5.81 as profit after all expenses.
Operating Margin
Core operations generate 9.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.36 in profit for every $100 of shareholder equity.
ROA
PROG Holdings, Inc. generates $7.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PROG Holdings, Inc. generates limited operating cash flow of $185.80M, signaling weaker underlying cash strength.
Free Cash Flow
PROG Holdings, Inc. produces free cash flow of $171.53M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.31 in free cash annually.
FCF Yield
PRG converts 10.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How PRG Stacks Against Its Sector Peers
| Metric | PRG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.33 | 21.17 | Better (Cheaper) |
| ROE | 19.36% | 668.00% | Weak |
| Net Margin | 5.81% | 876.00% | Weak |
| Debt/Equity | 1.10 | 0.79 | Weak (High Leverage) |
| Current Ratio | 3.30 | 905.28 | Strong Liquidity |
| ROA | 7.16% | 4787782.00% | 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
62.68%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
500.66%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
23.25%
Industry Style: Value, Dividend, Cyclical
High Growth