PRA Group Inc. Common Stock (PRAA)

FairStock Score: 73/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at PRA Group as a collection-and-portfolio-purchase business: it buys unpaid loans and tries to collect more than it paid. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $372.2M, net income $57.9M, and diluted EPS $1.51. That is a real rebound from fiscal Q2 2025, when revenue was $287.7M, net income $42.4M, and EPS $1.08. But it follows a brutal fiscal Q3 2025, when the company reported a net loss of $407.7M and EPS of -$10.43, and FY2025 ended 2025-12-31 with a net loss of $305.1M and EPS of -$7.79. The Lynch category given is TURNAROUND, and that fits: a loss year after earlier profits. At the 2026-10-13 close of $20.47, FairStock calculates P/B 0.74 and P/E -3.05; so the market prices it below book but not on trailing earnings. Balance-sheet quality is the rub: FairStock shows D/E 3.41, Altman Z 1.71, ROE -20.25%, ROCE 5.63%, and TTM FCF -$37.8M. Piotroski is 6/9 and FairStock Score 73/100, which suggests some stabilization, not safety. This is not a wide-moat franchise; portfolio buying is capital-intensive and depends on collection execution. The Q2 2026 profit is encouraging, but one quarter does not prove normalized earnings. I would want several quarters of positive cash flow and lower leverage before trusting book value.

In plain English: PRA Group buys unpaid loans and tries to collect more than it paid for them. The business looks shaky because the last full year showed a large loss and cash flow was negative, even though the most recent filed quarter was profitable. At $20.47, the price is below the value of its net assets on the books, so it looks cheap if the turnaround lasts and expensive if losses come back.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer