PRA Group Inc. Common Stock (PRAA)

FairStock Score: 73/100 — STEADY

Key Financials

Strengths

• FairStock composite score of 73/100 places it in the top tier across value, quality, and momentum factors

Concerns

• High leverage at 3.57x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 1.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

PRA Group Inc. Common Stock is a micro-cap financial services company valued at $803 million. The business generates $1.2 billion in annual revenue with a 4.5% net margin. From a quality standpoint, PRA shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.7 warrants caution. Growth dynamics show revenue growing at 13.7% and profit growth of 206.3%. Our composite FairStock Score of 73/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 3.6x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer