PROG Holdings Inc. Common Stock (PRG)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

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

I look for businesses that earn good returns on capital and sell for less than they are worth. PROG provides lease-to-own and buy-now-pay-later payment options through Progressive Leasing and Four. The returns are respectable: ROE 17.07%, ROCE 15.04%, and trailing free cash flow of $318.7M against a $1.2B market cap, a 26.2% FCF yield. The balance sheet is not fortress-like, with debt-to-equity of 1.10 and an Altman Z-score of 2.87, but a Piotroski score of 7/9 suggests reasonable financial momentum. Valuation is undemanding. At the 2026-10-13 close of $30.58, the P/E is 9.86 and P/B 1.51. The Graham Number is $37.55, offering an 18.56% margin of safety. EV/EBITDA of 1.14 looks remarkably low, though such a figure can reflect debt or accounting quirks. Growth is the weak spot. FairStock classifies it as a SLOW GROWER — Shrinking, with profit down 11.9% a year over four years and revenue down 2.6%. Filed results show FY2025 net income of $146.8M and diluted EPS of $3.59, down from FY2024's $197.2M and $4.53, though FY2023 was lower at $138.8M and $2.98. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $37.0M, or $0.91 per diluted share. So I see a cash-rich, cheap-looking lender/lessor with a mixed record. The margin of safety is real, but I would want evidence that earnings and revenue are not just cyclical or deteriorating.

In plain English: PROG Holdings offers lease-to-own and buy-now-pay-later payment plans through Progressive Leasing and Four. It is profitable and produces a lot of cash, but recent profits have slipped and it carries meaningful debt. At $30.58, the shares look inexpensive compared with earnings, cash flow, and accounting value, though weak growth makes the low price riskier than it first appears.

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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