PRA GroupPRAA +2.21%59 Gross Margin % is 67.01% as of Mar. 2026, which is 10% above its 10-year median of 61.06. GuruFocus rates PRAA with a GF Score™ of 59/100 and a GF Value™ of $26.20 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 388 Credit Services companies, PRA Group ranks better than 65.21% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. PRA Group's Gross Profit for the
three
months ended in Mar. 2026 was $213 Mil. PRA Group's Revenue for the
three
months ended in Mar. 2026 was $317 Mil. Therefore, PRA Group's Gross Margin % for the quarter that ended in Mar. 2026 was 67.01%.
The historical rank and industry rank for PRA Group's Gross Margin % or its related term are showing as below:
PRAA'
s Gross Margin % Range Over the Past 10 Years
Min: 41.37 Med: 61.06 Max: 68.89
Current: 64.91
During the past 13 years, the highestGross Margin % of PRA Group was 68.89%. The lowest was 41.37%. And the median was 61.06%.
PRAA's Gross Margin % is ranked better than 65.21% of 388
companies
in the Credit Services industry
Industry Median: 51.845
vs PRAA: 64.91
PRA Group had a gross margin of 67.01% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PRA Group was 0.10% per year.
PRA Group (NAS:PRAA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
PRA Group had a gross margin of 67.01% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
PRA Group Gross Margin % Related Terms
PRA Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for PRA Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PRAA vs TROO, HTT, OPFI: Gross Margin % Comparison
For the Credit Services subindustry, PRA Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PRA Group Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PRA Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PRA Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
PRA Group (PRAA) has a Gross Margin % of 67.01% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PRA Group and its competitors. This is 10% above median its historical median of 61.06. Over the past decade, PRA Group's Gross Margin % has ranged from 41.37 to 68.89. According to the industry distribution chart, PRA Group ranks #135 out of 388 companies in the Credit Services industry, placing it in the top 34.8%.
Is PRA Group's Gross Margin % too high?
PRA Group's current Gross Margin % of 67.01% is 10% above median its 10-year median of 61.06. Over the past 10 years, this metric has ranged from a low of 41.37 to a high of 68.89. The Credit Services industry median Gross Margin % is 51.85. PRA Group's value of 67.01% is 29.3% above this industry median. Based on the distribution chart, PRA Group ranks #135 out of 388 companies in the Credit Services industry, which is above the industry midpoint. Overall, PRA Group has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PRA Group's Gross Margin % compare to TROO and HTT?
According to the Credit Services industry distribution chart, PRA Group ranks #135 out of 388 companies for Gross Margin %. This puts PRA Group in the upper half of its industry. The industry median Gross Margin % is 51.85. PRA Group's value of 67.01% is 29.3% above this benchmark. Historically, PRA Group's own Gross Margin % has ranged from 41.37 to 68.89 over the past decade. While the company's 10-year median is 61.06 vs. the industry median of 51.85, PRA Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Credit Services company?
The median Gross Margin % among Credit Services companies is 51.85, based on 388 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PRA Group's current Gross Margin % of 67.01% is 29.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on PRA Group and its competitors. For the Credit Services industry, the median Gross Margin % is 51.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PRA Group's current Gross Margin % is 67.01%, which is 10% above median its own 10-year median of 61.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PRA Group stock overvalued right now?
Based on GuruFocus' analysis, PRA Group (PRAA) is currently considered Possible Value Trap. The stock's GF Value™ is $26.20, compared to a current price of $18.03 — trading 31.2% below its estimated fair value. The current Gross Margin % is 67.01%, which is 10% above median its 10-year median of 61.06 and 29.3% above the Credit Services industry median of 51.85. PRA Group's overall GF Score™ is 59/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For PRA Group (PRAA), the current Gross Margin % is 67.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PRA Group (PRAA) Overvalued in 2026?
Based on GuruFocus' analysis, PRA Group stock appears to be undervalued.
The current stock price of $18.03 is trading 31.2% below its estimated GF Value™ of $26.20.
GuruFocus considers PRA Group to be Possible Value Trap.
Key valuation signals for PRAA:
Gross Margin %: 67.01% (10% above median its 10-year median of 61.06)
GF Value™: $26.20 vs. price of $18.03 (31.2% below fair value)
Industry Position: 29.3% above the Credit Services median (#135 of 388)
No single metric tells the full story. See the PRAA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PRA Group Inc is a specialty finance company engaged in the purchase, collection, and management of nonperforming loan portfolios. The majority of the loans it purchases are from credit originators who have chosen not to pursue, or have been unsuccessful in collecting, the full balance owed to them (Core accounts). To a lesser extent, the company also purchases loans in situations where the customer is involved in a bankruptcy or similar proceeding (Insolvency accounts). As part of an ancillary business, it also purchases and provides fee-based services for class action claims recoveries in the U.S. The company has two operating and reportable segments, comprised of its U.S. and European businesses. The majority of its revenue is generated from the United States.
59GF Score
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