PRA GroupPRAA +2.21%59 Operating Margin % is 22.73% as of Mar. 2026, which is 15% above its 10-year median of 19.80. 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 412 Credit Services companies, PRA Group ranks better than 54.85% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. PRA Group's Operating Income for the
three
months ended in Mar. 2026 was $72 Mil. PRA Group's Revenue for the
three
months ended in Mar. 2026 was $317 Mil. Therefore, PRA Group's Operating Margin % for the quarter that ended in Mar. 2026 was 22.73%.
The historical rank and industry rank for PRA Group's Operating Margin % or its related term are showing as below:
PRAA'
s Operating Margin % Range Over the Past 10 Years
Min: -10.12 Med: 19.8 Max: 26.41
Current: 21.88
PRAA's Operating Margin % is ranked better than 54.85% of 412
companies
in the Credit Services industry
Industry Median: 17.325
vs PRAA: 21.88
PRA Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
PRA Group's Operating Income for the
three
months ended in Mar. 2026 was $72 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $275 Mil.
Warning Sign:
PRA Group Inc has recorded a loss in operating income at least once over the past 3 years.
PRA Group (NAS:PRAA) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
PRA Group Operating Margin % Related Terms
PRA Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for PRA Group's Operating 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: Operating Margin % Comparison
For the Credit Services subindustry, PRA Group's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PRA Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PRA Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
PRA Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
PRA Group (PRAA) has a Operating Margin % of 22.73% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PRA Group and its competitors. This is 15% above median its historical median of 19.80. According to the industry distribution chart, PRA Group ranks #186 out of 412 companies in the Credit Services industry, placing it in the top 45.1%.
Is PRA Group's Operating Margin % too high?
PRA Group's current Operating Margin % of 22.73% is 15% above median its 10-year median of 19.80. The Credit Services industry median Operating Margin % is 17.33. PRA Group's value of 22.73% is 31.2% above this industry median. Based on the distribution chart, PRA Group ranks #186 out of 412 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 Operating Margin % compare to TROO and HTT?
According to the Credit Services industry distribution chart, PRA Group ranks #186 out of 412 companies for Operating Margin %. This puts PRA Group in the upper half of its industry. The industry median Operating Margin % is 17.33. PRA Group's value of 22.73% is 31.2% above this benchmark. While the company's 10-year median is 19.80 vs. the industry median of 17.33, 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 Operating Margin % for a Credit Services company?
The median Operating Margin % among Credit Services companies is 17.33, based on 412 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PRA Group's current Operating Margin % of 22.73% is 31.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on PRA Group and its competitors. For the Credit Services industry, the median Operating Margin % is 17.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PRA Group's current Operating Margin % is 22.73%, which is 15% above median its own 10-year median of 19.80. 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 Operating Margin % is 22.73%, which is 15% above median its 10-year median of 19.80 and 31.2% above the Credit Services industry median of 17.33. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For PRA Group (PRAA), the current Operating Margin % is 22.73% 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:
Operating Margin %: 22.73% (15% above median its 10-year median of 19.80)
GF Value™: $26.20 vs. price of $18.03 (31.2% below fair value)
Industry Position: 31.2% above the Credit Services median (#186 of 412)
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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