PRA GroupPRAA -0.87%63 Return-on-Tangible-Equity is 11.70% as of Mar. 2026, which is 16% below its 10-year median of 13.89. GuruFocus rates PRAA with a GF Score™ of 63/100 and a GF Value™ of $26.20 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 525 Credit Services companies, PRA Group ranks worse than 94.29% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. PRA Group's annualized net income for the quarter that ended in Mar. 2026 was $113 Mil. PRA Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $964 Mil. Therefore, PRA Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.70%.
The historical rank and industry rank for PRA Group's Return-on-Tangible-Equity or its related term are showing as below:
PRAA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -36.08 Med: 13.89 Max: 37.48
Current: -31
During the past 13 years, PRA Group's highest Return-on-Tangible-Equity was 37.48%. The lowest was -36.08%. And the median was 13.89%.
PRAA's Return-on-Tangible-Equity is ranked worse than 94.29% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs PRAA: -31.00
PRA Group (NAS:PRAA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
PRA Group Return-on-Tangible-Equity Related Terms
PRA Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for PRA Group's Return-on-Tangible-Equity 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 GDOT, OPFI, NAVI: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, PRA Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PRA Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where PRA Group's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 11.70% mean?
PRA Group (PRAA) has a Return-on-Tangible-Equity of 11.70% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on PRA Group and its competitors. This is 16% below median its historical median of 13.89. According to the industry distribution chart, PRA Group ranks #495 out of 525 companies in the Credit Services industry, placing it in the top 94.3%.
Is PRA Group's Return-on-Tangible-Equity too high?
PRA Group's current Return-on-Tangible-Equity of 11.70% is 16% below median its 10-year median of 13.89. The Credit Services industry median Return-on-Tangible-Equity is 7.01. PRA Group's value of 11.70% is 66.9% above this industry median. Based on the distribution chart, PRA Group ranks #495 out of 525 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, PRA Group has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PRA Group's Return-on-Tangible-Equity compare to GDOT and OPFI?
According to the Credit Services industry distribution chart, PRA Group ranks #495 out of 525 companies for Return-on-Tangible-Equity. This places PRA Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.01. PRA Group's value of 11.70% is 66.9% above this benchmark. While the company's 10-year median is 13.89 vs. the industry median of 7.01, 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 Return-on-Tangible-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PRA Group's current Return-on-Tangible-Equity of 11.70% is 66.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on PRA Group and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PRA Group's current Return-on-Tangible-Equity is 11.70%, which is 16% below median its own 10-year median of 13.89. 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 Modestly Undervalued. The stock's GF Value™ is $26.20, compared to a current price of $18.75 — trading 28.4% below its estimated fair value. The current Return-on-Tangible-Equity is 11.70%, which is 16% below median its 10-year median of 13.89 and 66.9% above the Credit Services industry median of 7.01. PRA Group's overall GF Score™ is 63/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For PRA Group (PRAA), the current Return-on-Tangible-Equity is 11.70% 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 $18.75 is trading 28.4% below its estimated GF Value™ of $26.20.
GuruFocus considers PRA Group to be Modestly Undervalued.
Key valuation signals for PRAA:
Return-on-Tangible-Equity: 11.70% (16% below median its 10-year median of 13.89)
GF Value™: $26.20 vs. price of $18.75 (28.4% below fair value)
Industry Position: 66.9% above the Credit Services median (#495 of 525)
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.
63GF Score
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