PROG Holdings Price To Book vs. Return On Equity

PRG Stock  USD 47.87  0.24  0.50%   
Based on PROG Holdings' profitability indicators, PROG Holdings may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess PROG Holdings' ability to earn profits and add value for shareholders. At this time, PROG Holdings' Days Of Sales Outstanding is most likely to increase significantly in the upcoming years. At this time, PROG Holdings' Net Income Applicable To Common Shares is most likely to decrease significantly in the upcoming years. The PROG Holdings' current Net Income Per Share is estimated to increase to 3.17, while Total Other Income Expense Net is projected to decrease to (30.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.330.3455
Sufficiently Down
Slightly volatile
Net Profit Margin0.03980.0577
Way Down
Very volatile
Operating Profit Margin0.0880.0937
Notably Down
Slightly volatile
Pretax Profit Margin0.06110.0815
Way Down
Pretty Stable
Return On Assets0.05450.0931
Way Down
Pretty Stable
Return On Equity0.250.2348
Notably Up
Slightly volatile
For PROG Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PROG Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PROG Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PROG Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PROG Holdings over time as well as its relative position and ranking within its peers.
  

PROG Holdings' Revenue Breakdown by Earning Segment

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For more detail on how to invest in PROG Stock please use our How to Invest in PROG Holdings guide.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PROG Holdings. If investors know PROG will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PROG Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.553
Dividend Share
0.36
Earnings Share
3.61
Revenue Per Share
55.825
Quarterly Revenue Growth
0.04
The market value of PROG Holdings is measured differently than its book value, which is the value of PROG that is recorded on the company's balance sheet. Investors also form their own opinion of PROG Holdings' value that differs from its market value or its book value, called intrinsic value, which is PROG Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PROG Holdings' market value can be influenced by many factors that don't directly affect PROG Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PROG Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if PROG Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PROG Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

PROG Holdings Return On Equity vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining PROG Holdings's current stock value. Our valuation model uses many indicators to compare PROG Holdings value to that of its competitors to determine the firm's financial worth.
PROG Holdings is regarded fourth in price to book category among its peers. It is considered to be number one stock in return on equity category among its peers reporting about  0.08  of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for PROG Holdings is roughly  12.38 . At this time, PROG Holdings' Return On Equity is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value PROG Holdings by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

PROG Return On Equity vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

PROG Holdings

P/B

 = 

MV Per Share

BV Per Share

 = 
3.19 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

PROG Holdings

Return On Equity

 = 

Net Income

Total Equity

 = 
0.26
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

PROG Return On Equity Comparison

PROG Holdings is currently under evaluation in return on equity category among its peers.

PROG Holdings Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in PROG Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PROG Holdings will eventually generate negative long term returns. The profitability progress is the general direction of PROG Holdings' change in net profit over the period of time. It can combine multiple indicators of PROG Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income225.6 M231.3 M
Income Before Tax196.2 M117.4 M
Total Other Income Expense Net-29.4 M-30.9 M
Net Income138.8 M81 M
Income Tax Expense57.4 M35.7 M
Interest Income33.7 M35.3 M
Net Income Applicable To Common Shares88.8 M107.6 M
Net Interest Income-40.7 M-38.6 M
Net Income From Continuing Ops138.8 M137.4 M
Change To Netincome16.6 M15.8 M
Net Income Per Share 3.02  3.17 
Income Quality 1.47  1.40 
Net Income Per E B T 0.71  0.51 

PROG Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on PROG Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PROG Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PROG Holdings' important profitability drivers and their relationship over time.

Use PROG Holdings in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PROG Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PROG Holdings will appreciate offsetting losses from the drop in the long position's value.

PROG Holdings Pair Trading

PROG Holdings Pair Trading Analysis

The ability to find closely correlated positions to PROG Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PROG Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PROG Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PROG Holdings to buy it.
The correlation of PROG Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PROG Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PROG Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PROG Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your PROG Holdings position

In addition to having PROG Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Robots And Drones
Robots And Drones Theme
Large technology companies that are involved in development and manufacturing of drones, robots, or robotic equipment across mechanical engineering, electrical engineering, mathematics and computer science fields. Drones and robotics are projected to significantly grow in demand in the next 5 years. The Robots And Drones theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Robots And Drones Theme or any other thematic opportunities.
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When determining whether PROG Holdings is a strong investment it is important to analyze PROG Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PROG Holdings' future performance. For an informed investment choice regarding PROG Stock, refer to the following important reports:
Check out Your Equity Center.
For more detail on how to invest in PROG Stock please use our How to Invest in PROG Holdings guide.
You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
To fully project PROG Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PROG Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PROG Holdings' income statement, its balance sheet, and the statement of cash flows.
Potential PROG Holdings investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although PROG Holdings investors may work on each financial statement separately, they are all related. The changes in PROG Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on PROG Holdings's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.