$PROG Holdings (PRG.US)$It's a consumer loan, and it's not v...
$PROG Holdings (PRG.US)$It's a consumer loan, and it's not very appropriate to put it into the leasing sector. The risk of this business model lies in the rate of bad debts. Listed in 2020, revenue increased by 7.8% in 2021, shrank by 3% in 2022, operating profit increased by 26.8% in 2021, contracted by 33% in 2022, net profit increased to 244 million in 2021, and contracted by 59.5% in 2022.
In the first half of 2023, revenue shrank by 8.2%, operating profit increased by 46.8%, and net profit increased by 83%.
The balance ratio has risen from 25.2% in 2020 to 61.8%, and should increase in the future. The model is to borrow money to help customers pay, then the customer returns the money in installments. What is earned is interest spreads. The loans are all long-term loans, which are relatively safe. There was a loss of 100 million dollars in capital assets in 2022. I don't know if it's a bad debt.
Currently, the price-earnings ratio is 18.2, and the price-earnings ratio TTM has dropped to 12.2. It is not underestimated when assessed by financial institutions. From a financial technology perspective, growth is also too unstable, so it will be observed for the time being.
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