skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. PRL: what's your take on this company? [Propel Holdings Inc.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: what's your take on this company?
thanks
Asked by steve on November 29, 2023
5i Research Answer:

PRL operates as a consumer lending platform and is now trading at 5.9x times' Forward P/E. In the last few years, revenue growth has been solid. The balance sheet is quite leveraged with long-term debt of $172M, and long-term debt/equity is around 1.82x. PRL’s business model involves borrowing long-term debt and lending it within a short period of time to consumers. Shares are up 48% YTD yet PRL is trading quite cheaply given its growth prospects. Business may improve as well with lower rates. Insiders are committed with 24% ownership and the last quarter was nicely ahead of estimates. It went public in 2021 and only received went over its IPO price. But it is starting to put things together and we consider it interesting. We still prefer much larger peer GSY overall.