Propel Holdings Inc (PRL) AI Stock Analysis

• Market Cap: C$1.37B
• Dividend Yield: 2.06%
• Average Volume (3M): 121.87K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.33
• Revenue Growth: 42.29%
• EPS Growth: 46.85%
• Country: CA
• Employees: 620
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.62
• Shares Outstanding: 39,335,520
• 10 Day Avg. Volume: 128,307
• 30 Day Avg. Volume: 121,869
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$43.00
• Price Target Upside: 28.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: C$37.00 ▲(10.61% Upside)

Propel Holdings Inc's strong financial performance, characterized by robust revenue growth and profitability improvements, is the most significant factor contributing to its stock score. The valuation is reasonable, with a moderate P/E ratio and a decent dividend yield. However, technical indicators suggest a neutral to slightly bearish trend, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, providing a solid foundation for future expansion and financial stability.

Profitability Improvements

Improved profitability margins demonstrate effective cost management and operational efficiency, enhancing the company's ability to reinvest in growth opportunities.

Financial Stability

An improved equity ratio suggests better financial health and reduced risk, providing a more stable platform for future growth and investment.

Negative Factors

High Debt Levels

High debt levels can strain financial resources and limit flexibility, potentially impacting the company's ability to invest in growth or weather economic downturns.

Negative Cash Flow

Consistently negative cash flow indicates reliance on external financing, which can be unsustainable and risky if market conditions change or financing becomes costly.

Operational Costs

Lack of EBIT or EBITDA suggests rising operational costs or reinvestments, which may pressure profitability if not managed properly, affecting long-term financial health.

Propel Holdings Inc Business Overview & Revenue Model

Company Description

Propel Holdings Inc. operates as an online financial technology company. The company's online lending platform facilitates access to credit products, such as installment loans and lines of credit under the MoneyKey and CreditFresh brands to American consumers. It also offers marketing, analytics, and loan servicing services. Propel Holdings Inc. was incorporated in 2011 and is headquartered in Toronto, Canada.

How the Company Makes Money

Propel Holdings Inc. generates revenue primarily through interest income and fees associated with its lending products. The company offers installment loans and lines of credit, targeting consumers who may have limited access to traditional banking services. Propel utilizes proprietary technology to assess creditworthiness and manage risk, enabling them to extend credit to a broader range of customers. Revenue is mainly derived from the interest charged on outstanding loan balances, as well as origination fees and other service charges related to the use of their financial products. Additionally, Propel may engage in strategic partnerships with other financial institutions to expand its market reach and enhance its product offerings.

Propel Holdings Inc Financial Statement Overview

Summary

Propel Holdings Inc shows robust revenue growth and profitability improvements over recent years, though it faces challenges with operational cash flow generation. The company's high debt levels need careful management to mitigate financial risks. Overall, Propel Holdings is on a positive trajectory with strong revenue and profit growth but must address cash flow weaknesses to ensure long-term financial health.

Income Statement

Propel Holdings Inc has shown impressive revenue growth over the years, with a significant increase from $64.58M in 2019 to $416.02M in 2024. The gross profit margin is consistently high at 100%, indicating strong pricing power and cost management. However, the company reported no EBIT or EBITDA for 2024, which could indicate increasing operational costs or strategic reinvestments impacting profits. The net profit margin improved to 11.14% in 2024 from 3.09% in 2019, reflecting enhanced efficiency in converting revenues into net income.

Balance Sheet

The debt-to-equity ratio has remained relatively stable, reflecting prudent financial management though it is on the higher side, posing potential risks if not managed carefully. The equity ratio improved to 38.13% in 2024 from a low of 4.46% in 2019, indicating stronger financial stability. Return on equity (ROE) stands at 22.07% in 2024, showcasing effective use of equity to generate profits. However, the high level of debt suggests risk if earnings do not sustain growth.

Cash Flow

The company's free cash flow has been consistently negative, raising concerns about its ability to generate cash independently from operations. The operating cash flow to net income ratio is negative, indicating that net income does not translate effectively into cash flow. Despite this, Propel Holdings has managed to secure financing to support its cash needs, evidenced by strong financing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	529.31M	447.87M	316.70M	226.73M	123.13M	69.07M
Gross Profit	312.65M	193.52M	131.99M	216.57M	123.13M	69.07M
EBITDA	87.14M	68.09M	42.21M	30.66M	0.00	11.07M
Net Income	60.71M	46.38M	27.78M	15.13M	6.56M	7.33M
Balance Sheet
Total Assets	604.59M	551.01M	344.26M	256.68M	149.50M	79.05M
Cash, Cash Equivalents and Short-Term Investments	25.42M	20.50M	13.75M	7.66M	7.24M	5.25M
Total Debt	290.17M	274.29M	201.52M	151.57M	50.05M	52.83M
Total Liabilities	354.44M	340.89M	242.74M	175.04M	74.17M	70.64M
Stockholders Equity	250.16M	210.11M	101.52M	81.64M	75.33M	8.42M
Cash Flow
Free Cash Flow	-22.87M	-61.13M	-32.39M	-90.59M	-54.60M	-17.55M
Operating Cash Flow	-14.99M	-54.84M	-26.95M	-85.32M	-51.83M	-15.42M
Investing Cash Flow	-73.49M	-71.90M	-5.43M	-5.27M	-2.76M	-2.13M
Financing Cash Flow	102.08M	134.83M	38.48M	91.01M	56.59M	16.59M

Propel Holdings Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PRL, the sentiment is Positive. The current price of 33.45 is above the 20-day moving average (MA) of 32.78, below the 50-day MA of 34.04, and above the 200-day MA of 32.36, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 79.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PRL.

Propel Holdings Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLY	75 Outperform	313.76M	13.33	52.43%	6.72%	-0.31%	-5.26%
GSY	74 Outperform	2.97B	12.04	23.48%	2.85%	14.61%	8.17%
LB	74 Outperform	1.46B	10.75	0.00%	5.72%	-9.93%	0.00%
PRL	72 Outperform	C$1.37B	15.47	33.66%	2.06%	42.29%	46.85%
DLCG	52 Neutral	729.48M	-3.97	-86.11%	1.50%	35.22%	-1246.65%
ACD	46 Neutral	29.61M	-6.12	-3.88%	―	-11.69%	71.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%