Propel Holdings Inc T.PRL

Alternate Symbol(s): PRLPF | T.PRL.R

Propel Holdings Inc. is a Canada-based financial technology (fintech) company. The Company’s operating brands include Fora Credit, CreditFresh and MoneyKey, and its lending-as-a-service product line facilitates access to credit for consumers underserved by traditional financial institutions. Through its innovative artificial intelligence (AI)-driven platform, the Company evaluates customers in a more comprehensive way than traditional credit scores can. The Company enables access to credit through two types of credit products on its platform, such as Installment Loans and Lines of Credit. It is engaged in providing lending related services to borrowers, banks, and other institutions in the United States (US) and Canada. The Company, through its MoneyKey brand, offers either installment loans or lines of credit to customers in several US states. The Company, through its CreditFresh brand, operates as a bank servicer which provides marketing, technology, and loan services.

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Propel Holdings Inc

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Post by Possibleidiot01on Jun 29, 2023 6:44am

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Post# 35519929

Trevor Rose's insights

BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

PRL offers credit products and services to the underserved population and its products include: moneykey (loans and lines of credit for US customers), creditfresh (open-ended lines of credit for US customers), fora (lines of credit for Canadian customers), and pathward (lending as a service partner for the US). It has shown high growth rates over the past several years (58% and 75% most recently) and with a small revenue base of $242M it can see good growth into the future. Analyst estimates call for 33% and 36% growth over the next tow years. It's profitable and trades at a cheap valuation of 5.5X forward P/E, and has a growing balance sheet. We think it looks decent here, although it does have small-cap size risks. It does not yet generate positive free cash flow, and it is mostly funded through debt, but it is moving in the right direction. We would consider it buyable today, while being mindful of position sizing and the company's risks.
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