TSE:PRL
Propel Holdings (PRL.TO)
Financials 
Technical Analysis 
Jul 13, 2026, 12:00 amThis summary was created by AI, based on 35 opinions in the last 12 months.
Propel Holdings (PRL) is navigating a challenging environment due to rising credit loss provisions and market concerns surrounding sub-prime lending. While many experts recognize the company's strong management team and innovative AI-driven credit assessment system, there is a cautious sentiment related to the overall economic conditions impacting low- to mid-end consumers in Canada. The stock has experienced a notable decline, often being unjustly linked to other alternative lenders like GoEasy (GSY), yet it continues to attract attention due to its growth potential and significant market segment. Analysts point out the potential for a rebound, given the company's strong revenue growth and historically robust dividend increases. However, the overarching risk associated with sub-prime lending and uncertain economic conditions requires careful monitoring from investors.
It is 2 years old, doing many things right, has grown earnings at 40% and raised its dividend many times. Therefore it is both income and growth. Its valuation is higher now and is near 20X earnings while the sector trades at 11 or 12X. Has business in both the U.S. and Canada. He is a little concerned if Trump sets the maximum interest rate at 10% but does not necessarily think that will happen. It should consolidate so you could buy in the lower 30's.
Peter HodsonGreat business. Largest position in fund. One of the best financial stocks in Canada. Online lending business (small loans to consumers). Return on equity ~30%. Trading around 10x earnings. Expecting further growth in company. Reasonable valuation with good dividend and growth prospects. Would recommend buying and holding.
Jordan Zinberg;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium contentPremium contentOn the back of record earnings recently reported, we reiterate PRL as a TOP PICK. Demand from consumers for credit is soaring, leading to a 40% increase in originations. Management is operating prudently as cash reserves continue to grow, while debt is reduced. It trades at 20x earnings and supports a 36% ROE. The dividend was recently increased, but is still comfortably covered with cash flow. We recommend trailing up the stop (from $20) to $24, looking to achieve $33 -- upside potential of 20%. Yield 1.2%
(Analysts’ price target is $32.95)Premium contentWe again reiterate this direct lender to individuals, as a TOP PICK. It trades at 20x earnings and supports a 33% ROE. The company is prudently using some cash reserves to retire debt. Recently reported earnings showed a 77% increase in net income and a record level loans that had grown by 39%. We continue to recommend a tight stop at $20, looking to achieve $32 -- upside potential over 26%. Yield 2.2%
(Analysts’ price target is $31.88)One of the largest holdings in the fund. One of the best small cap growth stocks in Canada. Doubling of profits every single year. Expecting ~20% growth going forward. ~30% ROE, with minimum leverage. Lending in the US market with small base (able to grow). Highly aligned management that is top notch. Non-prime lender - but accounting for this with higher rates. Ability to underwrite without a human - tech very strong. 2% dividend yield is safe.
Jordan ZinbergPremium contentWe reiterate PRL, a direct lender to individuals, as a TOP PICK. It trades at 19x earnings and under 2x book, while supporting a 33% ROE. Recently reported earnings showed a 77% increase in net income and a record level loans that had grown by 39%. We continue to recommend a tight stop at $20, looking to achieve $31 -- upside potential over 30%. Yield 2.2%
(Analysts’ price target is $31.08)PRL's dividend has increased by 30% compared to the same quarter for the previous year, and much of this increase is in relation to its rising stock price. From 2021 to the end of 2023, its quarterly dividend payment was between $0.095 and $0.105, and its yield was between 5% and 6%. In late 2023 when its share price began to appreciate rapidly, its dividend yield dropped as a result, and to maintain an attractive yield PRL has been raising its dividend payment. Its yield now stands at 2.3% and has been fairly stable since early this year.
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Premium contentWe reiterate this lender to consumers as a TOP PICK. Recently reported earnings showed a 47% increase in revenues and 77% increase in net income. Management reported a record quarter for new loan originations. The company is prudently using some cash reserves to aggressively retire debt. It trades at 19x earnings and supports a 33% ROE. We recommend trailing up the stop (from $16) to $20, looking to achieve $31 -- upside potential of 30%. Yield 1.3%
(Analysts’ price target is $31.25)Consistently profitable, raising dividend. No bricks and mortar, works with credit unions. Uses AI to follow your tracks to get a more enhanced credit score, so it's a better predictor of a borrower's credit worthiness. We'll need to get data from a credit cycle, but so far credit quality seems to be really strong. Yield is 2.3%.
(Analysts’ price target is $31.10)
Jason DonvillePremium content
Premium contentHe likes and knows it really well. Management is doing an excellent job. It has doubled its profits every year for the last 3 years. It is hard to keep up this pace but it should be able to continue to have healthy growth and profits. Has a high ROC, good dividend, single digit multiples. Management and insiders own lots.
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Our PAST TOP PICK with PRL is progressing well. To remain disciplined, we recommend trailing up the stop (from $27) to $30 at this time.