Why Propel Stock Keeps Going Up

Propel stock has seen a fivefold increase in its market cap in the last year! But even more is set to come.

| More on:
stocks climbing green bull market

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Propel Holdings (TSX:PRL) has been steadily climbing on the TSX, and there’s a good reason for it. This fintech company, focused on providing credit access to underserved consumers, has shown impressive growth. Boosted by strategic moves, robust earnings, and strong market confidence. Let’s dive into why Propel Holdings keeps going up.

Into earnings

Propel’s recent earnings reveal the story of a company hitting high notes on revenue growth and profitability. The company’s quarterly revenue growth of 48.9% year over year and quarterly earnings growth of 95% signal a sharp uptick in its performance. Propel’s profit margins are also noteworthy, with a 10.17% profit margin and a strong operating margin of 21.73%, thereby showing that the company is managing its costs effectively while expanding its customer base.

One key metric that has been catching investors’ eyes is Propel’s return on equity (ROE) of 36.84%. This high ROE indicates that the company is making efficient use of its capital to generate profits. A crucial factor for investors seeking growth potential. Propel’s total assets may not be sky-high, but they are well-leveraged. Showcasing the company’s ability to grow without significant debt burden.

In fact, Propel’s impressive valuation measures speak volumes. As of June 2024, Propel’s market cap jumped to $1.26 billion from just $254 million a year ago! This nearly fivefold increase in valuation reflects investor confidence and Propel’s track record of capitalizing on growth opportunities. Propel’s forward price-to-earnings (P/E) ratio of 7.43 suggests it is priced attractively for the future, thus indicating potential for continued appreciation.

More to come

Propel’s recent inclusion in Deloitte’s Technology Fast 50 list also shines a light on its innovation and growth. Recognized as one of Canada’s fastest-growing companies, Propel stock has set itself apart by focusing on artificial intelligence (AI)-driven financial solutions that broaden credit access. This industry recognition validates its business model and sets the stage for even broader acceptance among institutional investors.

One of the most exciting developments for Propel has been its strategic acquisition of QuidMarket, a United Kingdom-based fintech lender catering to underserved consumers. Propel’s chief executive officer, Clive Kinross, sees this acquisition as a pivotal step toward global expansion. By entering the U.K. market, Propel gains access to a new customer base where demand for credit is high, thus amplifying its growth potential. Kinross describes this acquisition as a “critical step” in Propel’s mission to become a global leader.

The acquisition is also likely to be financially accretive for Propel, meaning it should enhance Propel’s earnings per share (EPS) in both 2024 and 2025. Investors typically favour accretive acquisitions, as they boost shareholder value without diluting equity. Propel’s disciplined approach to acquisitions, focusing on cultural fit and financial benefits, suggests that the company is poised for sustainable long-term growth.

Bottom line

Propel stock’s share price also reflects strong trading activity, with an average daily trading volume that has been climbing, signalling investor interest. Institutional ownership in Propel stock is still relatively low, meaning there’s room for more large-scale investors to jump in. This could further boost its stock price.

Lastly, Propel’s dividend is another enticing factor for investors. With a forward annual dividend yield of 1.52%, Propel stock offers a solid income stream for dividend-seeking investors. The recent uptick in Propel’s stock price and dividend payout could attract more long-term, income-focused investors, adding stability to its investor base.

All together, Propel stock’s steady rise can be attributed to a combination of strong earnings, strategic acquisitions, industry recognition, and a well-structured growth plan. With continued expansion into new markets and a focus on technology-driven credit solutions, Propel stock looks set to keep climbing, thereby making it an exciting stock to watch for both growth and income investors alike.

Should you invest $1,000 in Canadian Apartment Properties right now?

Before you buy stock in Canadian Apartment Properties, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canadian Apartment Properties wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Propel. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Tech Stocks

sale discount best price
Dividend Stocks

Is This Correction Your Chance? Top 5 Canadian Dividend Stocks on Sale

For value, income, and long-term growth, check out these top five dividend stocks.

Read more »

chart reflected in eyeglass lenses
Tech Stocks

3 Stocks I Think Everyone Should Buy – Every Time They Dip 

Buying the dip in the right stocks can accelerate your returns. Here’s a way to choose the right stock to…

Read more »

stocks climbing green bull market
Tech Stocks

Market Volatility? A Canadian Investor’s Guide to Turning Uncertainty Into Profit

Volatile stock markets are a long-term wealth-building opportunity. Here's how you can profit from uncertainty.

Read more »

Medicinal research is conducted on cannabis.
Tech Stocks

Buy the Dip, Eh? 3 Canadian Stocks to Scoop Up During This Correction

Looking for value in a correction? Now could be the time to pick up these three Canadian stocks.

Read more »

Income and growth financial chart
Tech Stocks

Buy the Dip: These Canadian Tech Stocks Are Primed for a Rebound

Not all tech stocks are created equal, nor are they all volatile. The proof? These two tech stocks.

Read more »

exchange traded funds
Tech Stocks

ETF Alert: $10,000 Invested in XIT 10 Years Ago Is Worth This Much Today 

The ETF gives you the benefit of a rally and also mitigates the downside risk.

Read more »

Man looks stunned about something
Tech Stocks

Tariff Worries: How Canadian Investors Can Hedge Their Portfolios Now

Worried about tariffs? Welcome to the club. So here are two Canadian stocks to help ease your anxieties.

Read more »

a-developer-typing-lines-of-ai-code-while-viewing-multiple-computer-monitors
Tech Stocks

Want to Buy Palantir? This Canadian Tech Stock Is a Better Buy in the Stock Market Sell-Off

Down over 30% from all-time highs, Palantir is a tech stock that trades at a lofty multiple. Here's another TSX…

Read more »