# Paragon Banking Group PLC (PAG.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services / Thrifts & Mortgage Finance. Price 806p, market value 1.4 billionp.

## Valuation
- **P/E (trailing): 9.0×** (5-yr avg 763.9×, 3-yr avg 881.1×). Paragon Banking Group PLC trades at 9.0× trailing earnings, well below its own five-year average of 763.9×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 6.7×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.90**. A PEG of 1.90 is in the range usually read as fairly priced for its growth.
- **Price / sales: 0.8×**. Each dollar of revenue is priced at 0.8×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.1×**. The shares trade at 1.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 1.4×**. Enterprise value is 1.4× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -17.7%** (5-yr avg 1.0%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 11.2%**. The inverse of the P/E: 11.2% of the price is earned each year.

## Profitability
- **Gross margin: 29.3%**. Paragon Banking Group PLC keeps 29.3% of revenue after the direct cost of what it sells.
- **Operating margin: 31.0%**. 31.0% of revenue is left after running the business, an exceptional level.
- **Net margin: 14.5%**. 14.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.7%**. 12.7% on shareholders' equity is solid.
- **Return on invested capital: 52.8%**. Return on all capital, debt included, is 52.8%: comfortably above what that capital costs.
- **Return on assets: 1.9%**. Each dollar of assets produces 1.9% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 147.6%** (3-yr 16.8%/yr, 5-yr 32.0%/yr). Revenue grew 147.6% over the last year, against 32.0% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 3.5%** (3-yr -11.3%/yr, 5-yr 19.6%/yr). Earnings per share rose 3.5%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -34.5%/yr**. Free cash flow has compounded at -34.5% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.
- **Cash and short-term investments: 2.4 billionp**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 5.55%** (0p per share, trailing). Paragon Banking Group PLC yields 5.55%, an income-level yield.
- **Payout ratio: 45%**. 45% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 23.5%/yr** (1-yr 3.0%). The dividend has compounded at 23.5% a year over five years, doubling roughly every 3 years at that pace.
- **Shareholder yield: 10.9%**. Dividends plus net buybacks return 10.9% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (12 analysts). 12 analysts cover Paragon Banking Group PLC; the consensus is strong_buy, with an average price target of 1054p (+31% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -5.1%** (YTD -4.0%, 3-mo 12.0%). The shares are down 5.1% over twelve months including dividends.
- **From 52-week high: -13.0%** (18.2% above the low). Trading 13% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 54**. An RSI of 54 is neutral.
- **Beta (1 yr): 1.07** (volatility 23%). Beta of 1.07 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PAG.L · Page: https://foliofundamentals.com/stocks/pag.l

Not investment advice.