PROASSURANCE CORP (PRA) Stock Fundamental Analysis
NYSE:PRA - US74267C1062 - Common Stock
24 USD
+0.06 (+0.25%)
24 USD
0 (0%)
Taking everything into account, PRA scores 3 out of 10 in our fundamental rating. PRA was compared to 143 industry peers in the Insurance industry. PRA may be in some trouble as it scores bad on both profitability and health. PRA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PRA had positive earnings in the past year.
In the past year PRA has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: PRA reported negative net income in multiple years.
In multiple years PRA reported negative operating cash flow during the last 5 years.
1.2 Ratios
PRA has a Return On Assets (0.89%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 3.82%, PRA is doing worse than 75.52% of the companies in the same industry.
PRA has a Return On Invested Capital of 1.04%. This is comparable to the rest of the industry: PRA outperforms 41.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRA is below the industry average of 4.08%.
The 3 year average ROIC (0.50%) for PRA is below the current ROIC(1.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 3.82% | ||
| ROIC | 1.04% |
ROA(3y)0.08%
ROA(5y)-0.24%
ROE(3y)0.29%
ROE(5y)-0.41%
ROIC(3y)0.5%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 4.39%, PRA is not doing good in the industry: 64.34% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of PRA has grown nicely.
PRA has a Operating Margin of 6.11%. This is in the lower half of the industry: PRA underperforms 70.63% of its industry peers.
PRA's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | 4.39% | ||
| GM | N/A |
OM growth 3Y13.27%
OM growth 5Y78.9%
PM growth 3Y-29.65%
PM growth 5Y116.12%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRA is destroying value.
PRA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PRA has been reduced compared to 5 years ago.
PRA has a worse debt/assets ratio than last year.
2.2 Solvency
PRA has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
PRA has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.13
WACC7.79%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 610.53%, which is quite impressive.
Measured over the past years, PRA shows a very strong growth in Earnings Per Share. The EPS has been growing by 119.92% on average per year.
Looking at the last year, PRA shows a decrease in Revenue. The Revenue has decreased by -2.62% in the last year.
The Revenue has been growing slightly by 2.27% on average over the past years.
EPS 1Y (TTM)610.53%
EPS 3Y-10.31%
EPS 5Y119.92%
EPS Q2Q%126.09%
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y1.68%
Revenue growth 5Y2.27%
Sales Q2Q%-3.12%
3.2 Future
PRA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.52% yearly.
PRA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.50% yearly.
EPS Next Y19.05%
EPS Next 2Y6.61%
EPS Next 3Y10.52%
EPS Next 5YN/A
Revenue Next Year-0.56%
Revenue Next 2Y-0.47%
Revenue Next 3Y-0.5%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.78, PRA is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of PRA indicates a slightly more expensive valuation: PRA is more expensive than 63.64% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. PRA is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 20.91, PRA is valued on the expensive side.
72.03% of the companies in the same industry are cheaper than PRA, based on the Price/Forward Earnings ratio.
PRA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 20.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRA is valued a bit more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.42 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.93
PEG (5Y)0.15
EPS Next 2Y6.61%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.55%, PRA has a reasonable but not impressive dividend return.
PRA's Dividend Yield is comparable with the industry average which is at 3.42.
Compared to the average S&P500 Dividend Yield of 2.32, PRA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
PRA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y6.61%
EPS Next 3Y10.52%
24
+0.06 (+0.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners87.47%
Inst Owner Change8.65%
Ins Owners1.29%
Ins Owner Change7.37%
Market Cap1.23B
Analysts49.23
Price Target23.12 (-3.67%)
Short Float %8.15%
Short Ratio7.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)55.31%
Min EPS beat(2)-34.55%
Max EPS beat(2)145.17%
EPS beat(4)3
Avg EPS beat(4)89.79%
Min EPS beat(4)-34.55%
Max EPS beat(4)145.17%
EPS beat(8)5
Avg EPS beat(8)22.31%
EPS beat(12)6
Avg EPS beat(12)-10.39%
EPS beat(16)9
Avg EPS beat(16)20.44%
Revenue beat(2)0
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-4.09%
Max Revenue beat(4)-1.53%
Revenue beat(8)1
Avg Revenue beat(8)-3.93%
Revenue beat(12)2
Avg Revenue beat(12)-1.67%
Revenue beat(16)4
Avg Revenue beat(16)-1.12%
PT rev (1m)0%
PT rev (3m)11.48%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)13.53%
EPS NY rev (1m)36.84%
EPS NY rev (3m)26.99%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 20.91 | ||
| P/S | 1.11 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.97 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 19.42 |
EPS(TTM)1.35
EY5.63%
EPS(NY)1.15
Fwd EY4.78%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)-0.5
OCFYN/A
SpS21.58
BVpS24.81
TBVpS23.7
PEG (NY)0.93
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 3.82% | ||
| ROCE | 1.24% | ||
| ROIC | 1.04% | ||
| ROICexc | 1.04% | ||
| ROICexgc | 1.17% | ||
| OM | 6.11% | ||
| PM (TTM) | 4.39% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)0.08%
ROA(5y)-0.24%
ROE(3y)0.29%
ROE(5y)-0.41%
ROIC(3y)0.5%
ROIC(5y)N/A
ROICexc(3y)0.51%
ROICexc(5y)N/A
ROICexgc(3y)0.58%
ROICexgc(5y)N/A
ROCE(3y)0.6%
ROCE(5y)N/A
ROICexcg growth 3Y18.48%
ROICexcg growth 5Y73.91%
ROICexc growth 3Y18.73%
ROICexc growth 5Y76.59%
OM growth 3Y13.27%
OM growth 5Y78.9%
PM growth 3Y-29.65%
PM growth 5Y116.12%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC7.79%
ROIC/WACC0.13
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)610.53%
EPS 3Y-10.31%
EPS 5Y119.92%
EPS Q2Q%126.09%
EPS Next Y19.05%
EPS Next 2Y6.61%
EPS Next 3Y10.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y1.68%
Revenue growth 5Y2.27%
Sales Q2Q%-3.12%
Revenue Next Year-0.56%
Revenue Next 2Y-0.47%
Revenue Next 3Y-0.5%
Revenue Next 5YN/A
EBIT growth 1Y79.29%
EBIT growth 3Y15.18%
EBIT growth 5Y82.96%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y70.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y70.58%
OCF growth 3YN/A
OCF growth 5YN/A