PROASSURANCE CORP (PRA) Stock Fundamental Analysis
NYSE:PRA - New York Stock Exchange, Inc. - US74267C1062 - Common Stock - Currency: USD
Overall PRA gets a fundamental rating of 2 out of 10. We evaluated PRA against 145 industry peers in the Insurance industry. PRA has a bad profitability rating. Also its financial health evaluation is rather negative. PRA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PRA was profitable.
PRA had a negative operating cash flow in the past year.
In multiple years PRA reported negative net income over the last 5 years.
In multiple years PRA reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.77%, PRA is doing worse than 61.38% of the companies in the same industry.
PRA has a Return On Equity of 3.43%. This is in the lower half of the industry: PRA underperforms 76.55% of its industry peers.
With a Return On Invested Capital value of 0.90%, PRA perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
PRA had an Average Return On Invested Capital over the past 3 years of 0.50%. This is below the industry average of 4.07%.
The 3 year average ROIC (0.50%) for PRA is below the current ROIC(0.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 3.43% | ||
| ROIC | 0.9% |
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
The Profit Margin of PRA (3.76%) is worse than 68.97% of its industry peers.
In the last couple of years the Profit Margin of PRA has grown nicely.
Looking at the Operating Margin, with a value of 5.27%, PRA is doing worse than 73.79% of the companies in the same industry.
PRA's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.27% | ||
| PM (TTM) | 3.76% | ||
| 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
PRA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PRA has more shares outstanding than it did 1 year ago.
PRA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PRA has a worse debt to assets ratio.
2.2 Solvency
PRA has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PRA (0.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.11
WACC7.91%
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 783.33%, 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.
The Revenue has decreased by -1.39% in the past year.
The Revenue has been growing slightly by 2.27% on average over the past years.
EPS 1Y (TTM)783.33%
EPS 3Y-10.31%
EPS 5Y119.92%
EPS Q2Q%62.5%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y1.68%
Revenue growth 5Y2.27%
Sales Q2Q%-2.42%
3.2 Future
The Earnings Per Share is expected to grow by 10.52% on average over the next years. This is quite good.
Based on estimates for the next years, PRA will show a decrease in Revenue. The Revenue will decrease by -0.41% on average per year.
EPS Next Y-13%
EPS Next 2Y1.49%
EPS Next 3Y10.52%
EPS Next 5YN/A
Revenue Next Year-2.16%
Revenue Next 2Y-0.8%
Revenue Next 3Y-0.41%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.47, which indicates a rather expensive current valuation of PRA.
PRA's Price/Earnings ratio is a bit more expensive when compared to the industry. PRA is more expensive than 66.90% of the companies in the same industry.
PRA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
PRA is valuated rather expensively with a Price/Forward Earnings ratio of 22.90.
74.48% 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 similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 22.9 |
4.2 Price Multiples
PRA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PRA is more expensive than 62.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.17 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y1.49%
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 3.67.
Compared to the average S&P500 Dividend Yield of 2.35, 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 2Y1.49%
EPS Next 3Y10.52%
23.82
+0.02 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.97%
Inst Owner Change0%
Ins Owners1.29%
Ins Owner Change7.37%
Market Cap1.22B
Analysts49.23
Price Target23.12 (-2.94%)
Short Float %5.68%
Short Ratio5.35
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)38.18%
Min EPS beat(2)-34.55%
Max EPS beat(2)110.91%
EPS beat(4)3
Avg EPS beat(4)83.77%
Min EPS beat(4)-34.55%
Max EPS beat(4)137.62%
EPS beat(8)5
Avg EPS beat(8)11.77%
EPS beat(12)6
Avg EPS beat(12)-9.85%
EPS beat(16)9
Avg EPS beat(16)53%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-3.65%
Min Revenue beat(4)-7.47%
Max Revenue beat(4)-1.53%
Revenue beat(8)1
Avg Revenue beat(8)-3.48%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)5
Avg Revenue beat(16)1.72%
PT rev (1m)0%
PT rev (3m)11.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)-7.2%
EPS NY rev (3m)-7.55%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-7.17%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 22.9 | ||
| P/S | 1.08 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.99 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 21.17 |
EPS(TTM)1.06
EY4.45%
EPS(NY)1.04
Fwd EY4.37%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)-0.21
OCFYN/A
SpS22
BVpS24.16
TBVpS23.02
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 3.43% | ||
| ROCE | 1.07% | ||
| ROIC | 0.9% | ||
| ROICexc | 0.91% | ||
| ROICexgc | 1.02% | ||
| OM | 5.27% | ||
| PM (TTM) | 3.76% | ||
| 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-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.62 | ||
| 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-Score5
WACC7.91%
ROIC/WACC0.11
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)783.33%
EPS 3Y-10.31%
EPS 5Y119.92%
EPS Q2Q%62.5%
EPS Next Y-13%
EPS Next 2Y1.49%
EPS Next 3Y10.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y1.68%
Revenue growth 5Y2.27%
Sales Q2Q%-2.42%
Revenue Next Year-2.16%
Revenue Next 2Y-0.8%
Revenue Next 3Y-0.41%
Revenue Next 5YN/A
EBIT growth 1Y66.59%
EBIT growth 3Y15.18%
EBIT growth 5Y82.96%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y85.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y85.56%
OCF growth 3YN/A
OCF growth 5YN/A