PROASSURANCE CORP (PRA) Stock Fundamental Analysis
NYSE:PRA - New York Stock Exchange, Inc. - US74267C1062 - Common Stock - Currency: USD
We assign a fundamental rating of 2 out of 10 to PRA. PRA was compared to 143 industry peers in the Insurance industry. Both the profitability and financial health of PRA have multiple concerns. PRA does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year PRA was profitable.
In the past year PRA has reported a negative cash flow from operations.
In multiple years PRA reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: PRA reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 0.77%, PRA is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
PRA has a Return On Equity of 3.43%. This is in the lower half of the industry: PRA underperforms 76.92% of its industry peers.
PRA's Return On Invested Capital of 0.90% is in line compared to the rest of the industry. PRA outperforms 41.26% of its industry peers.
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 last Return On Invested Capital (0.90%) for PRA is above the 3 year average (0.50%), which is a sign of increasing profitability.
| 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 69.23% 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 74.13% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRA 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.
The debt/assets ratio for PRA is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.34 indicates that PRA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, PRA is in line with its industry, outperforming 44.76% of the companies in the same 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.
PRA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 119.92% yearly.
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 3.08% on average over the next years.
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-6.25%
EPS Next 2Y3.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.88%
Revenue Next 2Y-0.33%
Revenue Next 3Y-0.41%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
PRA is valuated rather expensively with a Price/Earnings ratio of 21.75.
Based on the Price/Earnings ratio, PRA is valued a bit more expensive than the industry average as 67.83% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.55. PRA is around the same levels.
With a Price/Forward Earnings ratio of 21.49, PRA is valued on the expensive side.
73.43% of the companies in the same industry are cheaper than PRA, based on the Price/Forward Earnings ratio.
PRA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 21.49 |
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 64.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.65 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y3.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRA has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
PRA's Dividend Yield is comparable with the industry average which is at 3.10.
Compared to the average S&P500 Dividend Yield of 2.39, 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 2Y3.08%
EPS Next 3YN/A
23.06
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.51%
Inst Owner Change-0.92%
Ins Owners1.19%
Ins Owner Change7.52%
Market Cap1.18B
Analysts49.23
Price Target23.12 (0.26%)
Short Float %5.01%
Short Ratio2.87
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)11.48%
PT rev (3m)24.2%
EPS NQ rev (1m)-6.25%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)7.08%
Revenue NQ rev (1m)-6.17%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-3.15%
Revenue NY rev (3m)-3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 21.49 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.95 | ||
| P/tB | 1 | ||
| EV/EBITDA | 20.65 |
EPS(TTM)1.06
EY4.6%
EPS(NY)1.07
Fwd EY4.65%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)-0.21
OCFYN/A
SpS22
BVpS24.16
TBVpS23.02
PEG (NY)N/A
PEG (5Y)0.18
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-6.25%
EPS Next 2Y3.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y1.68%
Revenue growth 5Y2.27%
Sales Q2Q%-2.42%
Revenue Next Year-1.88%
Revenue Next 2Y-0.33%
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