PROASSURANCE CORP (PRA)
US74267C1062 - Common Stock
Overall PRA gets a fundamental rating of 2 out of 10. We evaluated PRA against 141 industry peers in the Insurance industry. PRA may be in some trouble as it scores bad on both profitability and health. PRA has a expensive valuation and it also scores bad on growth.
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.
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
PRA's Return On Assets of -0.49% is on the low side compared to the rest of the industry. PRA is outperformed by 77.14% of its industry peers.
PRA has a worse Return On Equity (-2.50%) than 77.86% of its industry peers.
With a Return On Invested Capital value of 0.52%, PRA perfoms like the industry average, outperforming 42.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PRA is below the industry average of 3.96%.
The last Return On Invested Capital (0.52%) for PRA is above the 3 year average (0.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.49% | ||
| ROE | -2.5% | ||
| ROIC | 0.52% |
ROA(3y)0.55%
ROA(5y)-0.42%
ROE(3y)2.19%
ROE(5y)-1.27%
ROIC(3y)0.45%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of PRA (3.26%) is worse than 75.00% of its industry peers.
In the last couple of years the Operating Margin of PRA has declined.
The Profit Margin and Gross Margin are not available for PRA so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.26% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y-12.31%
PM growth 3YN/A
PM growth 5YN/A
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.
The number of shares outstanding for PRA has been reduced compared to 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
A Debt/Equity ratio of 0.38 indicates that PRA is not too dependend on debt financing.
PRA has a Debt to Equity ratio (0.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.08
WACC6.92%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for PRA have decreased strongly by -20.00% in the last year.
Looking at the last year, PRA shows a small growth in Revenue. The Revenue has grown by 3.14% in the last year.
The Revenue has been growing slightly by 5.25% on average over the past years.
EPS 1Y (TTM)-20%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%153.33%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y8.46%
Revenue growth 5Y5.25%
Sales Q2Q%-1.41%
3.2 Future
The Earnings Per Share is expected to grow by 194.22% on average over the next years. This is a very strong growth
PRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.09% yearly.
EPS Next Y543.78%
EPS Next 2Y194.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.05%
Revenue Next 2Y0.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
A Price/Earnings ratio of 98.00 indicates a quite expensive valuation of PRA.
PRA's Price/Earnings ratio is rather expensive when compared to the industry. PRA is more expensive than 80.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, PRA is valued quite expensively.
With a Price/Forward Earnings ratio of 16.06, PRA is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRA indicates a slightly more expensive valuation: PRA is more expensive than 65.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PRA to the average of the S&P500 Index (20.59), we can say PRA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98 | ||
| Fwd PE | 16.06 |
4.2 Price Multiples
PRA's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.67 |
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.
PRA's earnings are expected to grow with 194.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y194.22%
EPS Next 3YN/A
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 4.81.
Compared to the average S&P500 Dividend Yield of 2.30, PRA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of PRA decreases each year by -55.56%.
PRA has been paying a dividend for at least 10 years, so it has a reliable track record.
PRA has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-55.56%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
PRA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-9.68%
EPS Next 2Y194.22%
EPS Next 3YN/A
PROASSURANCE CORP
NYSE:PRA (7/26/2024, 7:04:00 PM)
After market: 11.76 0 (0%)11.76
+0.19 (+1.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap599.88M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98 | ||
| Fwd PE | 16.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.49% | ||
| ROE | -2.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.26% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-20%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y543.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.14%
Revenue growth 3Y8.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y