PROASSURANCE CORP (PRA) Stock Fundamental Analysis
NYSE:PRA - New York Stock Exchange, Inc. - US74267C1062 - Common Stock - Currency: USD
Taking everything into account, PRA scores 2 out of 10 in our fundamental rating. PRA was compared to 143 industry peers in the Insurance industry. PRA has a bad profitability rating. Also its financial health evaluation is rather negative. PRA is quite expensive at the moment. 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.
The reported net income has been mixed in the past 5 years: PRA reported negative net income in multiple 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 0.95%, PRA is not doing good in the industry: 60.84% of the companies in the same industry are doing better.
PRA has a Return On Equity of 4.39%. This is in the lower half of the industry: PRA underperforms 77.62% of its industry peers.
PRA has a Return On Invested Capital (0.99%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PRA is below the industry average of 4.47%.
The last Return On Invested Capital (0.99%) for PRA is above the 3 year average (0.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 4.39% | ||
| ROIC | 0.99% |
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
PRA has a worse Profit Margin (4.66%) than 66.43% of its industry peers.
In the last couple of years the Profit Margin of PRA has grown nicely.
The Operating Margin of PRA (5.80%) is worse than 71.33% of its industry peers.
PRA's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.8% | ||
| PM (TTM) | 4.66% | ||
| 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.
The number of shares outstanding for PRA has been increased compared to 1 year ago.
Compared to 5 years ago, PRA has less shares outstanding
The debt/assets ratio for PRA is higher compared to a year ago.
2.2 Solvency
PRA has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, PRA is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.13
WACC7.71%
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 1018.18%, which is quite impressive.
The Earnings Per Share has been growing by 119.92% on average over the past years. This is a very strong growth
PRA shows a decrease in Revenue. In the last year, the revenue decreased by -0.22%.
PRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.27% yearly.
EPS 1Y (TTM)1018.18%
EPS 3Y-10.31%
EPS 5Y119.92%
EPS Q2Q%820%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y1.68%
Revenue growth 5Y2.27%
Sales Q2Q%-0.54%
3.2 Future
PRA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.28% yearly.
PRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.49% yearly.
EPS Next Y-5.83%
EPS Next 2Y3.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.54%
Revenue Next 2Y1.49%
Revenue Next 3YN/A
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.
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
Based on the Price/Earnings ratio of 22.81, the valuation of PRA can be described as rather expensive.
Based on the Price/Earnings ratio, PRA is valued a bit more expensive than 68.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of PRA to the average of the S&P500 Index (28.88), we can say PRA is valued slightly cheaper.
A Price/Forward Earnings ratio of 24.22 indicates a rather expensive valuation of PRA.
PRA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PRA is more expensive than 73.43% of the companies in the same industry.
PRA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 24.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRA is valued a bit more expensive than the industry average as 62.24% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y3.28%
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.
Compared to an average industry Dividend Yield of 3.22, PRA has a dividend in line with its industry peers.
PRA's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| 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.
The dividend of PRA decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
DP0%
EPS Next 2Y3.28%
EPS Next 3YN/A
23.04
-0.17 (-0.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.51%
Inst Owner Change-3.02%
Ins Owners1.19%
Ins Owner Change3.74%
Market Cap1.18B
Analysts70
Price Target20.74 (-9.98%)
Short Float %3.63%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)124.26%
Min EPS beat(2)110.91%
Max EPS beat(2)137.62%
EPS beat(4)4
Avg EPS beat(4)100.14%
Min EPS beat(4)30.92%
Max EPS beat(4)137.62%
EPS beat(8)5
Avg EPS beat(8)-6.24%
EPS beat(12)6
Avg EPS beat(12)-9%
EPS beat(16)10
Avg EPS beat(16)62.41%
Revenue beat(2)0
Avg Revenue beat(2)-2.8%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)-1.98%
Revenue beat(4)0
Avg Revenue beat(4)-4.1%
Min Revenue beat(4)-7.47%
Max Revenue beat(4)-1.98%
Revenue beat(8)1
Avg Revenue beat(8)-4.41%
Revenue beat(12)3
Avg Revenue beat(12)-2.03%
Revenue beat(16)5
Avg Revenue beat(16)0.98%
PT rev (1m)11.42%
PT rev (3m)11.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.8%
EPS NY rev (1m)0.07%
EPS NY rev (3m)7.52%
Revenue NQ rev (1m)-2.98%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 24.22 | ||
| P/S | 1.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.98 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 18.66 |
EPS(TTM)1.01
EY4.38%
EPS(NY)0.95
Fwd EY4.13%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)-0.21
OCFYN/A
SpS22.15
BVpS23.53
TBVpS22.36
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 4.39% | ||
| ROCE | 1.18% | ||
| ROIC | 0.99% | ||
| ROICexc | 1% | ||
| ROICexgc | 1.14% | ||
| OM | 5.8% | ||
| PM (TTM) | 4.66% | ||
| 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 | 0.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.1 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.8 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.71%
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)1018.18%
EPS 3Y-10.31%
EPS 5Y119.92%
EPS Q2Q%820%
EPS Next Y-5.83%
EPS Next 2Y3.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y1.68%
Revenue growth 5Y2.27%
Sales Q2Q%-0.54%
Revenue Next Year2.54%
Revenue Next 2Y1.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y117.82%
EBIT growth 3Y15.18%
EBIT growth 5Y82.96%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y78.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y78.52%
OCF growth 3YN/A
OCF growth 5YN/A