PROASSURANCE CORP (PRA)
US74267C1062 - Common Stock
PRA gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. PRA has a bad profitability rating. Also its financial health evaluation is rather negative. PRA is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PRA has reported negative net income.
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.
In multiple years PRA reported negative operating cash flow during the last 5 years.
1.2 Ratios
PRA has a Return On Assets of -0.69%. This is in the lower half of the industry: PRA underperforms 79.14% of its industry peers.
PRA has a worse Return On Equity (-3.47%) than 74.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.43%, PRA is in line with its industry, outperforming 41.01% of the companies in the same industry.
PRA had an Average Return On Invested Capital over the past 3 years of 0.45%. This is below the industry average of 4.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.69% | ||
| ROE | -3.47% | ||
| ROIC | 0.43% |
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
PRA has a worse Operating Margin (2.71%) than 66.91% of its industry peers.
In the last couple of years the Operating Margin of PRA has declined.
PRA does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.71% | ||
| 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
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 reduced compared to 1 year ago.
The number of shares outstanding for PRA has been reduced compared to 5 years ago.
The debt/assets ratio for PRA is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.38 indicates that PRA is not too dependend on debt financing.
PRA has a Debt to Equity ratio (0.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.06
WACC6.66%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PRA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -125.00%.
Looking at the last year, PRA shows a small growth in Revenue. The Revenue has grown by 2.72% in the last year.
PRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.25% yearly.
EPS 1Y (TTM)-125%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-183.33%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y8.46%
Revenue growth 5Y5.25%
Revenue growth Q2Q-0.46%
3.2 Future
PRA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 180.92% yearly.
Based on estimates for the next years, PRA will show a small growth in Revenue. The Revenue will grow by 0.22% on average per year.
EPS Next Y467.27%
EPS Next 2Y180.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.54%
Revenue Next 2Y0.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings Ratio is negative for PRA. In the last year negative earnings were reported.
PRA is valuated quite expensively with a Price/Forward Earnings ratio of 34.58.
73.38% of the companies in the same industry are cheaper than PRA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PRA to the average of the S&P500 Index (21.67), we can say PRA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRA is valued a bit cheaper than the industry average as 66.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.6 |
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 180.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y180.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRA has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.36, 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 | 1.53% |
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.
The dividend of PRA decreased in the last 3 years.
Dividend Growth(5Y)-55.56%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
The earnings of PRA are negative and hence is the payout ratio. PRA will probably not be able to sustain this dividend level.
DP-13.93%
EPS Next 2Y180.92%
EPS Next 3YN/A
PROASSURANCE CORP
NYSE:PRA (4/24/2024, 7:23:49 PM)
After market: 13.97 0 (0%)13.97
+0.23 (+1.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap128.38M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 | N/A | ||
| Fwd PE | 34.58 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.69% | ||
| ROE | -3.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.71% | ||
| 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)
Growth
EPS 1Y (TTM)-125%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y467.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.72%
Revenue growth 3Y8.46%
Revenue growth 5Y
Revenue growth 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