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 144 industry peers in the Insurance industry. Both the profitability and financial health of PRA have multiple concerns. 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 0.77%, PRA is not doing good in the industry: 61.81% of the companies in the same industry are doing better.
PRA has a worse Return On Equity (3.43%) than 77.08% of its industry peers.
With a Return On Invested Capital value of 0.90%, PRA perfoms like the industry average, outperforming 41.67% 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 4.08%.
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
With a Profit Margin value of 3.76%, PRA is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
PRA's Profit Margin has improved in the last couple of years.
PRA has a worse Operating Margin (5.27%) than 73.61% of its industry peers.
In the last couple of years the Operating Margin of PRA has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRA is destroying value.
PRA has more shares outstanding than it did 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
A Debt/Equity ratio of 0.34 indicates that PRA is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, PRA perfoms like the industry average, outperforming 45.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC9.4%
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.
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 -1.39%.
PRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.27% yearly.
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.
The Revenue is expected to decrease by -0.41% on average over the next years.
EPS Next Y-13%
EPS Next 2Y1.49%
EPS Next 3Y10.52%
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
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
A Price/Earnings ratio of 21.60 indicates a rather expensive valuation of PRA.
Based on the Price/Earnings ratio, PRA is valued a bit more expensive than the industry average as 67.36% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.34, PRA is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.01, the valuation of PRA can be described as rather expensive.
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 70.83% of the companies listed in the same industry.
PRA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 22.01 |
4.2 Price Multiples
63.19% of the companies in the same industry are cheaper than PRA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y1.49%
EPS Next 3Y10.52%
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 3.52.
Compared to the average S&P500 Dividend Yield of 2.44, PRA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
PRA has been paying a dividend for at least 10 years, so it has 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%
22.9
-0.02 (-0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.97%
Inst Owner Change-0.92%
Ins Owners1.29%
Ins Owner Change7.37%
Market Cap1.17B
Analysts49.23
Price Target23.12 (0.96%)
Short Float %5.37%
Short Ratio3.84
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)-5.62%
EPS NQ rev (3m)-5.62%
EPS NY rev (1m)-7.2%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 22.01 | ||
| P/S | 1.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.95 | ||
| P/tB | 1 | ||
| EV/EBITDA | 20.55 |
EPS(TTM)1.06
EY4.63%
EPS(NY)1.04
Fwd EY4.54%
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
WACC9.4%
ROIC/WACC0.1
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-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