PROGRESSIVE CORP (PGR)
US7433151039 - Common Stock
Overall PGR gets a fundamental rating of 5 out of 10. We evaluated PGR against 140 industry peers in the Insurance industry. There are concerns on the financial health of PGR while its profitability can be described as average. PGR is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
PGR had positive earnings in the past year.
PGR had a positive operating cash flow in the past year.
In the past 5 years PGR has always been profitable.
Each year in the past 5 years PGR had a positive operating cash flow.
1.2 Ratios
PGR has a Return On Assets of 7.01%. This is amongst the best in the industry. PGR outperforms 90.65% of its industry peers.
Looking at the Return On Equity, with a value of 29.40%, PGR belongs to the top of the industry, outperforming 93.53% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.84%, PGR belongs to the top of the industry, outperforming 90.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PGR is in line with the industry average of 4.27%.
The last Return On Invested Capital (7.84%) for PGR is above the 3 year average (3.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 29.4% | ||
| ROIC | 7.84% |
ROA(3y)3.32%
ROA(5y)5.2%
ROE(3y)13.89%
ROE(5y)20.76%
ROIC(3y)3.98%
ROIC(5y)6.2%
1.3 Margins
PGR's Profit Margin of 10.12% is fine compared to the rest of the industry. PGR outperforms 62.59% of its industry peers.
In the last couple of years the Profit Margin of PGR has declined.
With a Operating Margin value of 13.26%, PGR perfoms like the industry average, outperforming 57.55% of the companies in the same industry.
PGR's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.26% | ||
| PM (TTM) | 10.12% | ||
| GM | N/A |
OM growth 3Y-21.67%
OM growth 5Y-4.38%
PM growth 3Y-22.39%
PM growth 5Y-5.17%
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), PGR is destroying value.
The number of shares outstanding for PGR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, PGR has more shares outstanding
Compared to 1 year ago, PGR has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of PGR is 0.53, which is an excellent value as it means it would take PGR, only 0.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.53, PGR belongs to the top of the industry, outperforming 82.01% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that PGR is not too dependend on debt financing.
PGR has a Debt to Equity ratio (0.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.89
WACC8.81%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 177.68%, which is quite impressive.
Measured over the past 5 years, PGR shows a small growth in Earnings Per Share. The EPS has been growing by 4.05% on average per year.
Looking at the last year, PGR shows a very strong growth in Revenue. The Revenue has grown by 25.20%.
Measured over the past years, PGR shows a quite strong growth in Revenue. The Revenue has been growing by 14.21% on average per year.
EPS 1Y (TTM)177.68%
EPS 3Y-6.48%
EPS 5Y4.05%
EPS Q2Q%71.77%
Revenue 1Y (TTM)25.2%
Revenue growth 3Y13.34%
Revenue growth 5Y14.21%
Sales Q2Q%24.76%
3.2 Future
PGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.10% yearly.
PGR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.58% yearly.
EPS Next Y116.99%
EPS Next 2Y51.05%
EPS Next 3Y33.81%
EPS Next 5Y15.1%
Revenue Next Year22.84%
Revenue Next 2Y19.9%
Revenue Next 3Y16.58%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PGR is valuated rather expensively with a Price/Earnings ratio of 20.36.
Based on the Price/Earnings ratio, PGR is valued a bit more expensive than the industry average as 61.15% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.96. PGR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.90, which indicates a rather expensive current valuation of PGR.
PGR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PGR is more expensive than 64.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. PGR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 18.9 |
4.2 Price Multiples
PGR's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PGR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 16.96 |
4.3 Compensation for Growth
PGR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PGR has a very decent profitability rating, which may justify a higher PE ratio.
PGR's earnings are expected to grow with 33.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)5.03
EPS Next 2Y51.05%
EPS Next 3Y33.81%
5. Dividend
5.1 Amount
PGR has a yearly dividend return of 0.16%, which is pretty low.
Compared to an average industry Dividend Yield of 4.25, PGR is paying slightly less dividend.
With a Dividend Yield of 0.16, PGR pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
5.2 History
The dividend of PGR decreases each year by -16.19%.
PGR has been paying a dividend for at least 10 years, so it has a reliable track record.
PGR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-16.19%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
PGR pays out 10.23% of its income as dividend. This is a sustainable payout ratio.
DP10.23%
EPS Next 2Y51.05%
EPS Next 3Y33.81%
PROGRESSIVE CORP
NYSE:PGR (11/21/2024, 8:04:00 PM)
After market: 264.5 +1.06 (+0.4%)263.44
+6.42 (+2.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap154.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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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 | 20.36 | ||
| Fwd PE | 18.9 | ||
| 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)0.17
PEG (5Y)5.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 29.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.26% | ||
| PM (TTM) | 10.12% | ||
| 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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| 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)177.68%
EPS 3Y-6.48%
EPS 5Y
EPS Q2Q%
EPS Next Y116.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.2%
Revenue growth 3Y13.34%
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