PROASSURANCE CORP (PRA)

US74267C1062 - Common Stock

15.175  -0.22 (-1.46%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to PRA. PRA was compared to 141 industry peers in the Insurance industry. PRA may be in some trouble as it scores bad on both profitability and health. PRA does not seem to be growing, but still is valued expensively.



2

1. Profitability

1.1 Basic Checks

PRA had positive earnings in the past year.
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

Looking at the Return On Assets, with a value of 0.75%, PRA is doing worse than 63.31% of the companies in the same industry.
PRA's Return On Equity of 3.49% is on the low side compared to the rest of the industry. PRA is outperformed by 71.94% of its industry peers.
PRA has a Return On Invested Capital (0.91%) which is in line with its industry peers.
PRA had an Average Return On Invested Capital over the past 3 years of 0.35%. This is below the industry average of 4.38%.
The last Return On Invested Capital (0.91%) for PRA is above the 3 year average (0.35%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 0.75%
ROE 3.49%
ROIC 0.91%
ROA(3y)0.55%
ROA(5y)-0.42%
ROE(3y)2.19%
ROE(5y)-1.27%
ROIC(3y)0.35%
ROIC(5y)N/A

1.3 Margins

PRA's Profit Margin of 3.75% is on the low side compared to the rest of the industry. PRA is outperformed by 64.75% of its industry peers.
With a Operating Margin value of 5.75%, PRA is not doing good in the industry: 63.31% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PRA has declined.
Industry RankSector Rank
OM 5.75%
PM (TTM) 3.75%
GM N/A
OM growth 3YN/A
OM growth 5Y-16.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A

2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRA is destroying value.
Compared to 1 year ago, PRA has less shares outstanding
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 0.35 indicates that PRA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.35, PRA is in line with its industry, outperforming 43.88% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.12
WACC7.46%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

2

3. Growth

3.1 Past

The earnings per share for PRA have decreased strongly by -125.00% in the last year.
The Revenue has been growing slightly by 0.96% in the past 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 Q2Q%585.71%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y8.46%
Revenue growth 5Y5.25%
Sales Q2Q%-3.7%

3.2 Future

The Earnings Per Share is expected to grow by 124.38% on average over the next years. This is a very strong growth
Based on estimates for the next years, PRA will show a decrease in Revenue. The Revenue will decrease by -2.00% on average per year.
EPS Next Y851.07%
EPS Next 2Y216.89%
EPS Next 3Y124.38%
EPS Next 5YN/A
Revenue Next Year-5%
Revenue Next 2Y-2.26%
Revenue Next 3Y-2%
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.

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 25.29, which means the current valuation is very expensive for PRA.
Based on the Price/Earnings ratio, PRA is valued a bit more expensive than 74.82% of the companies in the same industry.
PRA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
With a Price/Forward Earnings ratio of 17.15, PRA is valued on the expensive side.
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 64.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.54. PRA is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 25.29
Fwd PE 17.15

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRA is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.67

4.3 Compensation for Growth

PRA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PRA's earnings are expected to grow with 124.38% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y216.89%
EPS Next 3Y124.38%

3

5. Dividend

5.1 Amount

PRA has a Yearly Dividend Yield of 1.55%.
PRA's Dividend Yield is comparable with the industry average which is at 3.09.
PRA's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
Industry RankSector Rank
Dividend Yield 1.55%

5.2 History

The dividend of PRA decreases each year by -55.56%.
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)-55.56%
Div Incr Years1
Div Non Decr Years2

5.3 Sustainability

DP0%
EPS Next 2Y216.89%
EPS Next 3Y124.38%

PROASSURANCE CORP

NYSE:PRA (1/8/2025, 11:32:33 AM)

15.175

-0.22 (-1.46%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)N/A N/A
Inst Owners85.78%
Inst Owner Change0%
Ins Owners1.19%
Ins Owner Change0%
Market Cap776.35M
Analysts70
Price Target18.61 (22.64%)
Short Float %0.95%
Short Ratio1.94
Dividend
Industry RankSector Rank
Dividend Yield 1.55%
Dividend Growth(5Y)-55.56%
DP0%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)129.35%
Min EPS beat(2)121.09%
Max EPS beat(2)137.62%
EPS beat(4)3
Avg EPS beat(4)25.37%
Min EPS beat(4)-188.13%
Max EPS beat(4)137.62%
EPS beat(8)4
Avg EPS beat(8)-27.11%
EPS beat(12)6
Avg EPS beat(12)4.24%
EPS beat(16)10
Avg EPS beat(16)86.36%
Revenue beat(2)0
Avg Revenue beat(2)-5.54%
Min Revenue beat(2)-7.47%
Max Revenue beat(2)-3.62%
Revenue beat(4)0
Avg Revenue beat(4)-6.43%
Min Revenue beat(4)-11.31%
Max Revenue beat(4)-3.32%
Revenue beat(8)2
Avg Revenue beat(8)-0.32%
Revenue beat(12)4
Avg Revenue beat(12)-0.08%
Revenue beat(16)6
Avg Revenue beat(16)2.22%
PT rev (1m)0%
PT rev (3m)8.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.01%
EPS NY rev (1m)-1.64%
EPS NY rev (3m)30.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)-0.84%
Valuation
Industry RankSector Rank
PE 25.29
Fwd PE 17.15
P/S 0.68
P/FCF N/A
P/OCF N/A
P/B 0.63
P/tB 0.66
EV/EBITDA 13.67
EPS(TTM)0.6
EY3.95%
EPS(NY)0.88
Fwd EY5.83%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)-0.27
OCFYN/A
SpS22.4
BVpS24.07
TBVpS22.87
PEG (NY)0.03
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.75%
ROE 3.49%
ROCE 1.15%
ROIC 0.91%
ROICexc 0.92%
ROICexgc 1.05%
OM 5.75%
PM (TTM) 3.75%
GM N/A
FCFM N/A
ROA(3y)0.55%
ROA(5y)-0.42%
ROE(3y)2.19%
ROE(5y)-1.27%
ROIC(3y)0.35%
ROIC(5y)N/A
ROICexc(3y)0.35%
ROICexc(5y)N/A
ROICexgc(3y)0.41%
ROICexgc(5y)N/A
ROCE(3y)0.44%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y-16.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF N/A
Debt/EBITDA 4.98
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
WACC7.46%
ROIC/WACC0.12
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)-125%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%585.71%
EPS Next Y851.07%
EPS Next 2Y216.89%
EPS Next 3Y124.38%
EPS Next 5YN/A
Revenue 1Y (TTM)0.96%
Revenue growth 3Y8.46%
Revenue growth 5Y5.25%
Sales Q2Q%-3.7%
Revenue Next Year-5%
Revenue Next 2Y-2.26%
Revenue Next 3Y-2%
Revenue Next 5YN/A
EBIT growth 1Y54.79%
EBIT growth 3YN/A
EBIT growth 5Y-11.81%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-221.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-221.64%
OCF growth 3YN/A
OCF growth 5YN/A