PROASSURANCE CORP (PRA) Stock Fundamental Analysis
NYSE:PRA - New York Stock Exchange, Inc. - US74267C1062 - Common Stock - Currency: USD
PRA gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 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
PRA had positive earnings in the past year.
In the past year PRA has reported a negative cash flow from operations.
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: 61.54% of the companies in the same industry are doing better.
PRA has a worse Return On Equity (4.39%) than 78.32% of its industry peers.
PRA has a Return On Invested Capital (0.99%) which is in line with its industry peers.
PRA had an Average Return On Invested Capital over the past 3 years of 0.50%. This 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
With a Profit Margin value of 4.66%, PRA is not doing good in the industry: 66.43% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of PRA has grown nicely.
PRA's Operating Margin of 5.80% is on the low side compared to the rest of the industry. PRA is outperformed by 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRA is destroying value.
PRA has more shares outstanding than it did 1 year ago.
PRA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PRA is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.35 indicates that PRA is not too dependend on debt financing.
PRA has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: PRA outperforms 44.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.13
WACC7.82%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1018.18% over the past year.
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%.
The Revenue has been growing slightly by 2.27% on average over the past years.
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
Based on estimates for the next years, PRA will show a small growth in Earnings Per Share. The EPS will grow by 2.96% on average per year.
Based on estimates for the next years, PRA will show a small growth in Revenue. The Revenue will grow by 1.49% on average per year.
EPS Next Y-5.9%
EPS Next 2Y2.96%
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
PRA is valuated rather expensively with a Price/Earnings ratio of 22.96.
PRA's Price/Earnings ratio is a bit more expensive when compared to the industry. PRA is more expensive than 69.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. PRA is around the same levels.
The Price/Forward Earnings ratio is 24.40, which indicates a rather expensive current valuation of PRA.
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 69.93% 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 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 24.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRA is valued a bit more expensive than the industry average as 60.14% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.65 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y2.96%
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 3.32, PRA has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.57, 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.
PRA has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
DP0%
EPS Next 2Y2.96%
EPS Next 3YN/A
23.19
-0.1 (-0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.51%
Inst Owner Change0%
Ins Owners1.19%
Ins Owner Change3.74%
Market Cap1.18B
Analysts70
Price Target20.66 (-10.91%)
Short Float %0.99%
Short Ratio2.39
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)10.96%
PT rev (3m)10.96%
EPS NQ rev (1m)1.38%
EPS NQ rev (3m)10.8%
EPS NY rev (1m)7.48%
EPS NY rev (3m)7.44%
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 | 22.96 | ||
| Fwd PE | 24.4 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.99 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 18.65 |
EPS(TTM)1.01
EY4.36%
EPS(NY)0.95
Fwd EY4.1%
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
WACC7.82%
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-5.9%
EPS Next 2Y2.96%
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