The Progressive Corporation
The Progressive Corporation Fundamental Analysis
The Progressive Corporation (PGR) shows strong financial fundamentals with a PE ratio of 11.81, profit margin of 12.72%, and ROE of 40.02%. The company generates $79.7B in annual revenue with strong year-over-year growth of 21.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PGR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPGR demonstrates superior asset utilization.
Valuation Score
ExcellentPGR trades at attractive valuation levels.
Growth Score
ModeratePGR shows steady but slowing expansion.
Financial Health Score
ModeratePGR shows balanced financial health with some risks.
Profitability Score
ModeratePGR maintains healthy but balanced margins.
Key Financial Metrics
Is PGR Expensive or Cheap?
P/E Ratio
PGR trades at 11.81 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PGR's PEG of -2.16 indicates potential undervaluation.
Price to Book
The market values The Progressive Corporation at 26.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.14 times EBITDA. This is generally considered low.
How Well Does PGR Make Money?
Net Profit Margin
For every $100 in sales, The Progressive Corporation keeps $12.72 as profit after all expenses.
Operating Margin
Core operations generate 16.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $40.02 in profit for every $100 of shareholder equity.
ROA
The Progressive Corporation generates $11.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Progressive Corporation produces operating cash flow of $17.33B, showing steady but balanced cash generation.
Free Cash Flow
The Progressive Corporation generates strong free cash flow of $17.00B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $28.98 in free cash annually.
FCF Yield
PGR converts 14.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
26.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.40
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How PGR Stacks Against Its Sector Peers
| Metric | PGR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.81 | 18.73 | Better (Cheaper) |
| ROE | 40.02% | 847.00% | Weak |
| Net Margin | 12.72% | 3919.00% | Weak |
| Debt/Equity | 0.00 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 11.16% | -21563.00% (disorted) | Strong |
PGR outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Progressive Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.64%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
112.97%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
140.75%
Industry Style: Value, Dividend, Cyclical
High Growth