ProAssurance Corporation
ProAssurance Corporation Fundamental Analysis
ProAssurance Corporation (PRA) shows weak financial fundamentals with a PE ratio of 37.24, profit margin of 3.07%, and ROE of 2.69%. The company generates $1.1B in annual revenue with weak year-over-year growth of -0.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PRA's fundamental strength across five key dimensions:
Efficiency Score
WeakPRA struggles to generate sufficient returns from assets.
Valuation Score
ModeratePRA shows balanced valuation metrics.
Growth Score
WeakPRA faces weak or negative growth trends.
Financial Health Score
ModeratePRA shows balanced financial health with some risks.
Profitability Score
WeakPRA struggles to sustain strong margins.
Key Financial Metrics
Is PRA Expensive or Cheap?
P/E Ratio
PRA trades at 37.24 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PRA's PEG of -1.23 indicates potential undervaluation.
Price to Book
The market values ProAssurance Corporation at 0.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.73 times EBITDA. This signals the market has high growth expectations.
How Well Does PRA Make Money?
Net Profit Margin
For every $100 in sales, ProAssurance Corporation keeps $3.07 as profit after all expenses.
Operating Margin
Core operations generate 4.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.69 in profit for every $100 of shareholder equity.
ROA
ProAssurance Corporation generates $0.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ProAssurance Corporation generates limited operating cash flow of $-12.71M, signaling weaker underlying cash strength.
Free Cash Flow
ProAssurance Corporation generates weak or negative free cash flow of $-18.23M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.35 in free cash annually.
FCF Yield
PRA converts -1.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How PRA Stacks Against Its Sector Peers
| Metric | PRA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.24 | 18.73 | Worse (Expensive) |
| ROE | 2.69% | 847.00% | Weak |
| Net Margin | 3.07% | 3919.00% | Weak |
| Debt/Equity | 0.35 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 0.61% | -21563.00% (disorted) | Weak |
PRA outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ProAssurance Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
17.49%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
5425.12%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-107.61%
Industry Style: Value, Dividend, Cyclical
Declining