Porch Group, Inc. Fundamental Analysis (NASDAQ: PRCH)
Porch Group, Inc. Fundamental Analysis (NASDAQ: PRCH)
Porch Group, Inc. (NASDAQ: PRCH) shows weak financial fundamentals with a PE ratio of 232.38, profit margin of 2.68%, and ROE of -1.05%. The company generates $0.5B in annual revenue with strong year-over-year growth of 10.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -87.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PRCH's fundamental strength across five key dimensions:
Efficiency Score
WeakPRCH struggles to generate sufficient returns from assets.
Valuation Score
ModeratePRCH shows balanced valuation metrics.
Growth Score
ExcellentPRCH delivers strong and consistent growth momentum.
Financial Health Score
WeakPRCH carries high financial risk with limited liquidity.
Profitability Score
WeakPRCH struggles to sustain strong margins.
Key Financial Metrics
Is PRCH Expensive or Cheap?
P/E Ratio
PRCH trades at 232.38 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PRCH's PEG of -321.02 indicates potential undervaluation.
Price to Book
The market values Porch Group, Inc. at 305.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.99 times EBITDA. This signals the market has high growth expectations.
How Well Does PRCH Make Money?
Net Profit Margin
For every $100 in sales, Porch Group, Inc. keeps $2.68 as profit after all expenses.
Operating Margin
Core operations generate 7.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.05 in profit for every $100 of shareholder equity.
ROA
Porch Group, Inc. generates $1.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Porch Group, Inc. produces operating cash flow of $115.00M, showing steady but balanced cash generation.
Free Cash Flow
Porch Group, Inc. generates strong free cash flow of $102.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.90 in free cash annually.
FCF Yield
PRCH converts 4.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
232.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-321.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
305.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
53.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How PRCH Stacks Against Its Sector Peers
| Metric | PRCH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 232.38 | 20.15 | Worse (Expensive) |
| ROE | -104.73% | 630.00% | Weak |
| Net Margin | 2.68% | -696.00% (disorted) | Weak |
| Debt/Equity | 53.60 | 0.87 | Weak (High Leverage) |
| Current Ratio | 0.81 | 803.39 | Weak Liquidity |
| ROA | 1.64% | 286.00% | Weak |
PRCH outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Porch Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
424.31%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
122.28%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
207.24%
Industry Style: Value, Dividend, Cyclical
High Growth