Progressive Corp (PGR) stock analysis

P/E below its 5-year median

Progressive's P/E of 11.8 is below its own 5-year median of 20.5.

P/E above the industry

Progressive's P/E of 11.8 is above the Fire, Marine, and Casualty Insurance median of 10.4.

P/S above the industry

Progressive's price-to-sales of 1.48 is above the Fire, Marine, and Casualty Insurance median of 1.28.

P/B above the industry

Progressive's price-to-book of 3.94 is above the Fire, Marine, and Casualty Insurance median of 1.62.

Trading below fair value

The share price of $233.53 is below our fair value estimate of $248.60.

Margin of safety under 20%

The price is 6.1% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 20.9% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 154% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 8.5% over the last twelve months, against a 5-year average of 14.7% a year.

Growing faster than the industry

Revenue grew 7.7% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 5.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity over 15%

Return on equity was 33.2% over the last twelve months and averaged 24.4% over five years.

Return on assets over 1%

Return on assets was 9.3%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Progressive's return on equity of 33.2% is above the Fire, Marine, and Casualty Insurance median of 15.9%.

Earnings grew over 5 years

Net income grew 14.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.7% over the last twelve months, against a 5-year average of 7.8%.

Net margin above the industry

Progressive's net margin of 12.7% is above the Fire, Marine, and Casualty Insurance median of 12.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

Progressive paid dividends worth 6.0% of the share price over the last twelve months.

Yield above Treasuries

The 6.0% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Progressive yields 6.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 70.1% of net income.

Covered by free cash flow

Dividends take 53.5% of free cash flow.