Progressive Corp

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PGR : NYSE : Financial
$32.54 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 2,642,500
08/29/16 - 4:02 PM ET

Financial Analysis


PROGRESSIVE CORP-OHIO's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

During the same period, stockholders' equity ("net worth") has increased by 6.46% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)5812.45279.6
EBITDA ($mil)366.2603.8
EBIT ($mil)320.0562.2
Net Income ($mil)190.9363.3


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)8530.26437.5
Total Assets ($mil)31958.229304.2
Total Debt ($mil)2664.12739.0
Equity ($mil)7835.57359.8


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin6.311.44
EBITDA Margin6.311.43
Operating Margin5.5110.65
Sales Turnover0.690.69
Return on Assets3.34.52
Return on Equity13.518.0
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.250.27
Interest Expense34.334.9
Interest Coverage9.3316.11


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)581.9585.93
Div / share0.00.0
EPS0.330.62
Book value / share13.4712.56
Institutional Own % n/a n/a
Avg Daily Volume2668004.03530645.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 42.48 for the Insurance industry and a discount compared to the S&P 500 average of 25.13. Conducting a second comparison, its price-to-book ratio of 2.40 indicates a discount versus the S&P 500 average of 2.82 and a premium versus the industry average of 1.53. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, PROGRESSIVE CORP-OHIO seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PGR 17.96 Peers 42.48   PGR 7.77 Peers 11.80

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

PGR is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

PGR is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PGR 15.40 Peers 14.38   PGR NM Peers 1.87

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

PGR is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

PGR's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PGR 2.40 Peers 1.53   PGR -19.65 Peers -3.60

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PGR is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, PGR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PGR 0.85 Peers 1.40   PGR 9.55 Peers 4.77

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

PGR is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

PGR has a sales growth rate that significantly exceeds its peers.

 

 

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