Progressive Corp

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PGR : NYSE : Financial
$36.25 | %
Today's Range: 36.2233 - 36.5
Avg. Daily Volume: 2922600.0
01/13/17 - 4:02 PM ET

Financial Analysis


PROGRESSIVE CORP-OHIO's gross profit margin for the third 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 8.47% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)5930.25269.8
EBITDA ($mil)345.8506.3
EBIT ($mil)293.8464.4
Net Income ($mil)198.7278.3


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)9311.77043.8
Total Assets ($mil)33620.829935.0
Total Debt ($mil)3153.92714.3
Equity ($mil)8094.77462.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin5.839.61
EBITDA Margin5.839.6
Operating Margin4.958.81
Sales Turnover0.670.69
Return on Assets2.94.36
Return on Equity12.0817.52
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.280.27
Interest Expense35.334.5
Interest Coverage8.3213.46


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)580.78584.54
Div / share0.00.0
EPS0.340.47
Book value / share13.9412.77
Institutional Own % n/a n/a
Avg Daily Volume2938131.02712859.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 28.29 for the Insurance industry and a discount compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 2.60 indicates valuation on par with the S&P 500 average of 2.84 and a premium versus the industry average of 1.59. The current price-to-sales ratio is well below the S&P 500 average and is also below 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 21.68 Peers 28.29   PGR 8.78 Peers 13.81

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

PGR is trading at a 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 18.10 Peers 17.49   PGR NM Peers 1.96

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 2.60 Peers 1.59   PGR -24.44 Peers 3.95

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 0.93 Peers 1.41   PGR 10.08 Peers 10.38

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

PGR is keeping pace with its peers on the basis of sales growth.

 

 

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