Proassurance Corp

Finance
Property-Casualty Insurers
www.proassurance.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.17B
PE 22
Debt $426.48M
Cash $54.88M
EV $1.54B
FCF -$19.73M

Earnings

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Sales & Net Margins

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Earnings	$52.74M
EBIT	$63.08M
ROE	4%
ROA	1%
FCF	-$19.73M
Equity	$1.20B
Growth Stability	-339%
PE	22.24
PEG	-4.67
PB	0.98
P/FCF	-59.46
P/S	1.02
Price/Cash	0.05
Debt/Equity	0.35
Debt/FCF	-21.61
Net Margins	5%
Op. Margins	5%
Earnings CAGR	-4%
Sales Growth YoY	-2%
Sales Growth QoQ	2%
Sales CAGR	5%
FCF CAGR	-3%
Equity CAGR	-7%
Earnings Stability	0.03
Earnings Growth YoY	154%

Earnings Growth QoQ	-2%
Earnings CAGR 5Y	-5%
Sales CAGR 5Y	6%
FCF CAGR 5Y	-4%
Equity CAGR 5Y	-6%
Earnings CAGR 3Y	0%
Sales CAGR 3Y	0%
Equity CAGR 3Y	0%
Market Cap	$1.17B
Revenue	$1.15B
Dividend Yield	0%
Payout Ratio	0%
Assets	$5.57B
Total Debt	$426.48M
Cash	$54.88M
Shares Outstanding	51.1M
EV	1.54B
Earnings Score	6%
Moat Score	48%
Safety Score	39%
Final Score	31%
Shares Growth 3y	-3%
Equity Growth QoQ	-2%
Equity Growth YoY	8%

Assets & ROA

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Stockholders Equity & ROE

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ProAssurance Corp is a holding company for property and casualty insurance companies. The company's wholly owned insurance subsidiaries provide professional liability insurance for healthcare professionals and facilities, professional liability insurance for attorneys, and workers' compensation insurance. ProAssurance reports operating results in five segments: Specialty Property and Casualty, Workers' Compensation, Segregated Portfolio Cell Reinsurance, Lloyd's Syndicate, and Corporate. ProAssurance generates the vast majority of its revenue from its Specialty P&C activities, followed by Worker's Compensation.

SEC Filings

Direct access to Proassurance Corp (PRA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Proassurance Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Proassurance Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -4%

Stability 3%

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Proassurance Corp Discounted Cash Flow

Fully customizable DCF calculator online for Proassurance Corp.

Years

Calculation mode

= -$160M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$20M	-$19M	-$19M	-$18M	-$17M	-$17M	-$16M	-$16M	-$15M	-$15M	-$14M	-$144M
DCF		-$17M	-$15M	-$13M	-$12M	-$10M	-$9.2M	-$8.1M	-$7.2M	-$6.3M	-$5.5M	-$55M
Value	-$160M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	15%	17%	12%	5%	0%	-20%	13%	-0%	-3%	5%	5%
ROA	-	3%	3%	1%	-1%	-5%	2%	-0%	-1%	1%	1%
ROE	-	8%	7%	3%	0%	-13%	10%	-0%	-3%	4%	4%

Bad Net Margins (4.58%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	2.84	2.99	1.72	2.08	3.37	6.07	-12.5	-7.85	-21.61	-21.61
Debt over Equity	0.18	0.25	0.26	0.19	0.19	0.21	0.3	0.39	0.39	0.35	0.35
Growth Stability	-	-	-	38%	1%	-339%	-	-	-	100%	-339%

Good Debt/FCF ratio (-21.61)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.35)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-339%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	13%	-0%	2%	13%	-12%	29%	-2%	3%	1%	6%
Earnings YoY growth	-	30%	-29%	-56%	-98%	-18K%	-182%	-100%	10K%	-237%	-5%
Equity YoY growth	-	-8%	-11%	-5%	-1%	-11%	6%	-23%	1%	8%	-6%
FCF YoY growth	-	54%	-12%	21%	-17%	-39%	-17%	-149%	60%	-64%	-4%