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Progressive Corp PGR

Morningstar Rating
$190.25 +0.77 (0.41%)
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Company Report

Progressive Earnings: Underwriting Results Improve

Narrow-moat Progressive's fourth-quarter results show the company continuing to make good progress in improving its underwriting results. With its peers still struggling, Progressive is in a strong position currently, and we think the company's recent performance supports our favorable view of management. We maintain our $114 per share fair value estimate and see Progressive's shares as being materially overvalued. In our view, the current market price suggests the company's long-term returns will be substantially higher than its historical results, and we don't see a solid basis for that view. We appreciate that the insurer is currently operating from a position of relative strength but see that as a temporary situation.

Price vs Fair Value

PGR is trading at a 67% premium.
Price
$190.25
Fair Value
$956.00
Uncertainty
Medium
1-Star Price
$812.40
5-Star Price
$84.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Progressive has consistently outperformed peers in terms of underwriting margins.

Bears

Progressive operates in an industry that competes almost entirely on price.

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News

Trading Information

Previous Close Price
$189.48
Day Range
$187.79191.32
52-Week Range
$111.41191.95
Bid/Ask
$185.00 / $200.00
Market Cap
$111.43 Bil
Volume/Avg
23 / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
40.50
Price/Sales
1.78
Dividend Yield (Trailing)
0.60%
Dividend Yield (Forward)
0.60%
Total Yield
0.69%

Company Profile

Progressive underwrites private and commercial auto insurance and specialty lines; it has about 18 million personal auto policies in force and is one of the largest auto insurers in the United States. Progressive markets its policies through independent insurance agencies in the U.S. and Canada and directly via the internet and telephone. Its premiums are split roughly equally between the agent and the direct channel. The company also offers commercial auto policies and entered homeowners insurance through an acquisition in 2015.
Sector
Financial Services
Industry
Insurance - Property & Casualty
Stock Style Box
Large Growth
Total Number of Employees
55,100

Competitors

Valuation

Metric
PGR
ALL
TRV
Price/Earnings (Normalized)
40.50169.8825.13
Price/Book Value
5.562.691.98
Price/Sales
1.780.741.22
Price/Cash Flow
34.5712.314.85
Price/Earnings
PGR
ALL
TRV

Financial Strength

Metric
PGR
ALL
TRV
Quick Ratio
Current Ratio
Interest Coverage
14.080.089.97
Quick Ratio
No chart available

Profitability

Metric
PGR
ALL
TRV
Return on Assets (Normalized)
3.58%0.25%2.55%
Return on Equity (Normalized)
18.10%1.72%13.79%
Return on Invested Capital (Normalized)
13.42%1.90%11.35%
Return on Assets
PGR
ALL
TRV
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