DB:PRK

Stock Analysis Report

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Executive Summary

ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States.


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has ProAssurance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PRK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.9%

PRK

0.5%

DE Insurance

2.6%

DE Market


1 Year Return

-61.2%

PRK

-6.5%

DE Insurance

8.1%

DE Market

Return vs Industry: PRK underperformed the German Insurance industry which returned -7.2% over the past year.

Return vs Market: PRK underperformed the German Market which returned 6.4% over the past year.


Shareholder returns

PRKIndustryMarket
7 Day4.9%0.5%2.6%
30 Day5.8%-3.8%0.6%
90 Day-31.6%11.1%11.5%
1 Year-59.9%-61.2%-1.3%-6.5%10.5%8.1%
3 Year-66.6%-72.1%23.4%7.4%6.3%-2.1%
5 Year-58.9%-70.4%54.3%22.4%15.2%-0.3%

Price Volatility Vs. Market

How volatile is ProAssurance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ProAssurance undervalued compared to its fair value and its price relative to the market?

0.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PRK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PRK's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PRK is unprofitable, so we can't compare its PE Ratio to the DE Insurance industry average.

PE vs Market: PRK is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PRK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PRK is good value based on its PB Ratio (0.6x) compared to the DE Insurance industry average (1x).


Next Steps

Future Growth

How is ProAssurance forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

115.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PRK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PRK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PRK's revenue (0.8% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: PRK's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PRK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ProAssurance performed over the past 5 years?

-31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRK is currently unprofitable.

Growing Profit Margin: PRK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRK is unprofitable, and losses have increased over the past 5 years at a rate of 31.7% per year.

Accelerating Growth: Unable to compare PRK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PRK is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (9.2%).


Return on Equity

High ROE: PRK has a negative Return on Equity (-3.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is ProAssurance's financial position?


Financial Position Analysis

Short Term Liabilities: PRK's short term assets ($1.3B) exceed its short term liabilities ($571.2M).

Long Term Liabilities: PRK's short term assets ($1.3B) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: PRK's debt to equity ratio (20%) is considered satisfactory.

Reducing Debt: PRK's debt to equity ratio has increased from 16.5% to 20% over the past 5 years.

Debt Coverage: PRK's debt is well covered by operating cash flow (35.6%).

Interest Coverage: Insufficient data to determine if PRK's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is ProAssurance current dividend yield, its reliability and sustainability?

1.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRK's dividend (1.32%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: PRK's dividend (1.32%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: PRK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PRK has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: PRK is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Ned Rand (53 yo)

1.08yrs

Tenure

US$3,738,428

Compensation

Mr. Edward Lewis Rand, Jr.., also known as Ned, C.P.A., serves as Chief Executive Officer of ProAssurance Corporation since July 1, 2019, its President since December 3, 2018 and its Director since May 22, ...


CEO Compensation Analysis

Compensation vs Market: Ned's total compensation ($USD3.74M) is above average for companies of similar size in the German market ($USD1.30M).

Compensation vs Earnings: Ned's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
William Starnes
Executive Chairman of the Board11.83yrsUS$1.81m0.39%
$ 2.7m
Edward Rand
CEO, President & Director1.08yrsUS$3.74m0.23%
$ 1.6m
Dana Hendricks
Executive VP & CFO1.92yrsUS$758.57k0.0086%
$ 59.9k
Michael Boguski
President of Specialty Property & Casualty1.25yrsUS$3.06m0.064%
$ 441.6k
Kevin Shook
President of Eastern Alliance Insurance Group1.25yrsUS$1.19m0.028%
$ 194.0k
Lawrence Cochran
Chief Investment Officer18.58yrsno datano data
Michael Stoeckert
CTO & VP6.58yrsno datano data
Frank O'Neil
Senior VP of Corporate Communications & Investor Relations18.92yrsno data0.22%
$ 1.5m
Jeffrey Lisenby
Executive VPno dataUS$1.08m0.12%
$ 799.4k
Kathryn Neville
Chief Compliance Officer & VP6.58yrsno datano data
Noreen Dishart
Chief Human Resources Officer5.33yrsno datano data
Robert Francis
Executive VP of Underwriting & Operations of Specialty P&C1.33yrsUS$214.50kno data

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: PRK's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Starnes
Executive Chairman of the Board11.83yrsUS$1.81m0.39%
$ 2.7m
Edward Rand
CEO, President & Director1.08yrsUS$3.74m0.23%
$ 1.6m
Robert Flowers
Independent Director19.17yrsUS$155.71k0.13%
$ 917.8k
Samuel Di Piazza
Independent Director6.58yrsUS$171.33k0.036%
$ 249.9k
Bruce Angiolillo
Independent Director4.25yrsUS$167.92k0.019%
$ 131.2k
Kedrick Adkins
Independent Director2.25yrsUS$161.42k0.014%
$ 97.9k
Ziad Haydar
Independent Director5.25yrsUS$139.83k0.0057%
$ 39.4k
Magnus Gorrie
Independent Director8.25yrsUS$138.33k0.0094%
$ 65.1k
Frank Spinosa
Independent Director8.25yrsUS$162.42k0.031%
$ 214.4k
Thomas A. Wilson
Lead Independent Director2.58yrsUS$162.17k0.0057%
$ 39.3k
Katisha Vance
Independent Director3.25yrsUS$138.33k0.016%
$ 112.5k
Maye Frei
Independent Director1.25yrsUS$107.33k0.011%
$ 76.6k

4.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: PRK's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PRK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ProAssurance Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ProAssurance Corporation
  • Ticker: PRK
  • Exchange: DB
  • Founded: 1976
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$816.283m
  • Listing Market Cap: US$692.534m
  • Shares outstanding: 53.84m
  • Website: https://www.proassurance.com

Number of Employees


Location

  • ProAssurance Corporation
  • 100 Brookwood Place
  • Birmingham
  • Alabama
  • 35209
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRANYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1991
PRKDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1991

Biography

ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through five segments: Specialty Property a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 20:45
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.