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Market Cap

US$56.0b

Last Updated

2021/04/10 22:15 UTC

Data Sources

Company Financials +

Executive Summary

The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, general liability, and other specialty property-casualty insurance products and related services in the United States. More Details


Snowflake Analysis

Outstanding track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PGR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PGR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.1%

PGR

0.7%

US Insurance

1.6%

US Market


1 Year Return

19.0%

PGR

35.2%

US Insurance

55.3%

US Market

Return vs Industry: PGR underperformed the US Insurance industry which returned 35.2% over the past year.

Return vs Market: PGR underperformed the US Market which returned 55.3% over the past year.


Shareholder returns

PGRIndustryMarket
7 Day0.1%0.7%1.6%
30 Day3.1%2.5%4.1%
90 Day1.2%9.4%5.5%
1 Year25.3%19.0%38.8%35.2%58.1%55.3%
3 Year80.6%59.3%31.1%21.3%63.8%53.3%
5 Year237.6%186.2%76.0%54.0%120.2%95.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PGR ($95.68) is trading below our estimate of fair value ($124.87)

Significantly Below Fair Value: PGR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PGR is good value based on its PE Ratio (9.9x) compared to the US Insurance industry average (14.2x).

PE vs Market: PGR is good value based on its PE Ratio (9.9x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: PGR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PGR is overvalued based on its PB Ratio (3.4x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Progressive forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGR's earnings are forecast to decline over the next 3 years (-11.4% per year).

Earnings vs Market: PGR's earnings are forecast to decline over the next 3 years (-11.4% per year).

High Growth Earnings: PGR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PGR's revenue (7.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: PGR's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGR's Return on Equity is forecast to be low in 3 years time (16.5%).


Past Performance

How has Progressive performed over the past 5 years?

34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGR has high quality earnings.

Growing Profit Margin: PGR's current net profit margins (13.3%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: PGR's earnings have grown significantly by 34.3% per year over the past 5 years.

Accelerating Growth: PGR's earnings growth over the past year (44.1%) exceeds its 5-year average (34.3% per year).

Earnings vs Industry: PGR earnings growth over the past year (44.1%) exceeded the Insurance industry -9.8%.


Return on Equity

High ROE: PGR's Return on Equity (33.5%) is considered high.


Financial Health

How is Progressive's financial position?


Financial Position Analysis

Short Term Liabilities: PGR's short term assets ($18.1B) do not cover its short term liabilities ($30.8B).

Long Term Liabilities: PGR's short term assets ($18.1B) exceed its long term liabilities ($16.3B).


Debt to Equity History and Analysis

Debt Level: PGR's debt to equity ratio (31.7%) is considered satisfactory.

Reducing Debt: PGR's debt to equity ratio has reduced from 34.9% to 31.7% over the past 5 years.

Debt Coverage: PGR's debt is well covered by operating cash flow (128%).

Interest Coverage: PGR's interest payments on its debt are well covered by EBIT (34.1x coverage).


Balance Sheet


Dividend

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

5.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PGR's dividend (5.12%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: PGR's dividend (5.12%) is in the top 25% of dividend payers in the US market (3.5%)


Stability and Growth of Payments

Stable Dividend: PGR's dividend payments have been volatile in the past 10 years.

Growing Dividend: PGR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.5%), PGR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PGR's dividends in 3 years are forecast to be well covered by earnings (44.1% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Tricia Griffith (56 yo)

4.75yrs

Tenure

US$15,220,523

Compensation

Ms. Susan Patricia Griffith, also known as Tricia, has been the Chief Executive Officer and President of Progressive Corp. since July 1, 2016. Ms. Griffith serves as Director at Federal Express Corporation...


CEO Compensation Analysis

Compensation vs Market: Tricia's total compensation ($USD15.22M) is above average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Tricia's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PGR's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: PGR's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PGR insiders have only sold shares 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

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


Key Information

  • Name: The Progressive Corporation
  • Ticker: PGR
  • Exchange: NYSE
  • Founded: 1937
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$55.987b
  • Shares outstanding: 585.15m
  • Website: https://www.progressive.com

Number of Employees


Location

  • The Progressive Corporation
  • 6300 Wilson Mills Road
  • Mayfield
  • Ohio
  • 44143
  • United States

Listings


Biography

The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, general liability, and other specialty property-casualty insu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 22:15
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.