0.9% earnings growth over 5 years has not materialized into gains for ProAssurance (NYSE:PRA) shareholders over that period

While not a mind-blowing move, it is good to see that the ProAssurance Corporation (NYSE:PRA) share price has gained 10% in the last three months. But that can't change the reality that over the longer term (five years), the returns have been really quite dismal. The share price has failed to impress anyone , down a sizable 56% during that time. So we're hesitant to put much weight behind the short term increase. Of course, this could be the start of a turnaround.

Since ProAssurance has shed US$51m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

See our latest analysis for ProAssurance

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During five years of share price growth, ProAssurance moved from a loss to profitability. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics may better explain the share price move.

Revenue is actually up 5.5% over the time period. So it seems one might have to take closer look at the fundamentals to understand why the share price languishes. After all, there may be an opportunity.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We know that ProAssurance has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for ProAssurance in this interactive graph of future profit estimates.

A Different Perspective

ProAssurance shareholders are up 11% for the year. But that return falls short of the market. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 9% endured over half a decade. So this might be a sign the business has turned its fortunes around. Before deciding if you like the current share price, check how ProAssurance scores on these 3 valuation metrics.

But note: ProAssurance may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.