Now trading at a price of $136.31, Progressive has moved 1.0% so far today. In contrast, the S&P 500 index moved -1.1%. Read below for a basic value analysis of Progressive.
Progressive shares moved 25.0% over the last 52 weeks, with a high of $139.18 and a low of $100.81. During this time, the stock outperformed the S&P 500 index by 32.7%. As of January 2022, the company's 50-day average price is $131.0. 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. The large-cap Financial Services company is based in Mayfield, OH. Progressive has returned a 0.3% dividend yield over the last 12 months.
a Steady Stream of Strong Cash Flows with an Upwards Trend:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $38,998 | $42,638 | $47,676 |
| Revenue Growth | n/a | 9.33% | 11.82% |
| Net Margins | 10.18% | 13.38% | 7.03% |
| Net Margins Growth | n/a | 31.43% | -47.46% |
| Earnings Per Share | $6.72 | $9.66 | $5.66 |
| EPS Growth | n/a | 43.75% | -41.41% |
| Free Cash Flow (MM) | $5,898 | $6,682 | $7,518 |
| FCF Growth | n/a | 13.29% | 12.51% |
| Capital Expenditures (MM) | -$364 | -$224 | -$244 |
| LT Debt to Equity | 0.3 | 0.33 | 0.28 |
Progressive Is Currently Fairly Valued:
Compared to the Financial Services sector's average of 13.34, Progressive has a trailing twelve month P/E ratio of 115.5 and, according to its EPS guidance of 7.72, an expected P/E ratio of 17.7. Progressive's PEG ratio is 8.89 based on its 13.0% annual average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.
Progressive's P/B ratio is 5.0 compared to its sector average of 1.95. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 103.4% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 7.35 * 27.169) = $67.03
Progressive's strong cash flow trend and reasonable levels of debt attenuate the company's lofty valuation in terms of earnings and assets.
Progressive Is the Subject of Mixed Market Indicators:
15 analysts are following Progressive and have set target prices ranging from $111 to $174 per share. On average, they have given the company a rating of hold. At the current price of $136.31, PGR is trading -2.03% away from its average analyst target price of $139.13 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 0.5% of the company's shares are tied to short positions. Institutions own 86.5% of Progressive's shares, while the insider ownership rate stands at 0.31%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $6,800,001,840.
