ProAssurance Profitability Analysis

PRA Stock  USD 24.04  0.06  0.25%   
Based on the measurements of profitability obtained from ProAssurance's financial statements, ProAssurance may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in February. Profitability indicators assess ProAssurance's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1991-03-31
Previous Quarter
21.9 M
Current Value
1.4 M
Quarterly Volatility
32.9 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, ProAssurance's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's Days Of Sales Outstanding is expected to grow to 265.57, whereas Price To Sales Ratio is forecasted to decline to 0.79. At present, ProAssurance's Operating Income is projected to decrease significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 124.5 M, whereas Accumulated Other Comprehensive Income is projected to grow to (147.4 M). The current year's Gross Profit Margin is expected to grow to 0.50, whereas Gross Profit is forecasted to decline to about 222.7 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.50.26
Way Up
Slightly volatile
For ProAssurance profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ProAssurance to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ProAssurance utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ProAssurance's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ProAssurance over time as well as its relative position and ranking within its peers.
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For information on how to trade ProAssurance Stock refer to our How to Trade ProAssurance Stock guide.The next projected EPS of ProAssurance is estimated to be 0.2 with future projections ranging from a low of 0.17 to a high of 0.25. ProAssurance's most recent 12-month trailing earnings per share (EPS TTM) is at 0.65. Please be aware that the consensus of earnings estimates for ProAssurance is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
ProAssurance is projected to generate 0.2 in earnings per share on the 31st of March 2026. ProAssurance earnings estimates show analyst consensus about projected ProAssurance EPS (Earning Per Share). It derives the highest and the lowest estimates based on ProAssurance's historical volatility. Many public companies, such as ProAssurance, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm. By analyzing ProAssurance's earnings estimates, investors can diagnose different trends across ProAssurance's analyst sentiment over time as well as compare current estimates against different timeframes.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ProAssurance. If investors know ProAssurance will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ProAssurance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.91)
Earnings Share
0.65
Revenue Per Share
21.85
Quarterly Revenue Growth
(0.03)
Return On Assets
0.0093
The market value of ProAssurance is measured differently than its book value, which is the value of ProAssurance that is recorded on the company's balance sheet. Investors also form their own opinion of ProAssurance's value that differs from its market value or its book value, called intrinsic value, which is ProAssurance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ProAssurance's market value can be influenced by many factors that don't directly affect ProAssurance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ProAssurance's value and its price as these two are different measures arrived at by different means. Investors typically determine if ProAssurance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ProAssurance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

ProAssurance Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ProAssurance's current stock value. Our valuation model uses many indicators to compare ProAssurance value to that of its competitors to determine the firm's financial worth.
ProAssurance is rated below average in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about  0.35  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for ProAssurance is roughly  2.86 . At present, ProAssurance's Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the ProAssurance's earnings, one of the primary drivers of an investment's value.

ProAssurance Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

ProAssurance

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0266
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

ProAssurance

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0093
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

ProAssurance Return On Asset Comparison

ProAssurance is currently under evaluation in return on asset category among its peers.

ProAssurance Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ProAssurance, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ProAssurance will eventually generate negative long term returns. The profitability progress is the general direction of ProAssurance's change in net profit over the period of time. It can combine multiple indicators of ProAssurance, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-155.2 M-147.4 M
Operating Income56.8 M106.3 M
Income Before Tax72.5 M124.5 M
Total Other Income Expense Net-30.8 M-32.3 M
Net Income60.7 M94.3 M
Income Tax Expense11.9 M11.3 M
Net Income Applicable To Common Shares47.5 M84.1 M
Net Income From Continuing Ops47.5 M90.8 M
Non Operating Income Net Other85.6 M89.8 M
Interest Income596.7 K566.9 K
Net Interest Income-20.1 M-21.1 M
Change To Netincome65.5 M68.8 M
Net Income Per Share 0.93  1.22 
Income Quality(0.18)(0.17)
Net Income Per E B T 0.96  0.89 

ProAssurance Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on ProAssurance. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ProAssurance position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ProAssurance's important profitability drivers and their relationship over time.

ProAssurance Profitability Trends

ProAssurance profitability trend refers to the progression of profit or loss within a business. An upward trend means that ProAssurance's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is ProAssurance's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

ProAssurance Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between ProAssurance different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards ProAssurance in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down ProAssurance's future profitability.

ProAssurance Earnings Estimation Breakdown

The calculation of ProAssurance's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of ProAssurance is estimated to be 0.2 with the future projection ranging from a low of 0.17 to a high of 0.25. Please be aware that this consensus of annual earnings estimates for ProAssurance is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.17
Lowest
Expected EPS
0.2
0.25
Highest

ProAssurance Earnings Projection Consensus

Suppose the current estimates of ProAssurance's value are higher than the current market price of the ProAssurance stock. In this case, investors may conclude that ProAssurance is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and ProAssurance's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2026Current EPS (TTM)
544.32%
0.0
0.2
0.65

ProAssurance Earnings per Share Projection vs Actual

Actual Earning per Share of ProAssurance refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering ProAssurance predict the company's earnings will be in the future. The higher the earnings per share of ProAssurance, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.

ProAssurance Estimated Months Earnings per Share

For an investor who is primarily interested in generating an income out of investing in entities such as ProAssurance, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of ProAssurance should always be considered in relation to other companies to make a more educated investment decision.

ProAssurance Quarterly Analyst Estimates and Surprise Metrics

Earnings surprises can significantly impact ProAssurance's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
null
nullnullnullnull
2025-11-04
2025-09-300.250.15-0.140 
2025-08-05
2025-06-300.210.420.21100 
2025-05-22
2025-03-310.1960.13-0.06633 
2025-02-25
2024-12-310.19250.360.167587 
2024-11-07
2024-09-300.140.340.2142 
2024-08-08
2024-06-300.10.230.13130 
2024-05-06
2024-03-310.060.080.0233 
2024-02-27
2023-12-310.06-0.05-0.11183 
2023-11-08
2023-09-300.16-0.07-0.23143 
2023-08-08
2023-06-300.10.160.0660 
2023-05-09
2023-03-310.19-0.15-0.34178 
2023-02-27
2022-12-310.140.06-0.0857 
2022-11-08
2022-09-300.2-0.06-0.26130 
2022-08-08
2022-06-300.120.30.18150 
2022-05-09
2022-03-310.180.14-0.0422 
2022-02-21
2021-12-310.170.620.45264 
2021-11-08
2021-09-300.160.250.0956 
2021-08-05
2021-06-300.060.490.43716 
2021-05-05
2021-03-310.020.040.02100 
2021-02-22
2020-12-310.010.060.05500 
2020-11-05
2020-09-300.10.05-0.0550 
2020-08-10
2020-06-30-0.74-0.60.1418 
2020-05-07
2020-03-310.05-0.02-0.07140 
2020-02-20
2019-12-31-1.56-1.270.2918 
2019-11-05
2019-09-300.140.30.16114 
2019-08-07
2019-06-300.140.08-0.0642 
2019-04-25
2019-03-310.350.08-0.2777 
2019-02-21
2018-12-310.180.180.0
2018-11-06
2018-09-300.410.420.01
2018-08-07
2018-06-300.390.480.0923 
2018-05-03
2018-03-310.440.4-0.04
2018-02-21
2017-12-310.620.55-0.0711 
2017-11-06
2017-09-300.390.450.0615 
2017-08-07
2017-06-300.440.4-0.04
2017-05-04
2017-03-310.540.620.0814 
2017-02-22
2016-12-310.640.830.1929 
2016-11-02
2016-09-300.490.46-0.03
2016-08-03
2016-06-300.550.670.1221 
2016-05-09
2016-03-310.50.46-0.04
2016-02-23
2015-12-310.760.73-0.03
2015-11-04
2015-09-300.640.63-0.01
2015-08-06
2015-06-300.640.640.0
2015-05-07
2015-03-310.690.61-0.0811 
2015-02-24
2014-12-310.91.040.1415 
2014-11-05
2014-09-300.740.68-0.06
2014-08-05
2014-06-300.690.690.0
2014-05-06
2014-03-310.70.730.03
2014-02-20
2013-12-311.080.99-0.09
2013-11-06
2013-09-300.810.880.07
2013-08-05
2013-06-300.870.72-0.1517 
2013-05-06
2013-03-310.760.970.2127 
2013-02-19
2012-12-311.581.56-0.02
2012-11-06
2012-09-300.80.860.06
2012-08-06
2012-06-300.760.960.226 
2012-05-07
2012-03-310.710.780.07
2012-02-22
2011-12-311.012.131.12110 
2011-11-02
2011-09-300.640.790.1523 
2011-08-03
2011-06-300.630.870.2438 
2011-05-04
2011-03-310.580.730.1525 
2011-02-23
2010-12-310.681.540.86126 
2010-11-03
2010-09-300.650.650.0
2010-08-04
2010-06-300.640.650.01
2010-05-05
2010-03-310.560.610.05
2010-02-24
2009-12-310.651.210.5686 
2009-11-02
2009-09-300.610.790.1829 
2009-08-03
2009-06-300.530.760.2343 
2009-05-04
2009-03-310.540.5-0.04
2009-02-24
2008-12-310.611.180.5793 
2008-11-03
2008-09-300.590.660.0711 
2008-08-06
2008-06-300.590.680.0915 
2008-05-07
2008-03-310.580.54-0.04
2008-02-26
2007-12-310.570.780.2136 
2007-11-06
2007-09-300.530.610.0815 
2007-08-08
2007-06-300.520.530.01
2007-05-09
2007-03-310.50.540.04
2007-02-27
2006-12-310.490.510.02
2006-11-08
2006-09-300.450.480.03
2006-08-08
2006-06-300.40.460.0615 
2006-05-09
2006-03-310.370.420.0513 
2006-02-28
2005-12-310.340.410.0720 
2005-11-08
2005-09-300.380.450.0718 
2005-08-09
2005-06-300.360.430.0719 
2005-05-10
2005-03-310.330.350.02
2005-02-23
2004-12-310.310.350.0412 
2004-11-09
2004-09-300.280.30.02
2004-08-09
2004-06-300.260.270.01
2004-05-10
2004-03-310.240.23-0.01
2004-02-23
2003-12-310.190.240.0526 
2003-11-12
2003-09-300.160.15-0.01
2003-08-11
2003-06-300.130.130.0
2003-05-12
2003-03-310.10.10.0
2003-02-24
2002-12-310.080.080.0
2002-11-13
2002-09-300.070.090.0228 
2002-08-12
2002-06-300.060.070.0116 
2002-05-13
2002-03-310.050.04-0.0120 
2002-02-25
2001-12-310.050.050.0
2001-11-12
2001-09-300.050.050.0
2001-08-07
2001-06-300.060.05-0.0116 
2001-05-08
2001-03-310.050.050.0
2001-02-21
2000-12-310.110.1-0.01
2000-11-08
2000-09-300.10.110.0110 
2000-08-09
2000-06-300.160.14-0.0212 
2000-05-03
2000-03-310.150.170.0213 
2000-02-09
1999-12-310.250.260.01
1999-11-03
1999-09-300.240.250.01
1999-08-04
1999-06-300.230.240.01
1999-05-05
1999-03-310.220.230.01
1999-02-10
1998-12-310.220.220.0
1998-11-04
1998-09-300.210.220.01
1998-08-12
1998-06-300.20.20.0
1998-05-05
1998-03-310.190.190.0
1998-02-09
1997-12-310.190.20.01
1997-11-04
1997-09-300.180.190.01
1997-08-05
1997-06-300.170.180.01
1997-05-06
1997-03-310.160.170.01
1997-02-10
1996-12-310.160.170.01
1996-11-05
1996-09-300.150.160.01
1996-08-14
1996-06-300.150.160.01
1996-05-07
1996-03-310.150.14-0.01

Use ProAssurance in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ProAssurance position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ProAssurance will appreciate offsetting losses from the drop in the long position's value.

ProAssurance Pair Trading

ProAssurance Pair Trading Analysis

The ability to find closely correlated positions to ProAssurance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ProAssurance when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ProAssurance - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ProAssurance to buy it.
The correlation of ProAssurance is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ProAssurance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ProAssurance moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ProAssurance can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your ProAssurance position

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When determining whether ProAssurance offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of ProAssurance's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Proassurance Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Proassurance Stock:
Check out Your Equity Center.
For information on how to trade ProAssurance Stock refer to our How to Trade ProAssurance Stock guide.
You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
To fully project ProAssurance's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ProAssurance at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ProAssurance's income statement, its balance sheet, and the statement of cash flows.
Potential ProAssurance investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although ProAssurance investors may work on each financial statement separately, they are all related. The changes in ProAssurance's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ProAssurance's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.