Progressive Corp Profitability Analysis

PGR
 Stock
  

USD 122.49  0.48  0.39%   

For Progressive Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Progressive Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Progressive Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Progressive Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Progressive Corp over time as well as its relative position and ranking within its peers. Please check Your Equity Center.
  
As of 08/16/2022, Sales per Share is likely to grow to 88.05, while Price to Sales Ratio is likely to drop 1.18. Progressive Corp Consolidated Income is relatively stable at the moment as compared to the past year. Progressive Corp reported last year Consolidated Income of 3.01 Billion. As of 08/16/2022, Net Income is likely to grow to about 3.6 B, while Operating Income is likely to drop slightly above 3.2 B.

Progressive Corp Revenues

51.47 Billion

Is Progressive Corp's industry 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 Progressive Corp. If investors know Progressive 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 Progressive Corp 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 YOY
-0.79
Market Capitalization
71.6 B
Quarterly Revenue Growth YOY
-0.032
Return On Assets
0.0135
Return On Equity
0.0496
The market value of Progressive Corp is measured differently than its book value, which is the value of Progressive that is recorded on the company's balance sheet. Investors also form their own opinion of Progressive Corp's value that differs from its market value or its book value, called intrinsic value, which is Progressive Corp'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 Progressive Corp's market value can be influenced by many factors that don't directly affect Progressive Corp'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 Progressive Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Progressive Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Progressive Corp'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.

Progressive Corp Shares Owned by Institutions vs. Number of Employees Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Progressive Corp's current stock value. Our valuation model uses many indicators to compare Progressive Corp value to that of its competitors to determine the firm's financial worth.
Progressive Corp is considered to be number one stock in number of employees category among related companies. It is considered to be number one stock in shares owned by institutions category among related companies . The ratio of Number of Employees to Shares Owned by Institutions for Progressive Corp is about  570.60 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Progressive Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Progressive Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. 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 Progressive Corp's earnings, one of the primary drivers of an investment's value.

Progressive Number of Employees vs. Competition

Progressive Corp is considered to be number one stock in number of employees category among related companies. The total workforce of Insurance—Property & Casualty industry is at this time estimated at about 873,643. Progressive Corp holds roughly 49,077 in number of employees claiming about 6% of equities under Insurance—Property & Casualty industry.

Progressive Shares Owned by Institutions vs. Number of Employees

Number of Employees shows the total number of permanent full time and part time employees working for a given company and processed through its payroll.
Progressive Corp 
Number of Employees 
 = 
Full Time 
+  
Part Time 
49.08 K
Employee typically refers to an individual working under a contract of employment, whether oral or written, express or implied, and has recognized his or her rights and duties. Most officers of corporations are included as employees and contractors are generally excluded.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Progressive Corp 
Shares Held by Institutions 
 = 
Funds and Banks 
Firms 
86.01 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.

Progressive Shares Owned by Institutions Comparison

Progressive Corp is currently under evaluation in shares owned by institutions category among related companies.

Progressive Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Progressive Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Progressive Corp will eventually generate negative long term returns. The profitability progress is the general direction of Progressive Corp's change in net profit over the period of time. It can combine multiple indicators of Progressive Corp, 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 2022
Accumulated Other Comprehensive Income-108.8 M-111.7 M
Consolidated IncomeB3.3 B
Net Income3.4 B3.6 B
Net Income Common StockB3.2 B
Net Income to Non Controlling Interests5.1 M5.3 M
Operating Income3.8 B3.2 B
Preferred Dividends Income Statement Impact19.3 M19.1 M
Income Tax Expense624 M627.9 M
Net Income Per Employee68.3 K60.5 K
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 Progressive Corporation was founded in 1937 and is headquartered in Mayfield, Ohio. Progressive Corp operates under InsuranceProperty Casualty classification in the United States and is traded on New York Stock Exchange. It employs 49077 people.

Progressive Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Progressive Corp. 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 Progressive Corp 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 Progressive Corp's important profitability drivers and their relationship over time.

Progressive Corp Profitability Trends

Progressive Corp profitability trend refers to the progression of profit or loss within a business. An upward trend means that Progressive Corp'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 Progressive Corp'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.

Progressive Corp 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 Progressive Corp different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Progressive Corp 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 Progressive Corp's future profitability.

Use Progressive Corp 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 Progressive Corp 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 Progressive Corp will appreciate offsetting losses from the drop in the long position's value.

Progressive Corp Pair Trading

Progressive Corp Pair Trading Analysis

The ability to find closely correlated positions to Progressive Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Progressive Corp 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 Progressive Corp - 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 Progressive Corp to buy it.
The correlation of Progressive Corp is a statistical measure of how it moves in relation to other equities. 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 Progressive Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Progressive Corp 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 Progressive Corp 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

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Please check Your Equity Center. Note that the Progressive Corp information on this page should be used as a complementary analysis to other Progressive Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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To fully project Progressive Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Progressive Corp 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 Progressive Corp's income statement, its balance sheet, and the statement of cash flows.
Potential Progressive Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Progressive Corp investors may work on each financial statement separately, they are all related. The changes in Progressive Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Progressive Corp'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.