ProAssurance Q3 Earnings: Is NYSE:PRA Cheap at 0.6x Price/Book?


ProAssurance Corporation (NYSE:PRA) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.

The company is expected to report earnings of $0.11/share on revenue of $222.1 million. The consensus earnings per share (EPS) of $0.11/share is based on a poll of 5 analysts and represents a decline in eps of −62.0% over the same quarter last year, when the company reported earnings of $0.30/share.

The revenue forecast of $222.1 million based on a poll of 4 analysts implies a year-over-year (YoY) decline in revenue of −8.2%. Last year the company reported $241.9 million in revenue for the quarter.

Expected to report EPS contraction of −62.0% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $222.12 $241.87 −8.2%
EPS $0.11 $0.30 −62.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 3 quarters, and met expectations 1 quarter.

What are your expectations from ProAssurance Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.68 -$0.60 12.0% Beat
Q1, 2020 $0.05 -$0.02 −143.5% Missed
Q4, 2019 -$1.60 -$1.27 20.5% Beat
Q3, 2019 $0.14 $0.30 118.8% Beat
Q2, 2019 $0.15 $0.08 −47.8% Missed
Q1, 2019 $0.34 $0.08 −76.4% Missed
Q4, 2018 $0.18 $0.18 0% Met
Q3, 2018 $0.41 $0.42 3.3% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −2.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 10, 2020 $15.96 $15.62 −2.1% Decline
May 7, 2020 $19.45 $15.95 −18.0% Decline
February 20, 2020 $32.76 $32.70 −0.2% Decline
November 5, 2019 $39.44 $40 1.4% Increase

Fundamentals And Technical Analysis

ProAssurance Corporation is currently trading at $15.43/share, down −2.0% for the day. The company is trading at approximately 37.4% of its 52-week high of $41.25/share. The company’s stock price is down −1.2% since the last earnings report and down −1.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 52.63 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:PRA Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −10.11 and a forward P/E multiple of −26.44.

ProAssurance Corporation’s current share price also implies a price-to-book (P/B) multiple of 0.56. The following table summarizes some other key fundamental ratios:

Data as of November 1, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $15.43
P/E Ratio −10.1x
P/E Ratio (Fwd) −26.4x
PEG Ratio 0.0
Total Debt / Total Capital 26.5%
Levered Free Cash Flow $62.597 million
EV / EBITDA 12.4x


ProAssurance Corporation is a small-cap stock with a market capitalization of $831.5 million and a total enterprise value of $946.4 million. The company operates in the Financials sector and the Insurance industry.

ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through five segments: Specialty Property and Casualty, Workers’ Compensation Insurance, Segregated Portfolio Cell Reinsurance, and Lloyd’s Syndicate. It offers professional liability insurance for healthcare professionals and facilities; professional liability insurance for attorneys; liability insurance for medical technology and life sciences risks; and workers’ compensation insurance, such as guaranteed cost policies, policyholder dividend policies, retrospectively rated policies, and deductible policies, as well as alternative market solutions that include program design, fronting, claims administration, risk management, SPC rental, asset management, and SPC management services for employers, groups, and associations. The company also participates in Lloyd’s of London Syndicate 1729, which underwrites property and casualty insurance, and reinsurance; and Syndicate 6131 that underwrites contingency and specialty property insurance. ProAssurance Corporation markets its products through independent agencies and brokers, as well as an internal sales force. The company was founded in 1976 and is headquartered in Birmingham, Alabama.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at or at +1 (516) 778-6257.

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