Taking it a step further, there are other niche markets such as fire, earthquake, and hurricane that may be present in one part of the country while non-existent in others. Insurance is a highly competitive industry that typically comes down to price and service.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Progressive Corp income statement, its balance sheet, and the statement of cash flows. Potential Progressive Corp investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Progressive Corp investors may use 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.
The goal of Progressive Corp
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Progressive Corp performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Progressive Corp shares is the value that is considered the true value of the share. If
the intrinsic value of Progressive is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Progressive Corp. Please read more on our
fundamental analysis page.
How effective is Progressive Corp in utilizing its assets?
Progressive Corp reports assets on its Balance Sheet. It represents the amount of Progressive resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Progressive Corp aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Property & Casualty Insurance space. To get a better handle on how balance sheet or income statements item affect Progressive volatility, please check the breakdown of all its
fundamentals.
Are Progressive Corp Earnings Expected to grow?
The
future earnings power of Progressive Corp involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Progressive Corp factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Progressive Corp
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Progressive
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Progressive Corp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Progressive Corp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Progressive one year expected dividend income is about USD0.55 per share.
At this time, Progressive Corp's
Dividends Paid is relatively stable compared to the past year. As of 04/24/2024,
Dividend Paid And Capex Coverage Ratio is likely to grow to 436.54, while
Dividend Yield is likely to drop 0.
Investing in dividend-paying stocks, such as Progressive Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Progressive Corp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Progressive Corp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Progressive Corp Gross Profit
Progressive Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Progressive Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Progressive Corp Gross Profit growth over the last 10 years. Please check Progressive Corp's
gross profit and other
fundamental indicators for more details.
What is driving Progressive Corp Investor Appetite?
Looking at the stock chart using the monthly time frame, you can see that the stock has increased dramatically since the financial crisis of 2007/2008. Insurance is one of those industries that will always be used, despite the market conditions. However, when times get rough, people may be needing insurance money for certain events and if another financial crisis happens, the investments the insurance companies are using may go down in value. Overall, for Progressive, their stock has returned wonderful numbers for their investors post 2008.
There are other insurance companies that play in the same space and you have to take a look at their sales and how they operate. Ensure their investments are safe and they have contingency plans in place if there are unexpected numbers and policies that have to paid out. These types of companies are great to look at from a fundamental analysis because you have to ensure they are liquid enough to pay people.
Taking a look at the risks, there are many we can look at, but here are a few to keep in mind. First, look at the different types of insurances in the different markets and see how they compete. Earthquake insurance may not work for someone in North Dakota but will sell well for someone in California. Ensure the niche sales are competitive with others. Secondly, ensure they are covering the broad market, such as auto insurance and health insurance because these are two of the most notable. Slowing in these could indicate future pressures. Lastly, just ensure they have a respected brand image and customer service because many people complain about customer service and that would be a driving factor for people to shop elsewhere.
If your portfolio can handle more investments, take a look at Progressive and the insurance market and see if it can add value to your portfolio. Research well and compare them against others in the same market, giving you an idea of which ones are providing the best value. If you get stuck, reach out to an investing professional and they can help to point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Progressive Corp. Please refer to our
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