Fundamentals snapshot
PGR · NYQ · Financial Services · Insurance - Property & Casualty
Current price
$229.25
52-week range
$189.20 - $239.38
Market cap
$132.85B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $6.26B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
The Progressive Corporation mainly sells car insurance, but also covers other vehicles like motorcycles and RVs, as well as home and renter's insurance. Their business makes money by collecting premiums from people and businesses who buy their insurance policies. This matters because insurance provides financial protection against unexpected events, and Progressive's ability to manage its costs and collect enough premiums determines how profitable it is.
The Progressive Corporation was founded in 1937 by two lawyers, Joseph M. Lewis and Jack Green, who saw an opportunity to provide vehicle owners with security and protection. They started with a focus on auto insurance, and over time, Progressive became known for its innovative approach, including being one of the first auto insurers to offer drive-in claims service and allowing installment payments for premiums. The company went public in 1971 and has since grown into one of the largest auto insurers in the United States, expanding its offerings beyond personal auto to include commercial and property insurance. Progressive's growth has been fueled by a strategy of disciplined underwriting, leveraging data and technology for pricing, and a dual-channel distribution approach that includes both direct sales and independent agents.
Progressive is an insurance company that provides various types of property and casualty insurance. Think of it like this: when you buy a car, you often need insurance to protect yourself and others in case of an accident. Progressive offers this type of protection, not just for cars, but also for other vehicles like motorcycles, RVs, and boats. They also offer insurance for homes and businesses, acting as a safety net for your belongings and liabilities. Essentially, they collect money from many people in the form of premiums (regular payments for insurance) and then use that money to pay for the damages or losses that a smaller number of people experience.
This is Progressive's largest business segment, making up the vast majority of its revenue, around 85%. It's all about insuring individual customers for their vehicles. This includes standard car insurance for everyday drivers, but also extends to 'specialty lines' like motorcycles, RVs, boats, and other recreational vehicles. Progressive offers these policies through two main ways: directly to consumers online or over the phone, and also through independent insurance agents who can offer policies from various companies, including Progressive. This segment is key because it covers the most common insurance needs for individuals.
This segment focuses on providing insurance for businesses and their vehicles, accounting for about 15% of Progressive's revenue. Instead of insuring a family car, this is about covering things like delivery trucks, dump trucks, tractors, and other vehicles that companies use for their operations. Progressive offers auto-related liability and physical damage insurance for these commercial vehicles. They also provide business-related general liability and commercial property insurance for small businesses, acting as a financial shield against accidents or damage related to business activities.
This is a smaller part of Progressive's business, representing around 4-5% of its total revenue. It involves providing insurance for homes and renters. This means covering damage to a house or apartment due to events like fire, storms, or theft, as well as liability protection if someone gets injured on the property. Progressive often encourages customers to bundle (buy together) their auto and property insurance, which can lead to savings and makes it easier for customers to manage all their insurance needs with one company.
Progressive's main strategy is to keep growing profitably by being the go-to place for all sorts of insurance needs. They are focusing on making their pricing super accurate by using lots of data and technology, especially with things like telematics (which tracks driving behavior) to better understand and price risk. They also want to encourage customers to buy multiple policies, like car and home insurance together, to build stronger, long-term relationships. Additionally, they are working on improving their claims process with new technology and managing the risks associated with property insurance, especially in areas prone to severe weather.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $6.3B. Interest coverage 52.2x.
The Progressive Corporation's profit covers its interest bill about 52.2 times over. which is stronger than every peer shown here.
Total debt $8.39B Interest coverage 52.16x This is the baseline the peer rows are being compared against.
Total debt $7.50B Interest coverage 33.97x -35% vs PGR Carries about 1.5x less debt cushion than PGR.
Total debt $21.38B Interest coverage 18.07x -65% vs PGR Carries about 2.9x less debt cushion than PGR.
Total debt $9.81B Interest coverage 19.34x -63% vs PGR Carries about 2.7x less debt cushion than PGR.
Total debt $9.13B Interest coverage 10.80x -79% vs PGR Carries about 4.8x less debt cushion than PGR.
Total debt $4.38B Interest coverage 24.92x -52% vs PGR Carries about 2.1x less debt cushion than PGR.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know