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Progressive Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Progressive has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Progressive's Piotroski F-Score or its related term are showing as below:

PGR' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of Progressive was 9. The lowest was 2. And the median was 6.


Progressive Piotroski F-Score Historical Data

The historical data trend for Progressive's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Progressive Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 6.00 8.00 6.00 5.00

Progressive Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 5.00 4.00 4.00

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Progressive's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Progressive Piotroski F-Score Distribution

For the Insurance industry and Financial Services sector, Progressive's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Progressive's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 118.5 + 962.3 + 313.9 + -542.9 = $852 Mil.
Cash Flow from Operations was 2371.2 + 452.1 + 2502.3 + 1389.6 = $6,715 Mil.
Revenue was 11852.6 + 12485.1 + 11835.8 + 11513.3 = $47,687 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(69824.3 + 72618.1 + 71132.3 + 73929.6 + 73057.2) / 5 = $72112.3 Mil.
Total Assets at the begining of this year (Jun21) was $69,824 Mil.
Long-Term Debt & Capital Lease Obligation was $6,387 Mil.
Total Assets was $73,057 Mil.
Total Liabilities was $57,405 Mil.
Net Income was 1530.8 + 1684.3 + 1480 + 790.1 = $5,485 Mil.

Revenue was 10942.5 + 11410.3 + 11439.6 + 11899.2 = $45,692 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(59406.1 + 62890.8 + 64098.3 + 65413.3 + 69824.3) / 5 = $64326.56 Mil.
Total Assets at the begining of last year (Jun20) was $59,406 Mil.
Long-Term Debt & Capital Lease Obligation was $4,898 Mil.
Total Assets was $69,824 Mil.
Total Liabilities was $51,149 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Progressive's current Net Income (TTM) was 852. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Progressive's current Cash Flow from Operations (TTM) was 6,715. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=851.8/69824.3
=0.01219919

ROA (Last Year)=Net Income/Total Assets (Jun20)
=5485.2/59406.1
=0.09233395

Progressive's return on assets of this year was 0.01219919. Progressive's return on assets of last year was 0.09233395. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Progressive's current Net Income (TTM) was 852. Progressive's current Cash Flow from Operations (TTM) was 6,715. ==> 6,715 > 852 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=6386.5/72112.3
=0.08856325

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=4897.6/64326.56
=0.07613651

Progressive's gearing of this year was 0.08856325. Progressive's gearing of last year was 0.07613651. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Jun22)=Total Assets/Total Liabilities
=73057.2/57404.5
=1.27267375

Current Ratio (Last Year: Jun21)=Total Assets/Total Liabilities
=69824.3/51148.7
=1.36512365

Progressive's current ratio of this year was 1.27267375. Progressive's current ratio of last year was 1.36512365. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Progressive's number of shares in issue this year was 586.5. Progressive's number of shares in issue last year was 586.8. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=851.8/47686.8
=0.01786239

Net Margin (Last Year: TTM)=Net Income/Revenue
=5485.2/45691.6
=0.12004832

Progressive's net margin of this year was 0.01786239. Progressive's net margin of last year was 0.12004832. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=47686.8/69824.3
=0.68295422

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=45691.6/59406.1
=0.76913987

Progressive's asset turnover of this year was 0.68295422. Progressive's asset turnover of last year was 0.76913987. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Progressive has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Progressive  (NYSE:PGR) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Progressive Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Progressive's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Progressive Business Description

Progressive logo
Address
6300 Wilson Mills Road, Mayfield Village, OH, USA, 44143
Progressive underwrites private and commercial auto insurance and specialty lines; it has over 20 million personal auto policies in force and is the fourth- largest auto insurer in the United States. Progressive markets its policies through independent insurance agencies in the U.S. and Canada and directly via the internet and telephone. Its premiums are split roughly equally between the agent and the direct channel. The company also offers commercial auto policies and entered homeowners insurance through an acquisition in 2015.
Executives
Craig Pamela director C/O ACCENTURE 161 N CLARK STREET CHICAGO IL 60601
Clawson William L. Ii officer: Chief Human Resources Officer C/O THE PROGRESSIVE CORPORATION 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Kent Remi officer: Chief Marketing Officer 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Bauer Jonathan S. officer: Chief Investment Officer 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Marshall Mariann Wojtkun officer: Chief Accounting Officer C/O THE PROGRESSIVE CORPORATION 6300 WILSON MILLS RD. MAYFIELD VILLAGE OH 44143
Tighe Jan E director C/O GOLDMAN SACHS & CO. LLC 200 WEST STREET NEW YORK NY 10282
Snyder Barbara R director 127 PUBLIC SQUARE CLEVELAND OH 44114
Quigg Andrew J officer: Chief Strategy Officer C/O THE PROGRESSIVE CORPORATION 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Bleser Philip director 8760 CLAY ROAD SUITE 100 HOUSTON TX 77494
Broz Steven officer: Chief Information Officer C/O THE PROGRESSIVE CORPORATION 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Niederst Lori A officer: CRM President C/O THE PROGRESSIVE CORPORATION 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Bailo Karen officer: Commercial Lines President 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Mascaro Daniel P officer: Vice Pres, Secretary and CLO C/O THE PROGRESSIVE CORPORATION 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Murphy John Jo officer: Claims President C/O THE PROGRESSIVE CORPORATION 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Callahan Patrick K officer: Personal Lines President C/O THE PROGRESSIVE CORPORATION 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143

Progressive Headlines

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