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Progressive (NYSE:PGR) Mohanram G-Score

: 4 (As of Sep. 2022)
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Mohanram G-Score is a financial indicator developed by professor Partha Mohanram to help investors find the best investment opportunities in the growth stocks. Companies have higher G-score tends to generate higher return. According to his study, the best growth stocks that have a G-Score greater than 6 tend to beat the market, while those with a G-Score lower than 1 tend to have negative absolute returns.

Thus, the zones of discrimination were as such:

Good or high score = 6, 7, 8
Bad or low score = 0, 1

Progressive has an G-score of 4.

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

PGR' s Mohanram G-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 5
Current: 4

During the past 13 years, the highest Piotroski G-score of Progressive was 5. The lowest was 2. And the median was 5.


Progressive (NYSE:PGR) Mohanram G-Score Historical Data

The historical data trend for Progressive's Mohanram G-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
Mohanram G-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 5.00 5.00 4.00 4.00

Progressive Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Mohanram G-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 4.00 4.00 4.00 4.00 4.00

Progressive (NYSE:PGR) Mohanram G-Score Competitive Comparison

For the Insurance - Property & Casualty subindustry, Progressive's Mohanram G-Score, along with its competitors' market caps and Mohanram G-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 (NYSE:PGR) Mohanram G-Score Distribution

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

* The bar in red indicates where Progressive's Mohanram G-Score falls into.



Progressive Mohanram G-Score Calculation

The calculation of the Mohanram G-score consists of eight criteria. Assign one point for each criterion met, then add up all the points to get the G-Score.

Profitability

Question 1. Return on Assets (ROA)

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. It measures how well a company uses its asset to generate earnings.

Score 1 if ROA > ROA Industry Median, 0 otherwise.

Question 2. Cash ROA

Cash ROA equals to Cash Flow from Operations divided by average Total Assets. It measures how well a company uses its asset to generate cash.

Score 1 if Cash ROA > Cash ROA Industry Median, 0 otherwise.

Question 3. CFO and Net Income

Score 1 if CFO > Net Income, 0 otherwise.

Earnings Predictability

Question 4. Earnings Variability

Earnings Variability is measured as the variance of a firm's ROA in the past five years.

Score 1 if Earnings Variability < Earnings Variability Industry Median, 0 otherwise.

Question 5. Sales Growth Variability

Sales Growth Variability is measured as the 5-year variance in sales growth.

Score 1 if Sales Growth Variability < Sales Growth Variability Industry Median, 0 otherwise.

Accounting Conservatism

Question 6. Research & Development Intensity

Research & Development Intensity is calcualted by Research & Development divided by the beginning Total Assets.

Score 1 if Research & Development Intensity > Research & Development Intensity Industry Median, 0 otherwise.

Question 7. CAPEX Intensity

CAPEX Intensity is calcualted by Capital Expenditure divided by the beginning Total Assets.

Score 1 if CAPEX Intensity > CAPEX Intensity Industry Median, 0 otherwise.

Question 8. Advertising Expenditure Intensity

Advertising Expenditure Intensity is calcualted by Advertising Expenditure divided by the beginning Total Assets. Note that Advertising Expenditure is not reported as a seperate line item for many companies, thus Selling, General, & Admin. Expense is used in this calculation.

Score 1 if Advertising Expenditure Intensity > Advertising Expenditure Intensity Industry Median, 0 otherwise.

* 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.

* Note that all the Industry Median used for comparison in his original research, are substituted with Sector Median due to the limitation of data within certain countries.

Good or high score = 6, 7, 8
Bad or low score = 0, 1

Progressive has an G-score of 4.

Progressive  (NYSE:PGR) Mohanram G-Score Explanation

Partha Mohanram is the John H. Watson Chair in Value Investing at Rotman and the Acting Vice-Dean of Research Strategy and Resources.

In 2000, he wrote a research paper called "Separating Winners from Losers Among Low Book-to-Market Stocks Using Financial Statement Analysis".

This paper tests whether a strategy based on financial statement analysis of low book-to-market (growth) stocks is successful in differentiating between winners and losers in terms of future stock performance. Based on the research, a strategy based on buying high G-score (6, 7 or 8) firms and shorting low G-score (0 or 1) firms consistently earns significant excess returns. Further, the results do not support a risk based explanation for the book-to-market effect as the strategy returns positive returns in all years, and firms that ex-ante appear less risky have better future returns.

To conclude, one can use a modified fundamental analysis strategy (G-score) to identify mispricing and earn substantial abnormal returns.


Progressive Mohanram G-Score Related Terms

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


Progressive (NYSE:PGR) 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

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