(PROS) - ProCentury Corp - PEG ratio currently sits at 0.79

ProCentury Corporation (PROS) beat analysts’ earnings expectations for the past four quarters by an average margin of 14.0%, helping this insurance holding company retain its Zacks #1 Rank status. On Nov 15, the company’s Board of Directors declared a quarterly cash dividend of four cents per share. ProCentury has a price-to-book ratio of 1.8 and its PEG ratio currently sits at 0.79. Its return on equity of 16% tops the industry average of 13%. Full Analysis ProCentury Corporation is a specialty property and casualty insurance holding company. It markets and underwrites general liability, commercial property and multi-peril insurance for small and mid-sized businesses, such as habitational risks, hospitality businesses, artisan contractors, daycare facilities, retail and wholesale stores, fitness centers and special event providers. PROS is the parent company of Century Surety Company. PROS beat analysts’ earnings expectations for the past four quarters by an average margin of 14.0%. Two of those four quarters surprised by a double-digit percentage. Earnings per share are projected to grow 14% over the next 3-5 years, while the industry is expected to grow at an 11% clip. On Nov 1, PROS posted third-quarter profits of $5.1 million, or 39 cents per share, compared to a net loss of $1.8 million, or 14 cents per share, for the prior-year period. The result topped the consensus earnings estimate of 35 cents by 11.4%. Gross premiums written soared 29.5% to $69.3 million, compared to $53.5 million for the third quarter of 2005. For the first nine months of the year, profits came in at $14.8 million, versus $5.3 million for the first nine months of last year. Gross premiums written were $193.0 million, a jump of 23.4% from $156.4 million for the same period in 2005. The combined ratio, a measure of profitability for insurance companies, was 94.7% for the third quarter of 2006 compared to 113.9% for the third quarter of 2005. It was 94.5% for the first nine months of 2006 compared to 101.4% for the same period in 2005. (A ratio less than 100% indicates that the company is turning an underwriting profit, while a ratio greater than 100% indicates one that is paying out more money in claims versus receiving via premiums.) On Nov 15, the Board of Directors declared a quarterly cash dividend of four cents per share. The company has a current dividend yield of 0.85%. PROS is currently trading at a valuation of 12.5x trailing 12-month earnings and at 11.3x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.5x trailing 12-month earnings and at 15.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.8, compared to 4.9 for the market. Its PEG ratio currently sits at 0.79. The company’s return on equity of 16% tops the industry average of 13%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home