Is PGR a high-quality business?

AlphaMadera's AlphaQuality grade scores The Progressive Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how PGR compares to a Buffett-style quality bar.

What is The Progressive Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to PGR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes PGR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

PGR - The Progressive Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $223.23 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Banks, Insurers & Asset Managers

AlphaQuality — archetype-weighted quantitative grade

B 74.1 / 100 composite

Composite Grade

Composite of six pillars weighted for banks, insurers & asset managers businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 25%

C- 46.8

Scored using loss ratio — insurer-archetype substitution.

Loss Ratio 66.1% 47/100

Capital Efficiency

Weight: 15%

A- 85.0

5yr Avg ROE 22.5% 96/100
5yr Share-Count CAGR 0.0% 65/100

Growth Quality

Weight: 10%

A+ 94.3

Scored using premium growth cross-checked against loss-ratio trend — insurer-archetype substitution.

5yr Premium CAGR 15.8% 92/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A 89.1

Scored using reserve development and loss-ratio stability — insurer-archetype substitution.

Reserve Development 1.7% 89/100

Balance Sheet

Weight: 25%

A- 86.9

Scored using premiums-to-surplus — insurer-archetype substitution.

Premiums / Surplus 2.69x 78/100
Interest Coverage (EBIT/Int) 52.16x 100/100

Stability

Weight: 10%

C 51.2

EPS Volatility (σ/μ) 0.84 6/100
Negative-Revenue Years (5) 0/5 100/100
Piotroski F-Score 7 78/100

4 of 5 gurus held; 3 added; 3 full exits.

Holders: 4 -1
Avg Δ position: +482.3%
New buys: 0
Full exits: 3

Loeb sold -100%
Halvorsen sold -100%
Dalio sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — Loss Ratio
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Premium CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — Reserve Development
Balance Sheet (25%) — Premiums / Surplus, Interest Coverage (EBIT/Int)
Stability (10%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.