EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
USA - NYSE:EIG - US2922181043 - Common Stock
40.73 USD
+0.44 (+1.09%)
40.73 USD
0 (0%)
Taking everything into account, EIG scores 4 out of 10 in our fundamental rating. EIG was compared to 147 industry peers in the Insurance industry. EIG has an average financial health and profitability rating. EIG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EIG was profitable.
In the past year EIG had a positive cash flow from operations.
Each year in the past 5 years EIG has been profitable.
Each year in the past 5 years EIG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.85%, EIG is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
EIG has a Return On Equity (9.33%) which is comparable to the rest of the industry.
EIG has a better Return On Invested Capital (2.88%) than 60.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EIG is in line with the industry average of 4.49%.
The 3 year average ROIC (2.84%) for EIG is below the current ROIC(2.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 9.33% | ||
| ROIC | 2.88% |
ROA(3y)2.66%
ROA(5y)2.84%
ROE(3y)9.29%
ROE(5y)9.52%
ROIC(3y)2.84%
ROIC(5y)2.96%
1.3 Margins
With a decent Profit Margin value of 11.37%, EIG is doing good in the industry, outperforming 68.71% of the companies in the same industry.
In the last couple of years the Profit Margin of EIG has declined.
EIG's Operating Margin of 13.97% is fine compared to the rest of the industry. EIG outperforms 60.54% of its industry peers.
EIG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.97% | ||
| PM (TTM) | 11.37% | ||
| GM | N/A |
OM growth 3Y-7.38%
OM growth 5Y-6.44%
PM growth 3Y-7.41%
PM growth 5Y-6.45%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
EIG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EIG has less shares outstanding
The number of shares outstanding for EIG has been reduced compared to 5 years ago.
Compared to 1 year ago, EIG has an improved debt to assets ratio.
2.2 Solvency
There is no outstanding debt for EIG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC8.73%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
EIG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.03%.
EIG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.11% yearly.
EIG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.32%.
Measured over the past years, EIG shows a small growth in Revenue. The Revenue has been growing by 1.05% on average per year.
EPS 1Y (TTM)-14.03%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-56.36%
Revenue 1Y (TTM)2.32%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%13.5%
3.2 Future
EIG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.69% yearly.
The Revenue is expected to grow by 0.00% on average over the next years.
EPS Next Y-29.15%
EPS Next 2Y-12.67%
EPS Next 3Y-6.69%
EPS Next 5YN/A
Revenue Next Year-0.34%
Revenue Next 2Y-0.33%
Revenue Next 3Y0%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.31, the valuation of EIG can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of EIG is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.19. EIG is valued rather cheaply when compared to this.
EIG is valuated correctly with a Price/Forward Earnings ratio of 14.32.
Based on the Price/Forward Earnings ratio, EIG is valued a bit more expensive than 61.22% of the companies in the same industry.
EIG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
EIG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EIG is cheaper than 70.07% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as EIG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.82 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
A cheap valuation may be justified as EIG's earnings are expected to decrease with -6.69% in the coming years.
PEG (NY)N/A
PEG (5Y)3.95
EPS Next 2Y-12.67%
EPS Next 3Y-6.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.07%, EIG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, EIG pays a bit more dividend than its industry peers.
EIG's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
On average, the dividend of EIG grows each year by 6.16%, which is quite nice.
EIG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of EIG decreased recently.
Dividend Growth(5Y)6.16%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
29.97% of the earnings are spent on dividend by EIG. This is a low number and sustainable payout ratio.
DP29.97%
EPS Next 2Y-12.67%
EPS Next 3Y-6.69%
40.73
+0.44 (+1.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.75%
Inst Owner Change0.41%
Ins Owners0.96%
Ins Owner Change1.43%
Market Cap957.56M
Revenue(TTM)889.50M
Net Income(TTM)101.10M
Analysts74.29
Price Target46.92 (15.2%)
Short Float %2.13%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend1.21
Dividend Growth(5Y)6.16%
DP29.97%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.07%
Min EPS beat(2)-51.85%
Max EPS beat(2)15.7%
EPS beat(4)3
Avg EPS beat(4)-7.13%
Min EPS beat(4)-51.85%
Max EPS beat(4)15.7%
EPS beat(8)5
Avg EPS beat(8)-1%
EPS beat(12)9
Avg EPS beat(12)7.39%
EPS beat(16)11
Avg EPS beat(16)6.44%
Revenue beat(2)1
Avg Revenue beat(2)2.17%
Min Revenue beat(2)-7.94%
Max Revenue beat(2)12.29%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-7.94%
Max Revenue beat(4)12.29%
Revenue beat(8)3
Avg Revenue beat(8)-1.23%
Revenue beat(12)6
Avg Revenue beat(12)0.85%
Revenue beat(16)8
Avg Revenue beat(16)0.35%
PT rev (1m)0%
PT rev (3m)-17.12%
EPS NQ rev (1m)13.86%
EPS NQ rev (3m)-19.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.06%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 14.32 | ||
| P/S | 1.08 | ||
| P/FCF | 12.82 | ||
| P/OCF | 12.17 | ||
| P/B | 0.88 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)3.31
EY8.13%
EPS(NY)2.84
Fwd EY6.98%
FCF(TTM)3.18
FCFY7.8%
OCF(TTM)3.35
OCFY8.22%
SpS37.83
BVpS46.07
TBVpS43.95
PEG (NY)N/A
PEG (5Y)3.95
Graham Number58.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 9.33% | ||
| ROCE | 3.59% | ||
| ROIC | 2.88% | ||
| ROICexc | 2.94% | ||
| ROICexgc | 3.48% | ||
| OM | 13.97% | ||
| PM (TTM) | 11.37% | ||
| GM | N/A | ||
| FCFM | 8.4% |
ROA(3y)2.66%
ROA(5y)2.84%
ROE(3y)9.29%
ROE(5y)9.52%
ROIC(3y)2.84%
ROIC(5y)2.96%
ROICexc(3y)2.97%
ROICexc(5y)3.08%
ROICexgc(3y)3.58%
ROICexgc(5y)3.74%
ROCE(3y)3.54%
ROCE(5y)3.7%
ROICexgc growth 3Y1.31%
ROICexgc growth 5Y-4.1%
ROICexc growth 3Y2.18%
ROICexc growth 5Y-3.47%
OM growth 3Y-7.38%
OM growth 5Y-6.44%
PM growth 3Y-7.41%
PM growth 5Y-6.45%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 28.17% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.82% | ||
| Profit Quality | 73.89% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.73%
ROIC/WACC0.33
Cap/Depr(3y)17.19%
Cap/Depr(5y)20.04%
Cap/Sales(3y)0.39%
Cap/Sales(5y)0.49%
Profit Quality(3y)100.36%
Profit Quality(5y)66.06%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.03%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-56.36%
EPS Next Y-29.15%
EPS Next 2Y-12.67%
EPS Next 3Y-6.69%
EPS Next 5YN/A
Revenue 1Y (TTM)2.32%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%13.5%
Revenue Next Year-0.34%
Revenue Next 2Y-0.33%
Revenue Next 3Y0%
Revenue Next 5YN/A
EBIT growth 1Y-18.44%
EBIT growth 3Y-0.16%
EBIT growth 5Y-5.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.75%
FCF growth 3Y114.94%
FCF growth 5Y-8.42%
OCF growth 1Y34.76%
OCF growth 3Y91.97%
OCF growth 5Y-9.1%
EMPLOYERS HOLDINGS INC / EIG FAQ
Can you provide the ChartMill fundamental rating for EMPLOYERS HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to EIG.
What is the valuation status of EMPLOYERS HOLDINGS INC (EIG) stock?
ChartMill assigns a valuation rating of 3 / 10 to EMPLOYERS HOLDINGS INC (EIG). This can be considered as Overvalued.
What is the profitability of EIG stock?
EMPLOYERS HOLDINGS INC (EIG) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for EIG stock?
The Price/Earnings (PE) ratio for EMPLOYERS HOLDINGS INC (EIG) is 12.31 and the Price/Book (PB) ratio is 0.88.
Can you provide the expected EPS growth for EIG stock?
The Earnings per Share (EPS) of EMPLOYERS HOLDINGS INC (EIG) is expected to decline by -29.15% in the next year.