EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIG - US2922181043 - Common Stock
39.44 USD
+0.69 (+1.78%)
39.44 USD
0 (0%)
EIG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. The financial health of EIG is average, but there are quite some concerns on its profitability. EIG is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year EIG was profitable.
EIG had a positive operating cash flow in the past year.
EIG had positive earnings in each of the past 5 years.
EIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.77%, EIG perfoms like the industry average, outperforming 46.26% of the companies in the same industry.
EIG has a worse Return On Equity (6.01%) than 74.15% of its industry peers.
EIG's Return On Invested Capital of 1.81% is in line compared to the rest of the industry. EIG outperforms 46.94% 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 4.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 6.01% | ||
| ROIC | 1.81% |
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 Profit Margin value of 6.91%, EIG perfoms like the industry average, outperforming 44.22% of the companies in the same industry.
EIG's Profit Margin has declined in the last couple of years.
EIG has a worse Operating Margin (8.59%) than 63.95% of its industry peers.
EIG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.59% | ||
| PM (TTM) | 6.91% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EIG is destroying value.
The number of shares outstanding for EIG has been reduced compared to 1 year ago.
Compared to 5 years ago, EIG has less shares outstanding
EIG has a better debt/assets ratio than last year.
2.2 Solvency
EIG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.21
WACC8.75%
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 -64.82%.
The Earnings Per Share has been growing slightly by 3.11% on average over the past years.
EIG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.69%.
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)-64.82%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-235.8%
Revenue 1Y (TTM)1.69%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%12.29%
3.2 Future
The Earnings Per Share is expected to decrease by -6.69% on average over the next years.
EIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.00% yearly.
EPS Next Y-29.59%
EPS Next 2Y-16.9%
EPS Next 3Y-6.69%
EPS Next 5YN/A
Revenue Next Year1.08%
Revenue Next 2Y-0.59%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.17, EIG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EIG is valued a bit more expensive than the industry average as 79.59% of the companies are valued more cheaply.
EIG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
A Price/Forward Earnings ratio of 15.31 indicates a correct valuation of EIG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EIG indicates a slightly more expensive valuation: EIG is more expensive than 63.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. EIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.17 | ||
| Fwd PE | 15.31 |
4.2 Price Multiples
EIG's Enterprise Value to EBITDA is on the same level as the industry average.
EIG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.36 | ||
| EV/EBITDA | 8.12 |
4.3 Compensation for Growth
EIG's earnings are expected to decrease with -6.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)9.05
EPS Next 2Y-16.9%
EPS Next 3Y-6.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.26%, EIG has a reasonable but not impressive dividend return.
EIG's Dividend Yield is a higher than the industry average which is at 3.51.
EIG's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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.
EIG has decreased its dividend recently.
Dividend Growth(5Y)6.16%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
EIG pays out 48.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP48.48%
EPS Next 2Y-16.9%
EPS Next 3Y-6.69%
39.44
+0.69 (+1.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.75%
Inst Owner Change-4.28%
Ins Owners0.96%
Ins Owner Change5.16%
Market Cap927.23M
Revenue(TTM)904.80M
Net Income(TTM)62.50M
Analysts74.29
Price Target46.92 (18.97%)
Short Float %2%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend1.21
Dividend Growth(5Y)6.16%
DP48.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-167.29%
Min EPS beat(2)-282.74%
Max EPS beat(2)-51.85%
EPS beat(4)2
Avg EPS beat(4)-78.49%
Min EPS beat(4)-282.74%
Max EPS beat(4)15.7%
EPS beat(8)5
Avg EPS beat(8)-36.01%
EPS beat(12)8
Avg EPS beat(12)-18.34%
EPS beat(16)11
Avg EPS beat(16)-9.57%
Revenue beat(2)2
Avg Revenue beat(2)10.84%
Min Revenue beat(2)9.39%
Max Revenue beat(2)12.29%
Revenue beat(4)2
Avg Revenue beat(4)2.67%
Min Revenue beat(4)-7.94%
Max Revenue beat(4)12.29%
Revenue beat(8)4
Avg Revenue beat(8)0.71%
Revenue beat(12)6
Avg Revenue beat(12)0.91%
Revenue beat(16)8
Avg Revenue beat(16)0.59%
PT rev (1m)0%
PT rev (3m)-9.8%
EPS NQ rev (1m)-18.94%
EPS NQ rev (3m)-20.74%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-27.52%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)1.74%
Revenue NY rev (3m)4.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.17 | ||
| Fwd PE | 15.31 | ||
| P/S | 1.02 | ||
| P/FCF | 17.36 | ||
| P/OCF | 16.24 | ||
| P/B | 0.89 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 8.12 |
EPS(TTM)1.4
EY3.55%
EPS(NY)2.58
Fwd EY6.53%
FCF(TTM)2.27
FCFY5.76%
OCF(TTM)2.43
OCFY6.16%
SpS38.49
BVpS44.2
TBVpS42.08
PEG (NY)N/A
PEG (5Y)9.05
Graham Number37.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 6.01% | ||
| ROCE | 2.26% | ||
| ROIC | 1.81% | ||
| ROICexc | 1.9% | ||
| ROICexgc | 2.26% | ||
| OM | 8.59% | ||
| PM (TTM) | 6.91% | ||
| GM | N/A | ||
| FCFM | 5.9% |
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-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 26.43% | ||
| Cap/Sales | 0.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.27% | ||
| Profit Quality | 85.44% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.75%
ROIC/WACC0.21
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)-64.82%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-235.8%
EPS Next Y-29.59%
EPS Next 2Y-16.9%
EPS Next 3Y-6.69%
EPS Next 5YN/A
Revenue 1Y (TTM)1.69%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%12.29%
Revenue Next Year1.08%
Revenue Next 2Y-0.59%
Revenue Next 3Y0%
Revenue Next 5YN/A
EBIT growth 1Y-54.48%
EBIT growth 3Y-0.16%
EBIT growth 5Y-5.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2.3%
FCF growth 3Y114.94%
FCF growth 5Y-8.42%
OCF growth 1Y5.55%
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 3 / 10 to EIG.
What is the valuation status of EMPLOYERS HOLDINGS INC (EIG) stock?
ChartMill assigns a valuation rating of 2 / 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 3 / 10.
Can you provide the PE and PB ratios for EIG stock?
The Price/Earnings (PE) ratio for EMPLOYERS HOLDINGS INC (EIG) is 28.17 and the Price/Book (PB) ratio is 0.89.
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 -29.59% in the next year.