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EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis

NYSE:EIG - New York Stock Exchange, Inc. - US2922181043 - Common Stock - Currency: USD

48.52  -0.39 (-0.8%)

After market: 48.52 0 (0%)

Fundamental Rating

4

EIG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. EIG has an average financial health and profitability rating. EIG has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

EIG had positive earnings in the past year.
In the past year EIG had a positive cash flow from operations.
EIG had positive earnings in each of the past 5 years.
Each year in the past 5 years EIG had a positive operating cash flow.
EIG Yearly Net Income VS EBIT VS OCF VS FCFEIG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

1.2 Ratios

EIG has a Return On Assets of 3.35%. This is in the better half of the industry: EIG outperforms 73.43% of its industry peers.
The Return On Equity of EIG (11.10%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.41%, EIG is in the better half of the industry, outperforming 67.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EIG is in line with the industry average of 4.47%.
The 3 year average ROIC (2.84%) for EIG is below the current ROIC(3.41%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.35%
ROE 11.1%
ROIC 3.41%
ROA(3y)2.66%
ROA(5y)2.84%
ROE(3y)9.29%
ROE(5y)9.52%
ROIC(3y)2.84%
ROIC(5y)2.96%
EIG Yearly ROA, ROE, ROICEIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

EIG has a Profit Margin of 13.47%. This is in the better half of the industry: EIG outperforms 74.13% of its industry peers.
In the last couple of years the Profit Margin of EIG has declined.
The Operating Margin of EIG (16.65%) is better than 69.93% of its industry peers.
In the last couple of years the Operating Margin of EIG has declined.
Industry RankSector Rank
OM 16.65%
PM (TTM) 13.47%
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
EIG Yearly Profit, Operating, Gross MarginsEIG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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5

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.
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
Compared to 1 year ago, EIG has an improved debt to assets ratio.
EIG Yearly Shares OutstandingEIG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
EIG Yearly Total Debt VS Total AssetsEIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACC0.38
WACC8.97%
EIG Yearly LT Debt VS Equity VS FCFEIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
EIG Yearly Current Assets VS Current LiabilitesEIG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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3

3. Growth

3.1 Past

The earnings per share for EIG have decreased by -3.12% in the last year.
Measured over the past 5 years, EIG shows a small growth in Earnings Per Share. The EPS has been growing by 3.11% on average per year.
Looking at the last year, EIG shows a small growth in Revenue. The Revenue has grown by 3.50% in the last year.
EIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.05% yearly.
EPS 1Y (TTM)-3.12%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-17.86%
Revenue 1Y (TTM)3.5%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%-4.03%

3.2 Future

The Earnings Per Share is expected to decrease by -0.42% on average over the next years.
The Revenue is expected to grow by 1.13% on average over the next years.
EPS Next Y1.19%
EPS Next 2Y-0.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.51%
Revenue Next 2Y1.13%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
EIG Yearly Revenue VS EstimatesEIG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
EIG Yearly EPS VS EstimatesEIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.01 indicates a correct valuation of EIG.
EIG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of EIG to the average of the S&P500 Index (28.79), we can say EIG is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.86, EIG is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as EIG.
When comparing the Price/Forward Earnings ratio of EIG to the average of the S&P500 Index (21.38), we can say EIG is valued slightly cheaper.
Industry RankSector Rank
PE 13.01
Fwd PE 12.86
EIG Price Earnings VS Forward Price EarningsEIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EIG indicates a somewhat cheap valuation: EIG is cheaper than 68.53% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as EIG.
Industry RankSector Rank
P/FCF 16.46
EV/EBITDA 6.85
EIG Per share dataEIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EIG does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)10.94
PEG (5Y)4.18
EPS Next 2Y-0.42%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.48%, 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 comparable with the S&P500 average which is at 2.51.
Industry RankSector Rank
Dividend Yield 2.48%

5.2 History

On average, the dividend of EIG grows each year by 6.16%, which is quite nice.
EIG has been paying a dividend for at least 10 years, so it has a reliable track record.
EIG has decreased its dividend recently.
Dividend Growth(5Y)6.16%
Div Incr Years1
Div Non Decr Years1
EIG Yearly Dividends per shareEIG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

25.55% of the earnings are spent on dividend by EIG. This is a low number and sustainable payout ratio.
DP25.55%
EPS Next 2Y-0.42%
EPS Next 3YN/A
EIG Yearly Income VS Free CF VS DividendEIG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
EIG Dividend Payout.EIG Dividend Payout, showing the Payout Ratio.EIG Dividend Payout.PayoutRetained Earnings

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EMPLOYERS HOLDINGS INC

NYSE:EIG (4/25/2025, 4:15:00 PM)

After market: 48.52 0 (0%)

48.52

-0.39 (-0.8%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-01 2025-05-01/amc
Inst Owners83.32%
Inst Owner Change0.85%
Ins Owners1.12%
Ins Owner Change2.77%
Market Cap1.18B
Analysts72.5
Price Target56.61 (16.67%)
Short Float %1.73%
Short Ratio2.37
Dividend
Industry RankSector Rank
Dividend Yield 2.48%
Yearly Dividend1.21
Dividend Growth(5Y)6.16%
DP25.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-05 2025-03-05 (0.3)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.81%
Min EPS beat(2)2.69%
Max EPS beat(2)4.94%
EPS beat(4)3
Avg EPS beat(4)0.5%
Min EPS beat(4)-6.04%
Max EPS beat(4)4.94%
EPS beat(8)6
Avg EPS beat(8)6.37%
EPS beat(12)9
Avg EPS beat(12)8.69%
EPS beat(16)11
Avg EPS beat(16)7.25%
Revenue beat(2)0
Avg Revenue beat(2)-4.67%
Min Revenue beat(2)-6.3%
Max Revenue beat(2)-3.04%
Revenue beat(4)1
Avg Revenue beat(4)-2.94%
Min Revenue beat(4)-6.3%
Max Revenue beat(4)1.58%
Revenue beat(8)3
Avg Revenue beat(8)-1.78%
Revenue beat(12)5
Avg Revenue beat(12)-2.14%
Revenue beat(16)9
Avg Revenue beat(16)0.66%
PT rev (1m)-2.63%
PT rev (3m)-2.63%
EPS NQ rev (1m)1.11%
EPS NQ rev (3m)3.4%
EPS NY rev (1m)0.63%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-1.67%
Valuation
Industry RankSector Rank
PE 13.01
Fwd PE 12.86
P/S 1.34
P/FCF 16.46
P/OCF 15.41
P/B 1.1
P/tB 1.16
EV/EBITDA 6.85
EPS(TTM)3.73
EY7.69%
EPS(NY)3.77
Fwd EY7.78%
FCF(TTM)2.95
FCFY6.07%
OCF(TTM)3.15
OCFY6.49%
SpS36.3
BVpS44.05
TBVpS42
PEG (NY)10.94
PEG (5Y)4.18
Profitability
Industry RankSector Rank
ROA 3.35%
ROE 11.1%
ROCE 4.25%
ROIC 3.41%
ROICexc 3.48%
ROICexgc 4.14%
OM 16.65%
PM (TTM) 13.47%
GM N/A
FCFM 8.12%
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%
ROICexcg growth 3Y1.31%
ROICexcg 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-Score7
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 29.34%
Cap/Sales 0.56%
Interest Coverage 1466
Cash Conversion 46.79%
Profit Quality 60.29%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC8.97%
ROIC/WACC0.38
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)-3.12%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-17.86%
EPS Next Y1.19%
EPS Next 2Y-0.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.5%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%-4.03%
Revenue Next Year-0.51%
Revenue Next 2Y1.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.34%
EBIT growth 3Y-0.16%
EBIT growth 5Y-5.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y51.48%
FCF growth 3Y114.94%
FCF growth 5Y-8.42%
OCF growth 1Y54.66%
OCF growth 3Y91.97%
OCF growth 5Y-9.1%