EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIG - US2922181043 - Common Stock
43.55 USD
-0.53 (-1.2%)
Taking everything into account, EIG scores 3 out of 10 in our fundamental rating. EIG was compared to 148 industry peers in the Insurance industry. While EIG seems to be doing ok healthwise, 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.
- 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
- EIG's Return On Assets of 1.77% is in line compared to the rest of the industry. EIG outperforms 48.65% of its industry peers.
- Looking at the Return On Equity, with a value of 6.01%, EIG is doing worse than 72.30% of the companies in the same industry.
- EIG's Return On Invested Capital of 1.81% is in line compared to the rest of the industry. EIG outperforms 45.95% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EIG is significantly below the industry average of 14.94%.
| 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
- EIG has a Profit Margin (6.91%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of EIG has declined.
- EIG has a worse Operating Margin (8.59%) than 64.86% of its industry peers.
- In the last couple of years the Operating Margin of EIG has declined.
| 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.
- 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.
- EIG has a better debt/assets ratio than last year.
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/WACC0.2
WACC8.89%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The earnings per share for EIG have decreased strongly by -64.82% 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.
- EIG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.69%.
- EIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.05% yearly.
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
- Based on estimates for the next years, EIG will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.60% on average per year.
- 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-79.44%
EPS Next 2Y-24.26%
EPS Next 3Y-14.6%
EPS Next 5YN/A
Revenue Next Year2.19%
Revenue Next 2Y-0.45%
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 31.11, the valuation of EIG can be described as expensive.
- EIG's Price/Earnings ratio is a bit more expensive when compared to the industry. EIG is more expensive than 76.35% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. EIG is around the same levels.
- The Price/Forward Earnings ratio is 20.36, which indicates a rather expensive current 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 72.97% of the companies listed in the same industry.
- EIG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.11 | ||
| Fwd PE | 20.36 |
4.2 Price Multiples
- EIG's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, EIG is valued a bit more expensive than 60.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.33 | ||
| EV/EBITDA | 8.99 |
4.3 Compensation for Growth
- EIG's earnings are expected to decrease with -14.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)9.99
EPS Next 2Y-24.26%
EPS Next 3Y-14.6%
5. Dividend
5.1 Amount
- EIG has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.41, EIG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, EIG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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.
- The dividend of EIG decreased 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-24.26%
EPS Next 3Y-14.6%
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.
Can you provide the valuation status for EMPLOYERS HOLDINGS INC?
ChartMill assigns a valuation rating of 1 / 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.
What is the financial health of EMPLOYERS HOLDINGS INC (EIG) stock?
The financial health rating of EMPLOYERS HOLDINGS INC (EIG) is 5 / 10.
Is the dividend of EMPLOYERS HOLDINGS INC sustainable?
The dividend rating of EMPLOYERS HOLDINGS INC (EIG) is 5 / 10 and the dividend payout ratio is 48.48%.