EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
NYSE:EIG - New York Stock Exchange, Inc. - US2922181043 - Common Stock - Currency: USD
Overall EIG gets a fundamental rating of 4 out of 10. We evaluated EIG against 144 industry peers in the Insurance industry. EIG has only an average score on both its financial health and profitability. EIG has a valuation in line with the averages, but on the other hand it 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.
In the past 5 years EIG has always been profitable.
Of the past 5 years EIG 4 years had a positive operating cash flow.
1.2 Ratios
EIG has a Return On Assets of 3.76%. This is in the better half of the industry: EIG outperforms 70.42% of its industry peers.
With a Return On Equity value of 12.43%, EIG perfoms like the industry average, outperforming 54.93% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.88%, EIG is in the better half of the industry, outperforming 72.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 12.43% | ||
| ROIC | 3.88% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of EIG (15.27%) is better than 78.17% of its industry peers.
In the last couple of years the Profit Margin of EIG has declined.
EIG has a Operating Margin of 19.18%. This is in the better half of the industry: EIG outperforms 76.76% of its industry peers.
EIG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.18% | ||
| PM (TTM) | 15.27% | ||
| 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.
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.
2.2 Solvency
The Debt to FCF ratio of EIG is 0.00, which is an excellent value as it means it would take EIG, only 0.00 years of fcf income to pay off all of its debts.
EIG has a Debt to FCF ratio of 0.00. This is amongst the best in the industry. EIG outperforms 95.77% of its industry peers.
EIG has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, EIG belongs to the top of the industry, outperforming 90.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.45
WACC8.69%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
EIG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.12%.
The Earnings Per Share has been growing slightly by 3.11% on average over the past years.
The Revenue has been growing slightly by 3.50% in the past year.
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)-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
Based on estimates for the next years, EIG will show a decrease in Earnings Per Share. The EPS will decrease by -3.70% on average per year.
Based on estimates for the next years, EIG will show a small growth in Revenue. The Revenue will grow by 1.97% on average per year.
EPS Next Y0.56%
EPS Next 2Y-3.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.18%
Revenue Next 2Y1.97%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EIG is valuated correctly with a Price/Earnings ratio of 13.96.
EIG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.98, EIG is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.88, EIG is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EIG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of EIG to the average of the S&P500 Index (22.66), we can say EIG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 13.88 |
4.2 Price Multiples
75.35% of the companies in the same industry are more expensive than EIG, based on the Enterprise Value to EBITDA ratio.
EIG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.8 | ||
| EV/EBITDA | 6.02 |
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.
EIG's earnings are expected to decrease with -3.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)24.93
PEG (5Y)4.49
EPS Next 2Y-3.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EIG has a Yearly Dividend Yield of 2.35%.
Compared to an average industry Dividend Yield of 3.06, EIG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, EIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
The dividend of EIG is nicely growing with an annual growth rate of 6.73%!
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)6.73%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
22.08% of the earnings are spent on dividend by EIG. This is a low number and sustainable payout ratio.
DP22.08%
EPS Next 2Y-3.7%
EPS Next 3YN/A
52.08
+0.28 (+0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners83.32%
Inst Owner Change1.5%
Ins Owners1.12%
Ins Owner Change3.37%
Market Cap1.29B
Analysts72.5
Price Target58.14 (11.64%)
Short Float %1.98%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend1.13
Dividend Growth(5Y)6.73%
DP22.08%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.54%
Min EPS beat(2)0.4%
Max EPS beat(2)2.69%
EPS beat(4)3
Avg EPS beat(4)6.46%
Min EPS beat(4)-6.04%
Max EPS beat(4)28.79%
EPS beat(8)6
Avg EPS beat(8)11.74%
EPS beat(12)9
Avg EPS beat(12)13.4%
EPS beat(16)11
Avg EPS beat(16)22.59%
Revenue beat(2)0
Avg Revenue beat(2)-5.16%
Min Revenue beat(2)-6.3%
Max Revenue beat(2)-4.01%
Revenue beat(4)2
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-6.3%
Max Revenue beat(4)3.75%
Revenue beat(8)4
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)-0.11%
Revenue beat(16)10
Avg Revenue beat(16)1.83%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 13.88 | ||
| P/S | 1.45 | ||
| P/FCF | 14.8 | ||
| P/OCF | 14.16 | ||
| P/B | 1.18 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 6.02 |
EPS(TTM)3.73
EY7.16%
EPS(NY)3.75
Fwd EY7.2%
FCF(TTM)3.52
FCFY6.76%
OCF(TTM)3.68
OCFY7.06%
SpS36
BVpS44.23
TBVpS42.22
PEG (NY)24.93
PEG (5Y)4.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 12.43% | ||
| ROCE | 4.84% | ||
| ROIC | 3.88% | ||
| ROICexc | 4.05% | ||
| ROICexgc | 4.82% | ||
| OM | 19.18% | ||
| PM (TTM) | 15.27% | ||
| GM | N/A | ||
| FCFM | 9.78% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score8
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 21.31% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.1% | ||
| Profit Quality | 64.02% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.69%
ROIC/WACC0.45
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.12%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-17.86%
EPS Next Y0.56%
EPS Next 2Y-3.7%
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 Year1.18%
Revenue Next 2Y1.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.98%
EBIT growth 3Y-0.16%
EBIT growth 5Y-5.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y66.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y68.02%
OCF growth 3YN/A
OCF growth 5YN/A