EMPLOYERS HOLDINGS INC (EIG) Fundamental Analysis & Valuation

NYSE:EIG • US2922181043

Current stock price

40.39 USD
+0.33 (+0.82%)
Last:

This EIG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. EIG Profitability Analysis

1.1 Basic Checks

  • EIG had positive earnings in the past year.
  • EIG had a positive operating cash flow in the past year.
  • Each year in the past 5 years EIG has been profitable.
  • In the past 5 years EIG always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M

1.2 Ratios

  • EIG has a Return On Assets of 0.31%. This is in the lower half of the industry: EIG underperforms 75.68% of its industry peers.
  • Looking at the Return On Equity, with a value of 1.13%, EIG is doing worse than 82.43% of the companies in the same industry.
  • With a Return On Invested Capital value of 0.35%, EIG is not doing good in the industry: 72.97% of the companies in the same industry are doing better.
  • EIG had an Average Return On Invested Capital over the past 3 years of 2.68%. This is significantly below the industry average of 9.34%.
Industry RankSector Rank
ROA 0.31%
ROE 1.13%
ROIC 0.35%
ROA(3y)2.33%
ROA(5y)2.29%
ROE(3y)7.96%
ROE(5y)7.77%
ROIC(3y)2.68%
ROIC(5y)2.57%
EIG Yearly ROA, ROE, ROICEIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • The Profit Margin of EIG (1.26%) is worse than 82.43% of its industry peers.
  • EIG's Profit Margin has declined in the last couple of years.
  • With a Operating Margin value of 1.60%, EIG is not doing good in the industry: 85.14% of the companies in the same industry are doing better.
  • EIG's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 1.6%
PM (TTM) 1.26%
GM N/A
OM growth 3Y-42.45%
OM growth 5Y-40.26%
PM growth 3Y-42.98%
PM growth 5Y-40.48%
GM growth 3YN/A
GM growth 5YN/A
EIG Yearly Profit, Operating, Gross MarginsEIG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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4

2. EIG Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EIG is destroying value.
  • EIG has less shares outstanding than it did 1 year ago.
  • EIG has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for EIG is higher compared to a year ago.
EIG Yearly Shares OutstandingEIG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
EIG Yearly Total Debt VS Total AssetsEIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • The Debt to FCF ratio of EIG is 0.82, which is an excellent value as it means it would take EIG, only 0.82 years of fcf income to pay off all of its debts.
  • EIG's Debt to FCF ratio of 0.82 is fine compared to the rest of the industry. EIG outperforms 70.95% of its industry peers.
  • EIG has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
  • EIG's Debt to Equity ratio of 0.04 is amongst the best of the industry. EIG outperforms 85.14% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.82
Altman-Z N/A
ROIC/WACC0.04
WACC8.88%
EIG Yearly LT Debt VS Equity VS FCFEIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. EIG Growth Analysis

3.1 Past

  • The earnings per share for EIG have decreased strongly by -75.60% in the last year.
  • Measured over the past years, EIG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.94% on average per year.
  • The Revenue has decreased by -2.50% in the past year.
  • The Revenue has been growing slightly by 3.84% on average over the past years.
EPS 1Y (TTM)-75.6%
EPS 3Y-32.28%
EPS 5Y-21.94%
EPS Q2Q%-42.61%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y6.37%
Revenue growth 5Y3.84%
Sales Q2Q%-21.28%

3.2 Future

  • The Earnings Per Share is expected to grow by 69.92% on average over the next years. This is a very strong growth
  • The Revenue is expected to decrease by -2.78% on average over the next years.
EPS Next Y138.63%
EPS Next 2Y69.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.12%
Revenue Next 2Y-2.78%
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 accelerating.
  • 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.
EIG Yearly Revenue VS EstimatesEIG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
EIG Yearly EPS VS EstimatesEIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

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2

4. EIG Valuation Analysis

4.1 Price/Earnings Ratio

  • EIG is valuated quite expensively with a Price/Earnings ratio of 44.38.
  • EIG's Price/Earnings ratio is rather expensive when compared to the industry. EIG is more expensive than 81.76% of the companies in the same industry.
  • EIG is valuated expensively when we compare the Price/Earnings ratio to 25.54, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 18.60, which indicates a rather expensive current valuation of EIG.
  • 72.97% of the companies in the same industry are cheaper than EIG, based on the Price/Forward Earnings ratio.
  • EIG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
Industry RankSector Rank
PE 44.38
Fwd PE 18.6
EIG Price Earnings VS Forward Price EarningsEIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, EIG is valued a bit more expensive than 70.95% of the companies in the same industry.
  • 67.57% of the companies in the same industry are cheaper than EIG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.51
EV/EBITDA 25.69
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • EIG's earnings are expected to grow with 69.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y69.92%
EPS Next 3YN/A

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5

5. EIG Dividend Analysis

5.1 Amount

  • EIG has a Yearly Dividend Yield of 3.29%.
  • EIG's Dividend Yield is a higher than the industry average which is at 2.84.
  • Compared to an average S&P500 Dividend Yield of 1.89, EIG pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.29%

5.2 History

  • The dividend of EIG has a limited annual growth rate of 5.34%.
  • 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)5.34%
Div Incr Years1
Div Non Decr Years1
EIG Yearly Dividends per shareEIG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • EIG pays out 276.85% of its income as dividend. This is not a sustainable payout ratio.
  • EIG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP276.85%
EPS Next 2Y69.92%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
EIG Dividend Payout.EIG Dividend Payout, showing the Payout Ratio.EIG Dividend Payout.PayoutRetained Earnings

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EIG Fundamentals: All Metrics, Ratios and Statistics

EMPLOYERS HOLDINGS INC

NYSE:EIG (3/24/2026, 10:19:29 AM)

40.39

+0.33 (+0.82%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-19
Earnings (Next)04-29
Inst Owners88.12%
Inst Owner Change-11.65%
Ins Owners1.34%
Ins Owner Change4.08%
Market Cap786.80M
Revenue(TTM)858.70M
Net Income(TTM)10.80M
Analysts74.29
Price Target45.39 (12.38%)
Short Float %5.24%
Short Ratio3.45
Dividend
Industry RankSector Rank
Dividend Yield 3.29%
Yearly Dividend1.33
Dividend Growth(5Y)5.34%
DP276.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-04
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-125.89%
Min EPS beat(2)-282.74%
Max EPS beat(2)30.96%
EPS beat(4)2
Avg EPS beat(4)-71.98%
Min EPS beat(4)-282.74%
Max EPS beat(4)30.96%
EPS beat(8)5
Avg EPS beat(8)-35.74%
EPS beat(12)8
Avg EPS beat(12)-19.75%
EPS beat(16)11
Avg EPS beat(16)-11.48%
Revenue beat(2)1
Avg Revenue beat(2)-6.32%
Min Revenue beat(2)-22.02%
Max Revenue beat(2)9.39%
Revenue beat(4)2
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-22.02%
Max Revenue beat(4)12.29%
Revenue beat(8)3
Avg Revenue beat(8)-2.51%
Revenue beat(12)5
Avg Revenue beat(12)-1.88%
Revenue beat(16)7
Avg Revenue beat(16)-2.12%
PT rev (1m)-9.18%
PT rev (3m)0%
EPS NQ rev (1m)7.42%
EPS NQ rev (3m)7.42%
EPS NY rev (1m)2.26%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)-2.5%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-4.22%
Revenue NY rev (3m)-4.22%
Valuation
Industry RankSector Rank
PE 44.38
Fwd PE 18.6
P/S 0.92
P/FCF 18.51
P/OCF 17.6
P/B 0.82
P/tB 0.87
EV/EBITDA 25.69
EPS(TTM)0.91
EY2.25%
EPS(NY)2.17
Fwd EY5.38%
FCF(TTM)2.18
FCFY5.4%
OCF(TTM)2.29
OCFY5.68%
SpS44.08
BVpS49.06
TBVpS46.5
PEG (NY)0.32
PEG (5Y)N/A
Graham Number31.69
Profitability
Industry RankSector Rank
ROA 0.31%
ROE 1.13%
ROCE 0.41%
ROIC 0.35%
ROICexc 0.37%
ROICexgc 0.44%
OM 1.6%
PM (TTM) 1.26%
GM N/A
FCFM 4.95%
ROA(3y)2.33%
ROA(5y)2.29%
ROE(3y)7.96%
ROE(5y)7.77%
ROIC(3y)2.68%
ROIC(5y)2.57%
ROICexc(3y)2.8%
ROICexc(5y)2.66%
ROICexgc(3y)3.37%
ROICexgc(5y)3.22%
ROCE(3y)3.13%
ROCE(5y)3.01%
ROICexgc growth 3Y-37.13%
ROICexgc growth 5Y-36.65%
ROICexc growth 3Y-36.7%
ROICexc growth 5Y-36.18%
OM growth 3Y-42.45%
OM growth 5Y-40.26%
PM growth 3Y-42.98%
PM growth 5Y-40.48%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.82
Debt/EBITDA 1.41
Cap/Depr 19.64%
Cap/Sales 0.26%
Interest Coverage 27.4
Cash Conversion 179.52%
Profit Quality 393.52%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC8.88%
ROIC/WACC0.04
Cap/Depr(3y)19.74%
Cap/Depr(5y)17.57%
Cap/Sales(3y)0.36%
Cap/Sales(5y)0.39%
Profit Quality(3y)164.59%
Profit Quality(5y)140.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-75.6%
EPS 3Y-32.28%
EPS 5Y-21.94%
EPS Q2Q%-42.61%
EPS Next Y138.63%
EPS Next 2Y69.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y6.37%
Revenue growth 5Y3.84%
Sales Q2Q%-21.28%
Revenue Next Year-7.12%
Revenue Next 2Y-2.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-90.65%
EBIT growth 3Y-38.79%
EBIT growth 5Y-37.97%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-40.56%
FCF growth 3Y-24.1%
FCF growth 5Y8.86%
OCF growth 1Y-41.49%
OCF growth 3Y-23.49%
OCF growth 5Y6.07%

EMPLOYERS HOLDINGS INC / EIG Fundamental Analysis 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 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 2 / 10.


What is the financial health of EMPLOYERS HOLDINGS INC (EIG) stock?

The financial health rating of EMPLOYERS HOLDINGS INC (EIG) is 4 / 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 276.85%.