EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIG - US2922181043 - Common Stock
45.6 USD
-0.19 (-0.41%)
45.6 USD
0 (0%)
EIG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 149 industry peers in the Insurance industry. While EIG seems to be doing ok healthwise, there are quite some concerns on its profitability. EIG does not seem to be growing, but still is valued expensively.
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.
- EIG had positive earnings in each of the past 5 years.
- In the past 5 years EIG always reported a positive cash flow from operatings.
1.2 Ratios
- EIG has a Return On Assets (1.77%) which is comparable to the rest of the industry.
- EIG has a Return On Equity of 6.01%. This is in the lower half of the industry: EIG underperforms 72.48% of its industry peers.
- With a Return On Invested Capital value of 1.81%, EIG perfoms like the industry average, outperforming 45.64% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for EIG is significantly below the industry average of 14.92%.
| 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's Profit Margin of 6.91% is in line compared to the rest of the industry. EIG outperforms 43.62% of its industry peers.
- In the last couple of years the Profit Margin of EIG has declined.
- EIG has a Operating Margin of 8.59%. This is in the lower half of the industry: EIG underperforms 65.10% 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.
- 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
- 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/WACC0.2
WACC8.89%
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%.
- 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.
- Based on estimates for the next years, EIG will show a small growth in Revenue. The Revenue will grow by 0.00% on average per year.
EPS Next Y-78.79%
EPS Next 2Y-24.3%
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 32.57, the valuation of EIG can be described as expensive.
- Based on the Price/Earnings ratio, EIG is valued a bit more expensive than the industry average as 76.51% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, EIG is valued at the same level.
- Based on the Price/Forward Earnings ratio of 21.33, the valuation of EIG can be described as rather expensive.
- 73.15% of the companies in the same industry are cheaper than EIG, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, EIG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.57 | ||
| Fwd PE | 21.33 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EIG is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, EIG is valued a bit more expensive than 61.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.2 | ||
| EV/EBITDA | 9.36 |
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)10.46
EPS Next 2Y-24.3%
EPS Next 3Y-14.6%
5. Dividend
5.1 Amount
- EIG has a Yearly Dividend Yield of 2.80%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.53, EIG pays a bit more dividend than its industry peers.
- EIG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
- The dividend of EIG is nicely growing with an annual growth rate of 6.16%!
- EIG has paid a dividend for at least 10 years, which is 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-24.3%
EPS Next 3Y-14.6%
45.6
-0.19 (-0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners86.2%
Inst Owner Change-0.29%
Ins Owners1.05%
Ins Owner Change0.74%
Market Cap1.03B
Revenue(TTM)904.80M
Net Income(TTM)62.50M
Analysts74.29
Price Target45.39 (-0.46%)
Short Float %2.96%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend1.21
Dividend Growth(5Y)6.16%
DP48.48%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-3.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-70.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.57 | ||
| Fwd PE | 21.33 | ||
| P/S | 1.13 | ||
| P/FCF | 19.2 | ||
| P/OCF | 17.95 | ||
| P/B | 0.99 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 9.36 |
EPS(TTM)1.4
EY3.07%
EPS(NY)2.14
Fwd EY4.69%
FCF(TTM)2.38
FCFY5.21%
OCF(TTM)2.54
OCFY5.57%
SpS40.25
BVpS46.23
TBVpS44.01
PEG (NY)N/A
PEG (5Y)10.46
Graham Number38.16
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
WACC8.89%
ROIC/WACC0.2
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-78.79%
EPS Next 2Y-24.3%
EPS Next 3Y-14.6%
EPS Next 5YN/A
Revenue 1Y (TTM)1.69%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%12.29%
Revenue Next Year2.19%
Revenue Next 2Y-0.45%
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.
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%.