EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
USA - NYSE:EIG - US2922181043 - Common Stock
42.79 USD
+0.55 (+1.3%)
42.79 USD
0 (0%)
EIG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. Both the profitability and the financial health of EIG get a neutral evaluation. Nothing too spectacular is happening here. EIG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EIG was profitable.
EIG had a positive operating cash flow in the past year.
In the past 5 years EIG has always been profitable.
In the past 5 years EIG always reported a positive cash flow from operatings.
1.2 Ratios
EIG has a Return On Assets of 2.85%. This is in the better half of the industry: EIG outperforms 65.75% of its industry peers.
EIG has a Return On Equity (9.33%) which is comparable to the rest of the industry.
EIG has a Return On Invested Capital of 2.88%. This is in the better half of the industry: EIG outperforms 62.33% of its industry peers.
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(2.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 9.33% | ||
| ROIC | 2.88% |
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
Looking at the Profit Margin, with a value of 11.37%, EIG is in the better half of the industry, outperforming 69.18% of the companies in the same industry.
EIG's Profit Margin has declined in the last couple of years.
EIG's Operating Margin of 13.97% is in line compared to the rest of the industry. EIG outperforms 59.59% of its industry peers.
In the last couple of years the Operating Margin of EIG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.97% | ||
| PM (TTM) | 11.37% | ||
| 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.
Compared to 1 year ago, EIG has less shares outstanding
EIG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EIG has an improved debt to assets ratio.
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/WACC0.33
WACC8.71%
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 -14.03%.
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 2.32% in the last 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)-14.03%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-56.36%
Revenue 1Y (TTM)2.32%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%13.5%
3.2 Future
The Earnings Per Share is expected to decrease by -17.15% on average over the next years. This is quite bad
Based on estimates for the next years, EIG will show a small growth in Revenue. The Revenue will grow by 0.07% on average per year.
EPS Next Y-32.31%
EPS Next 2Y-14.76%
EPS Next 3Y-17.15%
EPS Next 5YN/A
Revenue Next Year-0.65%
Revenue Next 2Y0.07%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.93, EIG is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as EIG.
EIG is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.79, which indicates a correct valuation of EIG.
Based on the Price/Forward Earnings ratio, EIG is valued a bit more expensive than 63.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EIG to the average of the S&P500 Index (22.88), we can say EIG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 15.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIG is valued a bit cheaper than 67.81% of the companies in the same industry.
EIG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.47 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
EIG's earnings are expected to decrease with -17.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.15
EPS Next 2Y-14.76%
EPS Next 3Y-17.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.02%, EIG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.43, EIG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, EIG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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 29.97% of its income as dividend. This is a sustainable payout ratio.
DP29.97%
EPS Next 2Y-14.76%
EPS Next 3Y-17.15%
42.79
+0.55 (+1.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.71%
Inst Owner Change-7.43%
Ins Owners0.92%
Ins Owner Change0.81%
Market Cap1.01B
Analysts72.5
Price Target46.92 (9.65%)
Short Float %1.82%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend1.21
Dividend Growth(5Y)6.16%
DP29.97%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.07%
Min EPS beat(2)-51.85%
Max EPS beat(2)15.7%
EPS beat(4)3
Avg EPS beat(4)-7.13%
Min EPS beat(4)-51.85%
Max EPS beat(4)15.7%
EPS beat(8)5
Avg EPS beat(8)-1%
EPS beat(12)9
Avg EPS beat(12)7.39%
EPS beat(16)11
Avg EPS beat(16)6.44%
Revenue beat(2)1
Avg Revenue beat(2)2.17%
Min Revenue beat(2)-7.94%
Max Revenue beat(2)12.29%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-7.94%
Max Revenue beat(4)12.29%
Revenue beat(8)3
Avg Revenue beat(8)-1.23%
Revenue beat(12)6
Avg Revenue beat(12)0.85%
Revenue beat(16)8
Avg Revenue beat(16)0.35%
PT rev (1m)-9.8%
PT rev (3m)-17.12%
EPS NQ rev (1m)2.06%
EPS NQ rev (3m)-29.09%
EPS NY rev (1m)-30.31%
EPS NY rev (3m)-31.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)2.77%
Revenue NY rev (3m)3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 15.79 | ||
| P/S | 1.13 | ||
| P/FCF | 13.47 | ||
| P/OCF | 12.78 | ||
| P/B | 0.93 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)3.31
EY7.74%
EPS(NY)2.71
Fwd EY6.33%
FCF(TTM)3.18
FCFY7.43%
OCF(TTM)3.35
OCFY7.82%
SpS37.83
BVpS46.07
TBVpS43.95
PEG (NY)N/A
PEG (5Y)4.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 9.33% | ||
| ROCE | 3.59% | ||
| ROIC | 2.88% | ||
| ROICexc | 2.94% | ||
| ROICexgc | 3.48% | ||
| OM | 13.97% | ||
| PM (TTM) | 11.37% | ||
| GM | N/A | ||
| FCFM | 8.4% |
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-Score6
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 28.17% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.82% | ||
| Profit Quality | 73.89% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.71%
ROIC/WACC0.33
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)-14.03%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-56.36%
EPS Next Y-32.31%
EPS Next 2Y-14.76%
EPS Next 3Y-17.15%
EPS Next 5YN/A
Revenue 1Y (TTM)2.32%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%13.5%
Revenue Next Year-0.65%
Revenue Next 2Y0.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.44%
EBIT growth 3Y-0.16%
EBIT growth 5Y-5.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.75%
FCF growth 3Y114.94%
FCF growth 5Y-8.42%
OCF growth 1Y34.76%
OCF growth 3Y91.97%
OCF growth 5Y-9.1%