EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIG - US2922181043 - Common Stock
42.94 USD
-0.15 (-0.35%)
42.94 USD
0 (0%)
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. The financial health of EIG is average, but there are quite some concerns on its profitability. 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.
EIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EIG has a Return On Assets (1.77%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 6.01%, EIG is doing worse than 72.97% of the companies in the same industry.
With a Return On Invested Capital value of 1.81%, EIG perfoms like the industry average, outperforming 45.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EIG is significantly below the industry average of 14.88%.
| 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.
The Operating Margin of EIG (8.59%) is worse than 65.54% 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.
The debt/assets ratio for EIG has been reduced compared to a year ago.
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/WACC0.21
WACC8.81%
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%.
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 1.69% in the last year.
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
With a Price/Earnings ratio of 30.67, EIG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EIG is valued a bit more expensive than the industry average as 76.35% of the companies are valued more cheaply.
EIG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.39.
EIG is valuated rather expensively with a Price/Forward Earnings ratio of 20.09.
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 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 20.09 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EIG indicates a slightly more expensive valuation: EIG is more expensive than 60.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.08 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
A cheap valuation may be justified as EIG's earnings are expected to decrease with -14.60% in the coming years.
PEG (NY)N/A
PEG (5Y)9.85
EPS Next 2Y-24.3%
EPS Next 3Y-14.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.97%, EIG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.30, 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
On average, the dividend of EIG grows each year by 6.16%, which is quite nice.
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
48.48% of the earnings are spent on dividend by EIG. This is a bit on the high side, but may be sustainable.
DP48.48%
EPS Next 2Y-24.3%
EPS Next 3Y-14.6%
42.94
-0.15 (-0.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.85%
Inst Owner Change-4.51%
Ins Owners1.03%
Ins Owner Change0.74%
Market Cap965.29M
Revenue(TTM)904.80M
Net Income(TTM)62.50M
Analysts74.29
Price Target45.39 (5.71%)
Short Float %2.8%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend1.21
Dividend Growth(5Y)6.16%
DP48.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-3.26%
PT rev (3m)-3.26%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-20.2%
EPS NY rev (1m)-69.88%
EPS NY rev (3m)-68.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)1.1%
Revenue NY rev (3m)2.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 20.09 | ||
| P/S | 1.07 | ||
| P/FCF | 18.08 | ||
| P/OCF | 16.91 | ||
| P/B | 0.93 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 8.71 |
EPS(TTM)1.4
EY3.26%
EPS(NY)2.14
Fwd EY4.98%
FCF(TTM)2.38
FCFY5.53%
OCF(TTM)2.54
OCFY5.92%
SpS40.25
BVpS46.23
TBVpS44.01
PEG (NY)N/A
PEG (5Y)9.85
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
WACC8.81%
ROIC/WACC0.21
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.
What is the valuation status of EMPLOYERS HOLDINGS INC (EIG) stock?
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.
Can you provide the PE and PB ratios for EIG stock?
The Price/Earnings (PE) ratio for EMPLOYERS HOLDINGS INC (EIG) is 30.67 and the Price/Book (PB) ratio is 0.93.
Can you provide the expected EPS growth for EIG stock?
The Earnings per Share (EPS) of EMPLOYERS HOLDINGS INC (EIG) is expected to decline by -78.79% in the next year.