EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIG - US2922181043 - Common Stock
39.26 USD
-0.33 (-0.83%)
39.26 USD
0 (0%)
Overall EIG gets a fundamental rating of 3 out of 10. We evaluated EIG against 148 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
EIG had positive earnings in the past year.
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 comparable to the rest of the industry.
With a Return On Equity value of 6.01%, EIG is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
The Return On Invested Capital of EIG (1.81%) is comparable to the rest of the industry.
EIG had an Average Return On Invested Capital over the past 3 years of 2.84%. This is in line with the industry average of 4.57%.
| 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
With a Profit Margin value of 6.91%, EIG perfoms like the industry average, outperforming 41.22% of the companies in the same industry.
In the last couple of years the Profit Margin of EIG has declined.
EIG's Operating Margin of 8.59% is on the low side compared to the rest of the industry. EIG is outperformed by 64.19% 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/WACC0.21
WACC8.76%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for EIG have decreased strongly by -64.82% in the last year.
EIG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.11% yearly.
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 decrease in Earnings Per Share. The EPS will decrease by -6.69% on average per year.
EIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.00% yearly.
EPS Next Y-29.59%
EPS Next 2Y-16.9%
EPS Next 3Y-6.69%
EPS Next 5YN/A
Revenue Next Year1.08%
Revenue Next 2Y-0.59%
Revenue Next 3Y0%
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 28.04, EIG can be considered very expensive at the moment.
79.05% of the companies in the same industry are cheaper than EIG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.46, EIG is valued at the same level.
Based on the Price/Forward Earnings ratio of 15.24, the valuation of EIG can be described as correct.
EIG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EIG is more expensive than 65.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, EIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.04 | ||
| Fwd PE | 15.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIG is valued a bit cheaper than 60.14% of the companies in the same industry.
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 60.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.53 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
A cheap valuation may be justified as EIG's earnings are expected to decrease with -6.69% in the coming years.
PEG (NY)N/A
PEG (5Y)9.01
EPS Next 2Y-16.9%
EPS Next 3Y-6.69%
5. Dividend
5.1 Amount
EIG has a Yearly Dividend Yield of 3.23%.
Compared to an average industry Dividend Yield of 3.32, EIG pays a bit more dividend than its industry peers.
EIG's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
On average, the dividend of EIG grows each year by 6.16%, which is quite nice.
EIG has been paying a dividend for at least 10 years, so it has a reliable track record.
EIG has decreased its dividend 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-16.9%
EPS Next 3Y-6.69%
39.26
-0.33 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.75%
Inst Owner Change-4.51%
Ins Owners0.96%
Ins Owner Change0.74%
Market Cap882.56M
Revenue(TTM)904.80M
Net Income(TTM)62.50M
Analysts74.29
Price Target46.92 (19.51%)
Short Float %2.71%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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)0%
PT rev (3m)-9.8%
EPS NQ rev (1m)-20.64%
EPS NQ rev (3m)-21.97%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)4.01%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.04 | ||
| Fwd PE | 15.24 | ||
| P/S | 0.98 | ||
| P/FCF | 16.53 | ||
| P/OCF | 15.46 | ||
| P/B | 0.85 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 7.89 |
EPS(TTM)1.4
EY3.57%
EPS(NY)2.58
Fwd EY6.56%
FCF(TTM)2.38
FCFY6.05%
OCF(TTM)2.54
OCFY6.47%
SpS40.25
BVpS46.23
TBVpS44.01
PEG (NY)N/A
PEG (5Y)9.01
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
WACC8.76%
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-29.59%
EPS Next 2Y-16.9%
EPS Next 3Y-6.69%
EPS Next 5YN/A
Revenue 1Y (TTM)1.69%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%12.29%
Revenue Next Year1.08%
Revenue Next 2Y-0.59%
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 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 3 / 10.
Can you provide the PE and PB ratios for EIG stock?
The Price/Earnings (PE) ratio for EMPLOYERS HOLDINGS INC (EIG) is 28.04 and the Price/Book (PB) ratio is 0.85.
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 -29.59% in the next year.