EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
NYSE:EIG - New York Stock Exchange, Inc. - US2922181043 - Common Stock - Currency: USD
Taking everything into account, EIG scores 4 out of 10 in our fundamental rating. EIG was compared to 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
EIG had positive earnings in the past year.
In the past year EIG had a positive cash flow from operations.
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
With a decent Return On Assets value of 2.90%, EIG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
EIG has a Return On Equity (9.58%) which is in line with its industry peers.
EIG has a better Return On Invested Capital (2.94%) than 63.19% of its industry peers.
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 4.07%.
The last Return On Invested Capital (2.94%) for EIG is above the 3 year average (2.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 9.58% | ||
| ROIC | 2.94% |
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
The Profit Margin of EIG (11.99%) is better than 71.53% of its industry peers.
In the last couple of years the Profit Margin of EIG has declined.
The Operating Margin of EIG (14.80%) is better than 70.14% of its industry peers.
In the last couple of years the Operating Margin of EIG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.8% | ||
| PM (TTM) | 11.99% | ||
| 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
There is no outstanding debt for EIG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC9%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.26% over the past year.
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 decrease in Revenue. The Revenue has decreased by -0.84% in the last year.
The Revenue has been growing slightly by 1.05% on average over the past years.
EPS 1Y (TTM)0.26%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%29.85%
Revenue 1Y (TTM)-0.84%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%-9.19%
3.2 Future
The Earnings Per Share is expected to decrease by -3.70% on average over the next years.
The Revenue is expected to grow by 0.85% on average over the next years.
EPS Next Y-2.86%
EPS Next 2Y-3.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.66%
Revenue Next 2Y0.85%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EIG is valuated correctly with a Price/Earnings ratio of 12.16.
The rest of the industry has a similar Price/Earnings ratio as EIG.
EIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 13.81, the valuation of EIG can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EIG is on the same level as its industry peers.
EIG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 13.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EIG is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
EIG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.31 | ||
| EV/EBITDA | 7.3 |
4.3 Compensation for Growth
EIG's earnings are expected to decrease with -3.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.91
EPS Next 2Y-3.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EIG has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.71, EIG pays a bit more dividend than its industry peers.
EIG's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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.
EIG has decreased its dividend recently.
Dividend Growth(5Y)6.16%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
29.10% of the earnings are spent on dividend by EIG. This is a low number and sustainable payout ratio.
DP29.1%
EPS Next 2Y-3.7%
EPS Next 3YN/A
47.77
+0.98 (+2.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.58%
Inst Owner Change7.51%
Ins Owners1.15%
Ins Owner Change3.89%
Market Cap1.15B
Analysts72.5
Price Target56.61 (18.51%)
Short Float %1.89%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend1.21
Dividend Growth(5Y)6.16%
DP29.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.32%
Min EPS beat(2)4.94%
Max EPS beat(2)15.7%
EPS beat(4)4
Avg EPS beat(4)5.93%
Min EPS beat(4)0.4%
Max EPS beat(4)15.7%
EPS beat(8)6
Avg EPS beat(8)8.1%
EPS beat(12)10
Avg EPS beat(12)13.29%
EPS beat(16)11
Avg EPS beat(16)7.8%
Revenue beat(2)0
Avg Revenue beat(2)-5.49%
Min Revenue beat(2)-7.94%
Max Revenue beat(2)-3.04%
Revenue beat(4)0
Avg Revenue beat(4)-5.32%
Min Revenue beat(4)-7.94%
Max Revenue beat(4)-3.04%
Revenue beat(8)3
Avg Revenue beat(8)-2.63%
Revenue beat(12)5
Avg Revenue beat(12)-2.02%
Revenue beat(16)8
Avg Revenue beat(16)0.13%
PT rev (1m)0%
PT rev (3m)-2.63%
EPS NQ rev (1m)-2.58%
EPS NQ rev (3m)-7.67%
EPS NY rev (1m)-1.26%
EPS NY rev (3m)-4.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 13.81 | ||
| P/S | 1.34 | ||
| P/FCF | 13.31 | ||
| P/OCF | 12.7 | ||
| P/B | 1.07 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 7.3 |
EPS(TTM)3.93
EY8.23%
EPS(NY)3.46
Fwd EY7.24%
FCF(TTM)3.59
FCFY7.51%
OCF(TTM)3.76
OCFY7.87%
SpS35.78
BVpS44.75
TBVpS42.67
PEG (NY)N/A
PEG (5Y)3.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 9.58% | ||
| ROCE | 3.67% | ||
| ROIC | 2.94% | ||
| ROICexc | 3.03% | ||
| ROICexgc | 3.6% | ||
| OM | 14.8% | ||
| PM (TTM) | 11.99% | ||
| GM | N/A | ||
| FCFM | 10.03% |
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-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 25.15% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.95% | ||
| Profit Quality | 83.71% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC9%
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)0.26%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%29.85%
EPS Next Y-2.86%
EPS Next 2Y-3.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.84%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%-9.19%
Revenue Next Year-3.66%
Revenue Next 2Y0.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-24%
EBIT growth 3Y-0.16%
EBIT growth 5Y-5.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.53%
FCF growth 3Y114.94%
FCF growth 5Y-8.42%
OCF growth 1Y3.55%
OCF growth 3Y91.97%
OCF growth 5Y-9.1%