EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:EIG • US2922181043

43.62 USD
-1.08 (-2.42%)
At close: Jan 30, 2026
43.62 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

3

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. EIG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. EIG does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

3

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.
  • 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.
EIG Yearly Net Income VS EBIT VS OCF VS FCFEIG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

1.2 Ratios

  • With a Return On Assets value of 1.77%, EIG perfoms like the industry average, outperforming 48.65% of the companies in the same industry.
  • EIG has a worse Return On Equity (6.01%) than 72.30% of its industry peers.
  • EIG has a Return On Invested Capital of 1.81%. This is comparable to the rest of the industry: EIG outperforms 45.95% of its industry peers.
  • EIG had an Average Return On Invested Capital over the past 3 years of 2.84%. This is significantly below the industry average of 14.94%.
Industry RankSector 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%
EIG Yearly ROA, ROE, ROICEIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • With a Profit Margin value of 6.91%, EIG perfoms like the industry average, outperforming 43.92% of the companies in the same industry.
  • In the last couple of years the Profit Margin of EIG has declined.
  • The Operating Margin of EIG (8.59%) is worse than 64.86% of its industry peers.
  • EIG's Operating Margin has declined in the last couple of years.
Industry RankSector 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
EIG Yearly Profit, Operating, Gross MarginsEIG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EIG is destroying value.
  • The number of shares outstanding for EIG has been reduced compared to 1 year ago.
  • Compared to 5 years ago, EIG has less shares outstanding
  • Compared to 1 year ago, EIG has an improved debt to assets ratio.
EIG Yearly Shares OutstandingEIG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
EIG Yearly Total Debt VS Total AssetsEIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACC0.2
WACC8.91%
EIG Yearly LT Debt VS Equity VS FCFEIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
EIG Yearly Current Assets VS Current LiabilitesEIG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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2

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%.
  • EIG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.11% yearly.
  • The Revenue has been growing slightly by 1.69% in the past 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

  • The Earnings Per Share is expected to decrease by -14.60% on average over the next years. This is quite bad
  • 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-79.44%
EPS Next 2Y-24.26%
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.
  • 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.
EIG Yearly Revenue VS EstimatesEIG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
EIG Yearly EPS VS EstimatesEIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

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1

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 31.16, which means the current valuation is very expensive for EIG.
  • 77.03% 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 28.32, EIG is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 20.39, the valuation of EIG can be described as rather expensive.
  • 72.97% 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 25.57, EIG is valued a bit cheaper.
Industry RankSector Rank
PE 31.16
Fwd PE 20.39
EIG Price Earnings VS Forward Price EarningsEIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • EIG's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, EIG is valued a bit more expensive than the industry average as 60.14% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 18.36
EV/EBITDA 8.87
EIG Per share dataEIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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)10.01
EPS Next 2Y-24.26%
EPS Next 3Y-14.6%

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5

5. Dividend

5.1 Amount

  • EIG has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.23, EIG pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.83, EIG pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.86%

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
EIG Yearly Dividends per shareEIG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

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-24.26%
EPS Next 3Y-14.6%
EIG Yearly Income VS Free CF VS DividendEIG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
EIG Dividend Payout.EIG Dividend Payout, showing the Payout Ratio.EIG Dividend Payout.PayoutRetained Earnings

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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%.