EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIG - US2922181043 - Common Stock
43.95 USD
-0.65 (-1.46%)
43.95 USD
0 (0%)
EIG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 146 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.
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.
- Each year in the past 5 years EIG has been profitable.
- In the past 5 years EIG always reported a positive cash flow from operatings.
1.2 Ratios
- EIG's Return On Assets of 1.77% is in line compared to the rest of the industry. EIG outperforms 47.95% of its industry peers.
- With a Return On Equity value of 6.01%, EIG is not doing good in the industry: 73.29% of the companies in the same industry are doing better.
- Looking at the Return On Invested Capital, with a value of 1.81%, EIG is in line with its industry, outperforming 46.58% of the companies in the same industry.
- EIG had an Average Return On Invested Capital over the past 3 years of 2.84%. This is significantly below the industry average of 15.11%.
| 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's Profit Margin of 6.91% is in line compared to the rest of the industry. EIG outperforms 43.15% of its industry peers.
- EIG's Profit Margin has declined in the last couple of years.
- EIG's Operating Margin of 8.59% is on the low side compared to the rest of the industry. EIG is outperformed by 64.38% of its industry peers.
- In the last couple of years the Operating Margin of EIG has declined.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EIG is destroying value.
- Compared to 1 year ago, EIG has less shares outstanding
- 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/WACC0.2
WACC8.84%
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.
- 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.
- The Revenue has been growing slightly by 1.05% on average over the past years.
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
- 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
- The Price/Earnings ratio is 31.39, which means the current valuation is very expensive for EIG.
- Based on the Price/Earnings ratio, EIG is valued a bit more expensive than the industry average as 76.03% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, EIG is valued at the same level.
- The Price/Forward Earnings ratio is 20.56, which indicates a rather expensive current valuation of EIG.
- Based on the Price/Forward Earnings ratio, EIG is valued a bit more expensive than the industry average as 72.60% of the companies are valued more cheaply.
- EIG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.39 | ||
| Fwd PE | 20.56 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EIG.
- 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 60.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.5 | ||
| EV/EBITDA | 8.96 |
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)10.09
EPS Next 2Y-24.3%
EPS Next 3Y-14.6%
5. Dividend
5.1 Amount
- EIG has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.
- EIG's Dividend Yield is a higher than the industry average which is at 2.42.
- EIG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
- 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-24.3%
EPS Next 3Y-14.6%
43.95
-0.65 (-1.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners86.2%
Inst Owner Change-0.18%
Ins Owners1.05%
Ins Owner Change0.74%
Market Cap988.00M
Revenue(TTM)904.80M
Net Income(TTM)62.50M
Analysts74.29
Price Target45.39 (3.28%)
Short Float %2.96%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend1.21
Dividend Growth(5Y)6.16%
DP48.48%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-3.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-70.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.39 | ||
| Fwd PE | 20.56 | ||
| P/S | 1.09 | ||
| P/FCF | 18.5 | ||
| P/OCF | 17.3 | ||
| P/B | 0.95 | ||
| P/tB | 1 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)1.4
EY3.19%
EPS(NY)2.14
Fwd EY4.86%
FCF(TTM)2.38
FCFY5.4%
OCF(TTM)2.54
OCFY5.78%
SpS40.25
BVpS46.23
TBVpS44.01
PEG (NY)N/A
PEG (5Y)10.09
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
WACC8.84%
ROIC/WACC0.2
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.
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%.