EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
NYSE:EIG - New York Stock Exchange, Inc. - US2922181043 - Common Stock - Currency: USD
Overall EIG gets a fundamental rating of 4 out of 10. We evaluated EIG against 143 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 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.
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.
1.2 Ratios
With a decent Return On Assets value of 2.90%, EIG is doing good in the industry, outperforming 67.13% of the companies in the same industry.
EIG has a Return On Equity (9.58%) which is comparable to the rest of the industry.
EIG's Return On Invested Capital of 2.94% is fine compared to the rest of the industry. EIG outperforms 63.64% 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 4.13%.
The 3 year average ROIC (2.84%) for EIG is below the current ROIC(2.94%), indicating increased profibility in the last year.
| 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 72.73% of its industry peers.
In the last couple of years the Profit Margin of EIG has declined.
Looking at the Operating Margin, with a value of 14.80%, EIG is in the better half of the industry, outperforming 69.93% of the companies in the same industry.
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
Compared to 5 years ago, EIG has less shares outstanding
Compared to 1 year ago, EIG has an improved debt to assets ratio.
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/WACC0.32
WACC9.12%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
EIG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.26%.
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.
Measured over the past years, EIG shows a small growth in Revenue. The Revenue has been growing by 1.05% on average per year.
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
EIG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.65% yearly.
EIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.85% yearly.
EPS Next Y-1.62%
EPS Next 2Y-2.65%
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.44, EIG is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of EIG is on the same level as its industry peers.
EIG is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.82, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, EIG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
EIG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EIG is cheaper than 64.34% of the companies in the same industry.
EIG's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. EIG is more expensive than 62.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.61 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
A cheap valuation may be justified as EIG's earnings are expected to decrease with -2.65% in the coming years.
PEG (NY)N/A
PEG (5Y)4
EPS Next 2Y-2.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EIG has a Yearly Dividend Yield of 2.63%.
Compared to an average industry Dividend Yield of 3.23, EIG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, EIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
The dividend of EIG is nicely growing with an annual growth rate of 6.16%!
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
EIG pays out 29.10% of its income as dividend. This is a sustainable payout ratio.
DP29.1%
EPS Next 2Y-2.65%
EPS Next 3YN/A
48.87
+0.52 (+1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners83.32%
Inst Owner Change7.46%
Ins Owners1.12%
Ins Owner Change4.03%
Market Cap1.17B
Analysts72.5
Price Target56.61 (15.84%)
Short Float %1.62%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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)-5.41%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)-2.77%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)-2.42%
Revenue NQ rev (3m)-3.99%
Revenue NY rev (1m)-3.16%
Revenue NY rev (3m)-4.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 13.82 | ||
| P/S | 1.37 | ||
| P/FCF | 13.61 | ||
| P/OCF | 13 | ||
| P/B | 1.09 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)3.93
EY8.04%
EPS(NY)3.54
Fwd EY7.23%
FCF(TTM)3.59
FCFY7.35%
OCF(TTM)3.76
OCFY7.69%
SpS35.78
BVpS44.75
TBVpS42.67
PEG (NY)N/A
PEG (5Y)4
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
WACC9.12%
ROIC/WACC0.32
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-1.62%
EPS Next 2Y-2.65%
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%