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EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis

NYSE:EIG - New York Stock Exchange, Inc. - US2922181043 - Common Stock - Currency: USD

48.91  +0.4 (+0.82%)

Premarket: 47.95 -0.96 (-1.96%)

Fundamental Rating

4

Taking everything into account, EIG scores 4 out of 10 in our fundamental rating. EIG was compared to 143 industry peers in the Insurance industry. EIG has an average financial health and profitability rating. EIG has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year EIG was profitable.
In the past year EIG had a positive cash flow from operations.
In the past 5 years EIG has always been profitable.
EIG had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

1.2 Ratios

Looking at the Return On Assets, with a value of 3.35%, EIG is in the better half of the industry, outperforming 73.43% of the companies in the same industry.
The Return On Equity of EIG (11.10%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.41%, EIG is in the better half of the industry, outperforming 67.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EIG is in line with the industry average of 4.47%.
The last Return On Invested Capital (3.41%) for EIG is above the 3 year average (2.84%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.35%
ROE 11.1%
ROIC 3.41%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

EIG has a Profit Margin of 13.47%. This is in the better half of the industry: EIG outperforms 74.13% of its industry peers.
In the last couple of years the Profit Margin of EIG has declined.
EIG has a Operating Margin of 16.65%. This is in the better half of the industry: EIG outperforms 69.93% of its industry peers.
EIG's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 16.65%
PM (TTM) 13.47%
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 2015 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.
Compared to 1 year ago, EIG has less shares outstanding
EIG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EIG has been reduced compared to a year ago.
EIG Yearly Shares OutstandingEIG Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACC0.38
WACC9.05%
EIG Yearly LT Debt VS Equity VS FCFEIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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3

3. Growth

3.1 Past

The earnings per share for EIG have decreased by -3.12% in the last year.
The Earnings Per Share has been growing slightly by 3.11% on average over the past years.
EIG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.50%.
The Revenue has been growing slightly by 1.05% on average over the past years.
EPS 1Y (TTM)-3.12%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-17.86%
Revenue 1Y (TTM)3.5%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%-4.03%

3.2 Future

The Earnings Per Share is expected to decrease by -0.42% on average over the next years.
EIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.13% yearly.
EPS Next Y1.19%
EPS Next 2Y-0.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.51%
Revenue Next 2Y1.13%
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.
EIG Yearly Revenue VS EstimatesEIG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
EIG Yearly EPS VS EstimatesEIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.11, the valuation of EIG can be described as correct.
EIG's Price/Earnings is on the same level as the industry average.
EIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.92.
With a Price/Forward Earnings ratio of 12.96, EIG is valued correctly.
EIG's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of EIG to the average of the S&P500 Index (21.65), we can say EIG is valued slightly cheaper.
Industry RankSector Rank
PE 13.11
Fwd PE 12.96
EIG Price Earnings VS Forward Price EarningsEIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EIG is valued a bit cheaper than 68.53% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as EIG.
Industry RankSector Rank
P/FCF 16.6
EV/EBITDA 6.85
EIG Per share dataEIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EIG does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)11.02
PEG (5Y)4.21
EPS Next 2Y-0.42%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

EIG has a Yearly Dividend Yield of 2.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.28, EIG pays a bit more dividend than its industry peers.
EIG's Dividend Yield is comparable with the S&P500 average which is at 2.51.
Industry RankSector Rank
Dividend Yield 2.48%

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
EIG Yearly Dividends per shareEIG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

EIG pays out 25.55% of its income as dividend. This is a sustainable payout ratio.
DP25.55%
EPS Next 2Y-0.42%
EPS Next 3YN/A
EIG Yearly Income VS Free CF VS DividendEIG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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

NYSE:EIG (4/24/2025, 7:06:58 PM)

Premarket: 47.95 -0.96 (-1.96%)

48.91

+0.4 (+0.82%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-01 2025-05-01/amc
Inst Owners83.32%
Inst Owner Change0.85%
Ins Owners1.12%
Ins Owner Change2.77%
Market Cap1.19B
Analysts72.5
Price Target56.61 (15.74%)
Short Float %1.73%
Short Ratio2.37
Dividend
Industry RankSector Rank
Dividend Yield 2.48%
Yearly Dividend1.21
Dividend Growth(5Y)6.16%
DP25.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-05 2025-03-05 (0.3)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.81%
Min EPS beat(2)2.69%
Max EPS beat(2)4.94%
EPS beat(4)3
Avg EPS beat(4)0.5%
Min EPS beat(4)-6.04%
Max EPS beat(4)4.94%
EPS beat(8)6
Avg EPS beat(8)6.37%
EPS beat(12)9
Avg EPS beat(12)8.69%
EPS beat(16)11
Avg EPS beat(16)7.25%
Revenue beat(2)0
Avg Revenue beat(2)-4.67%
Min Revenue beat(2)-6.3%
Max Revenue beat(2)-3.04%
Revenue beat(4)1
Avg Revenue beat(4)-2.94%
Min Revenue beat(4)-6.3%
Max Revenue beat(4)1.58%
Revenue beat(8)3
Avg Revenue beat(8)-1.78%
Revenue beat(12)5
Avg Revenue beat(12)-2.14%
Revenue beat(16)9
Avg Revenue beat(16)0.66%
PT rev (1m)-2.63%
PT rev (3m)-2.63%
EPS NQ rev (1m)1.11%
EPS NQ rev (3m)3.4%
EPS NY rev (1m)0.63%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-1.67%
Valuation
Industry RankSector Rank
PE 13.11
Fwd PE 12.96
P/S 1.35
P/FCF 16.6
P/OCF 15.53
P/B 1.11
P/tB 1.16
EV/EBITDA 6.85
EPS(TTM)3.73
EY7.63%
EPS(NY)3.77
Fwd EY7.72%
FCF(TTM)2.95
FCFY6.03%
OCF(TTM)3.15
OCFY6.44%
SpS36.3
BVpS44.05
TBVpS42
PEG (NY)11.02
PEG (5Y)4.21
Profitability
Industry RankSector Rank
ROA 3.35%
ROE 11.1%
ROCE 4.25%
ROIC 3.41%
ROICexc 3.48%
ROICexgc 4.14%
OM 16.65%
PM (TTM) 13.47%
GM N/A
FCFM 8.12%
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-Score7
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 29.34%
Cap/Sales 0.56%
Interest Coverage 1466
Cash Conversion 46.79%
Profit Quality 60.29%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC9.05%
ROIC/WACC0.38
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)-3.12%
EPS 3Y15.99%
EPS 5Y3.11%
EPS Q2Q%-17.86%
EPS Next Y1.19%
EPS Next 2Y-0.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.5%
Revenue growth 3Y7.8%
Revenue growth 5Y1.05%
Sales Q2Q%-4.03%
Revenue Next Year-0.51%
Revenue Next 2Y1.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.34%
EBIT growth 3Y-0.16%
EBIT growth 5Y-5.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y51.48%
FCF growth 3Y114.94%
FCF growth 5Y-8.42%
OCF growth 1Y54.66%
OCF growth 3Y91.97%
OCF growth 5Y-9.1%