EMPLOYERS HOLDINGS INC (EIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EIG - US2922181043 - Common Stock
42.84 USD
-0.33 (-0.76%)
42.84 USD
0 (0%)
EIG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 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.
In the past 5 years EIG has always been profitable.
Each year in the past 5 years EIG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.77%, EIG is in line with its industry, outperforming 48.65% of the companies in the same industry.
EIG's Return On Equity of 6.01% is on the low side compared to the rest of the industry. EIG is outperformed by 72.30% of its industry peers.
EIG has a Return On Invested Capital (1.81%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EIG is significantly below the industry average of 14.93%.
| 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 43.92% of its industry peers.
In the last couple of years the Profit Margin of EIG has declined.
EIG has a worse Operating Margin (8.59%) than 64.86% of its industry peers.
EIG's Operating Margin has declined in the last couple of years.
| 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
EIG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for EIG has been reduced compared to 1 year ago.
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.
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 1.69%.
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
Based on estimates for the next years, EIG will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.60% on average per year.
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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.60, the valuation of EIG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EIG indicates a slightly more expensive valuation: EIG is more expensive than 75.68% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. EIG is around the same levels.
With a Price/Forward Earnings ratio of 20.04, EIG is valued on the expensive side.
71.62% 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 23.23, EIG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.6 | ||
| Fwd PE | 20.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EIG is on the same level as its industry peers.
60.14% of the companies in the same industry are cheaper than EIG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.03 | ||
| EV/EBITDA | 8.68 |
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)9.83
EPS Next 2Y-24.3%
EPS Next 3Y-14.6%
5. Dividend
5.1 Amount
EIG has a Yearly Dividend Yield of 2.97%. 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 2.48.
EIG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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.
The dividend of EIG decreased 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%
42.84
-0.33 (-0.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.2%
Inst Owner Change0%
Ins Owners1.05%
Ins Owner Change0.74%
Market Cap963.04M
Revenue(TTM)904.80M
Net Income(TTM)62.50M
Analysts74.29
Price Target45.39 (5.95%)
Short Float %2.96%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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)-3.26%
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 | 30.6 | ||
| Fwd PE | 20.04 | ||
| P/S | 1.06 | ||
| P/FCF | 18.03 | ||
| P/OCF | 16.87 | ||
| P/B | 0.93 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)1.4
EY3.27%
EPS(NY)2.14
Fwd EY4.99%
FCF(TTM)2.38
FCFY5.54%
OCF(TTM)2.54
OCFY5.93%
SpS40.25
BVpS46.23
TBVpS44.01
PEG (NY)N/A
PEG (5Y)9.83
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%.