HANOVER INSURANCE GROUP INC/ (THG) Fundamental Analysis & Valuation

NYSE:THG • US4108671052

174.43 USD
-3.26 (-1.83%)
At close: Mar 9, 2026
174.43 USD
0 (0%)
After Hours: 3/9/2026, 7:33:25 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This THG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to THG. THG was compared to 149 industry peers in the Insurance industry. While THG is still in line with the averages on profitability rating, there are concerns on its financial health. THG has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. THG Profitability Analysis

1.1 Basic Checks

  • In the past year THG was profitable.
  • In the past year THG had a positive cash flow from operations.
  • THG had positive earnings in each of the past 5 years.
  • Each year in the past 5 years THG had a positive operating cash flow.
THG Yearly Net Income VS EBIT VS OCF VS FCFTHG 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 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • THG's Return On Assets of 3.91% is fine compared to the rest of the industry. THG outperforms 73.15% of its industry peers.
  • With an excellent Return On Equity value of 18.55%, THG belongs to the best of the industry, outperforming 81.88% of the companies in the same industry.
  • THG's Return On Invested Capital of 4.25% is fine compared to the rest of the industry. THG outperforms 69.13% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for THG is significantly below the industry average of 15.25%.
  • The 3 year average ROIC (2.62%) for THG is below the current ROIC(4.25%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.91%
ROE 18.55%
ROIC 4.25%
ROA(3y)2.31%
ROA(5y)2.14%
ROE(3y)11.66%
ROE(5y)10.65%
ROIC(3y)2.62%
ROIC(5y)2.39%
THG Yearly ROA, ROE, ROICTHG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • THG has a better Profit Margin (10.07%) than 63.09% of its industry peers.
  • THG's Profit Margin has improved in the last couple of years.
  • The Operating Margin of THG (13.24%) is comparable to the rest of the industry.
  • THG's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.24%
PM (TTM) 10.07%
GM N/A
OM growth 3Y41.73%
OM growth 5Y5.05%
PM growth 3Y68.88%
PM growth 5Y6.33%
GM growth 3YN/A
GM growth 5YN/A
THG Yearly Profit, Operating, Gross MarginsTHG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. THG Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so THG is destroying value.
  • Compared to 1 year ago, THG has less shares outstanding
  • THG has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, THG has a worse debt to assets ratio.
THG Yearly Shares OutstandingTHG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
THG Yearly Total Debt VS Total AssetsTHG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • The Debt to FCF ratio of THG is 1.04, which is an excellent value as it means it would take THG, only 1.04 years of fcf income to pay off all of its debts.
  • THG has a Debt to FCF ratio of 1.04. This is in the better half of the industry: THG outperforms 68.46% of its industry peers.
  • THG has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
  • THG has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: THG outperforms 48.32% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 1.04
Altman-Z N/A
ROIC/WACC0.54
WACC7.92%
THG Yearly LT Debt VS Equity VS FCFTHG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
THG Yearly Current Assets VS Current LiabilitesTHG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. THG Growth Analysis

3.1 Past

  • THG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.29%, which is quite impressive.
  • The Earnings Per Share has been growing by 15.38% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 5.61% in the past year.
  • The Revenue has been growing slightly by 6.33% on average over the past years.
EPS 1Y (TTM)43.29%
EPS 3Y51.25%
EPS 5Y15.38%
EPS Q2Q%8.83%
Revenue 1Y (TTM)5.61%
Revenue growth 3Y5.84%
Revenue growth 5Y6.33%
Sales Q2Q%3.01%

3.2 Future

  • THG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.63% yearly.
  • Based on estimates for the next years, THG will show a small growth in Revenue. The Revenue will grow by 5.61% on average per year.
EPS Next Y-9.46%
EPS Next 2Y-2.09%
EPS Next 3Y-1.63%
EPS Next 5YN/A
Revenue Next Year4.52%
Revenue Next 2Y4.38%
Revenue Next 3Y5.61%
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.
THG Yearly Revenue VS EstimatesTHG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
THG Yearly EPS VS EstimatesTHG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15

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Find the best growth stocksShow best growing peers

5

4. THG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 9.13, the valuation of THG can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of THG indicates a somewhat cheap valuation: THG is cheaper than 65.10% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of THG to the average of the S&P500 Index (26.46), we can say THG is valued rather cheaply.
  • THG is valuated reasonably with a Price/Forward Earnings ratio of 10.09.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of THG is on the same level as its industry peers.
  • THG is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.65, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.13
Fwd PE 10.09
THG Price Earnings VS Forward Price EarningsTHG 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 Price/Free Cash Flow ratio, THG is valued a bit cheaper than 67.11% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.24
EV/EBITDA N/A
THG Per share dataTHG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • THG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-2.09%
EPS Next 3Y-1.63%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. THG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.13%, THG has a reasonable but not impressive dividend return.
  • THG's Dividend Yield is comparable with the industry average which is at 2.89.
  • THG's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.13%

5.2 History

  • On average, the dividend of THG grows each year by 6.38%, which is quite nice.
  • THG has paid a dividend for at least 10 years, which is a reliable track record.
  • THG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.38%
Div Incr Years4
Div Non Decr Years4
THG Yearly Dividends per shareTHG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

5.3 Sustainability

  • 19.71% of the earnings are spent on dividend by THG. This is a low number and sustainable payout ratio.
DP19.71%
EPS Next 2Y-2.09%
EPS Next 3Y-1.63%
THG Yearly Income VS Free CF VS DividendTHG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
THG Dividend Payout.THG Dividend Payout, showing the Payout Ratio.THG Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

THG Fundamentals: All Metrics, Ratios and Statistics

HANOVER INSURANCE GROUP INC/

NYSE:THG (3/9/2026, 7:33:25 PM)

After market: 174.43 0 (0%)

174.43

-3.26 (-1.83%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-03
Earnings (Next)04-28
Inst Owners91.1%
Inst Owner Change-0.09%
Ins Owners1.04%
Ins Owner Change2.54%
Market Cap6.13B
Revenue(TTM)6.58B
Net Income(TTM)662.50M
Analysts78.18
Price Target204.58 (17.28%)
Short Float %2.35%
Short Ratio2.34
Dividend
Industry RankSector Rank
Dividend Yield 2.13%
Yearly Dividend3.66
Dividend Growth(5Y)6.38%
DP19.71%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.58%
Min EPS beat(2)15.67%
Max EPS beat(2)19.49%
EPS beat(4)4
Avg EPS beat(4)21.02%
Min EPS beat(4)11.06%
Max EPS beat(4)37.85%
EPS beat(8)8
Avg EPS beat(8)21.62%
EPS beat(12)9
Avg EPS beat(12)0.91%
EPS beat(16)13
Avg EPS beat(16)1.5%
Revenue beat(2)0
Avg Revenue beat(2)-4.89%
Min Revenue beat(2)-6.57%
Max Revenue beat(2)-3.21%
Revenue beat(4)0
Avg Revenue beat(4)-3.86%
Min Revenue beat(4)-6.57%
Max Revenue beat(4)-2.17%
Revenue beat(8)2
Avg Revenue beat(8)-2.13%
Revenue beat(12)5
Avg Revenue beat(12)-1.64%
Revenue beat(16)8
Avg Revenue beat(16)-0.08%
PT rev (1m)0.07%
PT rev (3m)0.22%
EPS NQ rev (1m)-2.86%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)1.89%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.64%
Valuation
Industry RankSector Rank
PE 9.13
Fwd PE 10.09
P/S 0.93
P/FCF 5.24
P/OCF 5.2
P/B 1.72
P/tB 1.81
EV/EBITDA N/A
EPS(TTM)19.1
EY10.95%
EPS(NY)17.29
Fwd EY9.91%
FCF(TTM)33.3
FCFY19.09%
OCF(TTM)33.52
OCFY19.22%
SpS187.16
BVpS101.61
TBVpS96.52
PEG (NY)N/A
PEG (5Y)0.59
Graham Number208.96
Profitability
Industry RankSector Rank
ROA 3.91%
ROE 18.55%
ROCE 5.53%
ROIC 4.25%
ROICexc 4.57%
ROICexgc 5.57%
OM 13.24%
PM (TTM) 10.07%
GM N/A
FCFM 17.79%
ROA(3y)2.31%
ROA(5y)2.14%
ROE(3y)11.66%
ROE(5y)10.65%
ROIC(3y)2.62%
ROIC(5y)2.39%
ROICexc(3y)2.77%
ROICexc(5y)2.5%
ROICexgc(3y)3.4%
ROICexgc(5y)3.1%
ROCE(3y)3.38%
ROCE(5y)3.07%
ROICexgc growth 3Y41.22%
ROICexgc growth 5Y7.34%
ROICexc growth 3Y42.82%
ROICexc growth 5Y7.91%
OM growth 3Y41.73%
OM growth 5Y5.05%
PM growth 3Y68.88%
PM growth 5Y6.33%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 1.04
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 0.12%
Interest Coverage 26.17
Cash Conversion N/A
Profit Quality 176.68%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC7.92%
ROIC/WACC0.54
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.16%
Cap/Sales(5y)0.19%
Profit Quality(3y)451.46%
Profit Quality(5y)431.3%
High Growth Momentum
Growth
EPS 1Y (TTM)43.29%
EPS 3Y51.25%
EPS 5Y15.38%
EPS Q2Q%8.83%
EPS Next Y-9.46%
EPS Next 2Y-2.09%
EPS Next 3Y-1.63%
EPS Next 5YN/A
Revenue 1Y (TTM)5.61%
Revenue growth 3Y5.84%
Revenue growth 5Y6.33%
Sales Q2Q%3.01%
Revenue Next Year4.52%
Revenue Next 2Y4.38%
Revenue Next 3Y5.61%
Revenue Next 5YN/A
EBIT growth 1Y54.62%
EBIT growth 3Y50.01%
EBIT growth 5Y11.7%
EBIT Next YearN/A
EBIT Next 3Y1.04%
EBIT Next 5YN/A
FCF growth 1Y47.12%
FCF growth 3Y18.44%
FCF growth 5Y11.06%
OCF growth 1Y46.21%
OCF growth 3Y17.72%
OCF growth 5Y10.74%

HANOVER INSURANCE GROUP INC/ / THG FAQ

What is the ChartMill fundamental rating of HANOVER INSURANCE GROUP INC/ (THG) stock?

ChartMill assigns a fundamental rating of 5 / 10 to THG.


Can you provide the valuation status for HANOVER INSURANCE GROUP INC/?

ChartMill assigns a valuation rating of 5 / 10 to HANOVER INSURANCE GROUP INC/ (THG). This can be considered as Fairly Valued.


What is the profitability of THG stock?

HANOVER INSURANCE GROUP INC/ (THG) has a profitability rating of 6 / 10.


Can you provide the financial health for THG stock?

The financial health rating of HANOVER INSURANCE GROUP INC/ (THG) is 3 / 10.


What is the earnings growth outlook for HANOVER INSURANCE GROUP INC/?

The Earnings per Share (EPS) of HANOVER INSURANCE GROUP INC/ (THG) is expected to decline by -9.46% in the next year.