HANOVER INSURANCE GROUP INC/ (THG) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:THG • US4108671052

171.57 USD
-4.4 (-2.5%)
At close: Feb 9, 2026
171.57 USD
0 (0%)
After Hours: 2/9/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

THG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 149 industry peers in the Insurance industry. THG has a medium profitability rating, but doesn't score so well on its financial health evaluation. THG has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year THG was profitable.
  • In the past year THG had a positive cash flow from operations.
  • In the past 5 years THG has always been profitable.
  • THG had a positive operating cash flow in 4 of the past 5 years.
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

1.2 Ratios

  • With a decent Return On Assets value of 3.77%, THG is doing good in the industry, outperforming 74.50% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 18.44%, THG belongs to the top of the industry, outperforming 81.88% of the companies in the same industry.
  • THG has a better Return On Invested Capital (4.04%) than 65.77% 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 14.88%.
  • The last Return On Invested Capital (4.04%) for THG is above the 3 year average (2.55%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.77%
ROE 18.44%
ROIC 4.04%
ROA(3y)2.31%
ROA(5y)2.14%
ROE(3y)11.66%
ROE(5y)10.65%
ROIC(3y)2.55%
ROIC(5y)2.35%
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

  • With a decent Profit Margin value of 9.72%, THG is doing good in the industry, outperforming 61.07% of the companies in the same industry.
  • In the last couple of years the Profit Margin of THG has grown nicely.
  • The Operating Margin of THG (12.71%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of THG has grown nicely.
Industry RankSector Rank
OM 12.71%
PM (TTM) 9.72%
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. Health

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
  • The number of shares outstanding for THG has been reduced compared to 5 years ago.
  • The debt/assets ratio for THG is higher compared to a year ago.
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

  • THG has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.28, THG is in the better half of the industry, outperforming 64.43% of the companies in the same industry.
  • THG has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
  • THG has a Debt to Equity ratio (0.37) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 1.28
Altman-Z N/A
ROIC/WACC0.49
WACC8.24%
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. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 43.29% over the past year.
  • THG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.38% yearly.
  • Looking at the last year, THG shows a small growth in Revenue. The Revenue has grown by 5.61% in the last year.
  • Measured over the past years, THG shows a small growth in Revenue. The Revenue has been growing by 6.33% on average per year.
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%16.87%

3.2 Future

  • The Earnings Per Share is expected to decrease by -3.51% on average over the next years.
  • Based on estimates for the next years, THG will show a small growth in Revenue. The Revenue will grow by 5.21% on average per year.
EPS Next Y-11.14%
EPS Next 2Y-3.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.18%
Revenue Next 2Y5.21%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 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 5 10 15

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • THG is valuated reasonably with a Price/Earnings ratio of 8.98.
  • Based on the Price/Earnings ratio, THG is valued a bit cheaper than 67.79% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of THG to the average of the S&P500 Index (28.06), we can say THG is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.11 indicates a reasonable valuation of THG.
  • THG's Price/Forward Earnings is on the same level as the industry average.
  • THG is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.86, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.98
Fwd PE 10.11
THG Price Earnings VS Forward Price EarningsTHG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, THG is valued a bit cheaper than 66.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.09
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

  • The decent profitability rating of THG may justify a higher PE ratio.
  • THG's earnings are expected to decrease with -3.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-3.51%
EPS Next 3YN/A

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

5

5. Dividend

5.1 Amount

  • THG has a Yearly Dividend Yield of 2.16%.
  • Compared to an average industry Dividend Yield of 2.23, THG has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, THG pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.16%

5.2 History

  • The dividend of THG decreases each year by -18.55%.
  • 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)-18.55%
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 2 4 6 8

5.3 Sustainability

  • THG pays out 20.46% of its income as dividend. This is a sustainable payout ratio.
  • THG's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP20.46%
EPS Next 2Y-3.51%
EPS Next 3YN/A
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
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

HANOVER INSURANCE GROUP INC/

NYSE:THG (2/9/2026, 8:04:00 PM)

After market: 171.57 0 (0%)

171.57

-4.4 (-2.5%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-03
Earnings (Next)04-28
Inst Owners90.46%
Inst Owner Change-1.28%
Ins Owners0.85%
Ins Owner Change-0.7%
Market Cap6.10B
Revenue(TTM)6.58B
Net Income(TTM)631.90M
Analysts76.67
Price Target204.44 (19.16%)
Short Float %2.01%
Short Ratio2.27
Dividend
Industry RankSector Rank
Dividend Yield 2.16%
Yearly Dividend3.46
Dividend Growth(5Y)-18.55%
DP20.46%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.67%
Min EPS beat(2)19.49%
Max EPS beat(2)37.85%
EPS beat(4)4
Avg EPS beat(4)31.23%
Min EPS beat(4)11.06%
Max EPS beat(4)56.53%
EPS beat(8)8
Avg EPS beat(8)21.37%
EPS beat(12)9
Avg EPS beat(12)-0.32%
EPS beat(16)13
Avg EPS beat(16)2.79%
Revenue beat(2)0
Avg Revenue beat(2)-4.37%
Min Revenue beat(2)-6.57%
Max Revenue beat(2)-2.17%
Revenue beat(4)1
Avg Revenue beat(4)-2.91%
Min Revenue beat(4)-6.57%
Max Revenue beat(4)0.56%
Revenue beat(8)2
Avg Revenue beat(8)-2.43%
Revenue beat(12)6
Avg Revenue beat(12)-0.59%
Revenue beat(16)9
Avg Revenue beat(16)0.68%
PT rev (1m)0.15%
PT rev (3m)0.79%
EPS NQ rev (1m)7.35%
EPS NQ rev (3m)7.49%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
Industry RankSector Rank
PE 8.98
Fwd PE 10.11
P/S 0.94
P/FCF 6.09
P/OCF 6.04
P/B 1.78
P/tB 1.88
EV/EBITDA N/A
EPS(TTM)19.1
EY11.13%
EPS(NY)16.97
Fwd EY9.89%
FCF(TTM)28.16
FCFY16.41%
OCF(TTM)28.42
OCFY16.57%
SpS182.63
BVpS96.3
TBVpS91.27
PEG (NY)N/A
PEG (5Y)0.58
Graham Number203.43
Profitability
Industry RankSector Rank
ROA 3.77%
ROE 18.44%
ROCE 5.28%
ROIC 4.04%
ROICexc 4.29%
ROICexgc 5.2%
OM 12.71%
PM (TTM) 9.72%
GM N/A
FCFM 15.42%
ROA(3y)2.31%
ROA(5y)2.14%
ROE(3y)11.66%
ROE(5y)10.65%
ROIC(3y)2.55%
ROIC(5y)2.35%
ROICexc(3y)2.69%
ROICexc(5y)2.45%
ROICexgc(3y)3.4%
ROICexgc(5y)3.1%
ROCE(3y)3.29%
ROCE(5y)3.02%
ROICexgc growth 3Y41.14%
ROICexgc growth 5Y7.31%
ROICexc growth 3Y40.35%
ROICexc growth 5Y6.79%
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 0.37
Debt/FCF 1.28
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 0.15%
Interest Coverage 250
Cash Conversion N/A
Profit Quality 158.54%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC8.24%
ROIC/WACC0.49
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.29%
EPS 3Y51.25%
EPS 5Y15.38%
EPS Q2Q%8.83%
EPS Next Y-11.14%
EPS Next 2Y-3.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.61%
Revenue growth 3Y5.84%
Revenue growth 5Y6.33%
Sales Q2Q%16.87%
Revenue Next Year5.18%
Revenue Next 2Y5.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y68.34%
EBIT growth 3Y50.01%
EBIT growth 5Y11.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y48.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.59%
OCF growth 3YN/A
OCF growth 5YN/A

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 -11.14% in the next year.