HANOVER INSURANCE GROUP INC/ (THG) Stock Fundamental Analysis
USA - NYSE:THG - US4108671052 - Common Stock
182.27 USD
+0.04 (+0.02%)
Taking everything into account, THG scores 5 out of 10 in our fundamental rating. THG was compared to 146 industry peers in the Insurance industry. THG has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on THG.
1. Profitability
1.1 Basic Checks
In the past year THG was profitable.
THG had a positive operating cash flow in the past year.
In the past 5 years THG has always been profitable.
In the past 5 years THG always reported a positive cash flow from operatings.
1.2 Ratios
THG has a better Return On Assets (3.77%) than 75.34% of its industry peers.
Looking at the Return On Equity, with a value of 18.44%, THG belongs to the top of the industry, outperforming 82.19% of the companies in the same industry.
THG has a Return On Invested Capital of 4.13%. This is in the better half of the industry: THG outperforms 70.55% of its industry peers.
THG had an Average Return On Invested Capital over the past 3 years of 1.75%. This is below the industry average of 4.51%.
The 3 year average ROIC (1.75%) for THG is below the current ROIC(4.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 18.44% | ||
| ROIC | 4.13% |
ROA(3y)1.29%
ROA(5y)1.89%
ROE(3y)7.13%
ROE(5y)9.18%
ROIC(3y)1.75%
ROIC(5y)2.21%
1.3 Margins
Looking at the Profit Margin, with a value of 9.72%, THG is in the better half of the industry, outperforming 63.70% of the companies in the same industry.
In the last couple of years the Profit Margin of THG has declined.
THG's Operating Margin of 12.71% is in line compared to the rest of the industry. THG outperforms 54.79% of its industry peers.
In the last couple of years the Operating Margin of THG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.71% | ||
| PM (TTM) | 9.72% | ||
| GM | N/A |
OM growth 3Y1.9%
OM growth 5Y-0.99%
PM growth 3Y-5.85%
PM growth 5Y-5.09%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), THG is destroying value.
Compared to 1 year ago, THG has more shares outstanding
Compared to 5 years ago, THG has less shares outstanding
The debt/assets ratio for THG has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of THG is 1.28, which is an excellent value as it means it would take THG, only 1.28 years of fcf income to pay off all of its debts.
THG has a Debt to FCF ratio of 1.28. This is in the better half of the industry: THG outperforms 65.07% of its industry peers.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | N/A |
ROIC/WACC0.51
WACC8.15%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
THG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.24%, which is quite impressive.
The Earnings Per Share has been growing by 10.31% on average over the past years. This is quite good.
THG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
THG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.41% yearly.
EPS 1Y (TTM)67.24%
EPS 3Y15.11%
EPS 5Y10.31%
EPS Q2Q%66.89%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y6.83%
Revenue growth 5Y5.41%
Sales Q2Q%-0.58%
3.2 Future
The Earnings Per Share is expected to grow by 9.79% on average over the next years. This is quite good.
THG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.46% yearly.
EPS Next Y34.42%
EPS Next 2Y12.72%
EPS Next 3Y9.79%
EPS Next 5YN/A
Revenue Next Year4.98%
Revenue Next 2Y5.3%
Revenue Next 3Y5.46%
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 stable.
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
A Price/Earnings ratio of 9.78 indicates a reasonable valuation of THG.
Compared to the rest of the industry, the Price/Earnings ratio of THG indicates a somewhat cheap valuation: THG is cheaper than 60.96% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, THG is valued rather cheaply.
The Price/Forward Earnings ratio is 10.76, which indicates a very decent valuation of THG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of THG is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, THG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
60.96% of the companies in the same industry are more expensive than THG, based on the Enterprise Value to EBITDA ratio.
THG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. THG is cheaper than 65.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.51 | ||
| EV/EBITDA | 7.79 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of THG may justify a higher PE ratio.
PEG (NY)0.28
PEG (5Y)0.95
EPS Next 2Y12.72%
EPS Next 3Y9.79%
5. Dividend
5.1 Amount
THG has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.46, THG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, THG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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
5.3 Sustainability
THG pays out 20.46% of its income as dividend. This is a sustainable payout ratio.
DP20.46%
EPS Next 2Y12.72%
EPS Next 3Y9.79%
NYSE:THG (11/14/2025, 2:15:50 PM)
182.27
+0.04 (+0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change-0.7%
Ins Owners0.86%
Ins Owner Change0.54%
Market Cap6.52B
Revenue(TTM)6.50B
Net Income(TTM)631.90M
Analysts78.18
Price Target202.83 (11.28%)
Short Float %1.86%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend3.46
Dividend Growth(5Y)-18.55%
DP20.46%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)0.94%
PT rev (3m)1.46%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)1.93%
EPS NY rev (1m)7.68%
EPS NY rev (3m)19.52%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 10.76 | ||
| P/S | 1 | ||
| P/FCF | 6.51 | ||
| P/OCF | 6.45 | ||
| P/B | 1.9 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)18.63
EY10.22%
EPS(NY)16.94
Fwd EY9.29%
FCF(TTM)28.01
FCFY15.37%
OCF(TTM)28.27
OCFY15.51%
SpS181.66
BVpS95.79
TBVpS90.79
PEG (NY)0.28
PEG (5Y)0.95
Graham Number200.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 18.44% | ||
| ROCE | 5.28% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.37% | ||
| ROICexgc | 5.31% | ||
| OM | 12.71% | ||
| PM (TTM) | 9.72% | ||
| GM | N/A | ||
| FCFM | 15.42% |
ROA(3y)1.29%
ROA(5y)1.89%
ROE(3y)7.13%
ROE(5y)9.18%
ROIC(3y)1.75%
ROIC(5y)2.21%
ROICexc(3y)1.8%
ROICexc(5y)2.25%
ROICexgc(3y)2.25%
ROICexgc(5y)2.82%
ROCE(3y)2.19%
ROCE(5y)2.75%
ROICexgc growth 3Y5.67%
ROICexgc growth 5Y0.09%
ROICexc growth 3Y6.4%
ROICexc growth 5Y0.53%
OM growth 3Y1.9%
OM growth 5Y-0.99%
PM growth 3Y-5.85%
PM growth 5Y-5.09%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.28 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 633.33% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.26% | ||
| Profit Quality | 158.54% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.15%
ROIC/WACC0.51
Cap/Depr(3y)335.62%
Cap/Depr(5y)227.22%
Cap/Sales(3y)0.23%
Cap/Sales(5y)0.23%
Profit Quality(3y)595.01%
Profit Quality(5y)434.59%
High Growth Momentum
Growth
EPS 1Y (TTM)67.24%
EPS 3Y15.11%
EPS 5Y10.31%
EPS Q2Q%66.89%
EPS Next Y34.42%
EPS Next 2Y12.72%
EPS Next 3Y9.79%
EPS Next 5YN/A
Revenue 1Y (TTM)5.45%
Revenue growth 3Y6.83%
Revenue growth 5Y5.41%
Sales Q2Q%-0.58%
Revenue Next Year4.98%
Revenue Next 2Y5.3%
Revenue Next 3Y5.46%
Revenue Next 5YN/A
EBIT growth 1Y68.34%
EBIT growth 3Y8.85%
EBIT growth 5Y4.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y120.71%
FCF growth 3Y-0.83%
FCF growth 5Y6.06%
OCF growth 1Y116.32%
OCF growth 3Y-0.73%
OCF growth 5Y5.86%
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.
What is the valuation status of HANOVER INSURANCE GROUP INC/ (THG) stock?
ChartMill assigns a valuation rating of 7 / 10 to HANOVER INSURANCE GROUP INC/ (THG). This can be considered as Undervalued.
What is the profitability of THG stock?
HANOVER INSURANCE GROUP INC/ (THG) has a profitability rating of 6 / 10.
What is the financial health of HANOVER INSURANCE GROUP INC/ (THG) stock?
The financial health rating of HANOVER INSURANCE GROUP INC/ (THG) is 3 / 10.
What is the expected EPS growth for HANOVER INSURANCE GROUP INC/ (THG) stock?
The Earnings per Share (EPS) of HANOVER INSURANCE GROUP INC/ (THG) is expected to grow by 34.42% in the next year.