DB:YGB

Stock Analysis Report

Employers Holdings

Executive Summary

Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States.

Rewards

Trading at 62.7% below its fair value

Earnings have grown 11.8% per year over the past 5 years

Pays a high and reliable dividend of 2.1%

Risk Analysis

Earnings are forecast to decline by an average of -27% per year for the next 3 years



Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Employers Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: YGB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

YGB

0.9%

DE Insurance

0.3%

DE Market


1 Year Return

4.7%

YGB

26.9%

DE Insurance

13.8%

DE Market

Return vs Industry: YGB underperformed the German Insurance industry which returned 29.2% over the past year.

Return vs Market: YGB underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

YGBIndustryMarket
7 Day0%0.9%0.3%
30 Day1.5%1.2%1.7%
90 Day7.1%4.3%5.7%
1 Year6.9%4.7%32.5%26.9%17.4%13.8%
3 Year18.7%12.4%63.6%43.8%15.9%5.7%
5 Year125.9%109.3%98.0%58.5%27.9%10.6%

Price Volatility Vs. Market

How volatile is Employers Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Employers Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: YGB (€38) is trading below our estimate of fair value (€101.87)

Significantly Below Fair Value: YGB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: YGB is good value based on its PE Ratio (9x) compared to the Insurance industry average (11.9x).

PE vs Market: YGB is good value based on its PE Ratio (9x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: YGB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: YGB is overvalued based on its PB Ratio (1.2x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Employers Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YGB's earnings are forecast to decline over the next 3 years (-27% per year).

Earnings vs Market: YGB's earnings are forecast to decline over the next 3 years (-27% per year).

High Growth Earnings: YGB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: YGB's revenue is expected to decline over the next 3 years (-4.2% per year).

High Growth Revenue: YGB's revenue is forecast to decline over the next 3 years (-4.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: YGB's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has Employers Holdings performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YGB has high quality earnings.

Growing Profit Margin: YGB's current net profit margins (18.8%) are higher than last year (17.9%).


Past Earnings Growth Analysis

Earnings Trend: YGB's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: YGB's earnings growth over the past year (2.7%) is below its 5-year average (11.8% per year).

Earnings vs Industry: YGB earnings growth over the past year (2.7%) underperformed the Insurance industry 7.8%.


Return on Equity

High ROE: YGB's Return on Equity (13%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Employers Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: YGB has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if YGB's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: YGB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if YGB has a sufficient allowance for bad loans.

Low Risk Liabilities: YGB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if YGB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: YGB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if YGB has an appropriate level of bad loans.


Next Steps

Dividend

What is Employers Holdings's current dividend yield, its reliability and sustainability?

2.05%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: YGB's dividend (2.1%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: YGB's dividend (2.1%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: YGB's dividends per share have been stable in the past 10 years.

Growing Dividend: YGB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.4%), YGB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: YGB's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

Management

What is the CEO of Employers Holdings's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Doug Dirks (60yo)

14.8yrs

Tenure

US$3,845,231

Compensation

Mr. Douglas Dean Dirks, also known as Doug has been the President and Chief Executive Officer of Employers Holdings, Inc. since April 2005. Mr. Dirks has been the Chief Executive Officer of Employer of Nev ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD3.85M) is above average for companies of similar size in the German market ($USD1.50M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

57yo

Average Age

Experienced Management: YGB's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: YGB's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: YGB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€13,89730 Oct 19
Lawrence Rogers
EntityIndividual
Shares363
Max Price€38.29
Sell€22,47630 May 19
Lawrence Rogers
EntityIndividual
Shares607
Max Price€37.03
Sell€53,63808 Mar 19
Lawrence Rogers
EntityIndividual
Shares1,495
Max Price€35.88
Sell€369,21906 Mar 19
Valerie Glenn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max Price€36.92

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mike Paquette (55yo)

    Executive VP & CFO

    • Tenure: 3yrs
    • Compensation: US$1.39m
  • Doug Dirks (60yo)

    President

    • Tenure: 14.8yrs
    • Compensation: US$3.85m
  • Stephen Festa (59yo)

    Executive VP & COO

    • Tenure: 6.4yrs
    • Compensation: US$1.76m
  • Ty Vukelich

    Vice President of Corporate Marketing

    • Dennis Dix

      Senior Vice President of Operations Innovation

      • Tenure: 1.8yrs
    • Ray Wise

      Senior VP & Chief Sales Officer

      • Tenure: 3.2yrs
    • Barry Vogt

      Senior VP & Chief Claims Officer

      • Tenure: 5.8yrs
    • Lori Brown (53yo)

      Executive VP

      • Tenure: 1yrs
    • Matthew Hendricksen

      Vice President of Treasury & Investments

      • Tenure: 4yrs
    • Jeffrey Shaw

      Executive VP & Chief Information Officer

      • Tenure: 2.2yrs

    Board Members

    • Jim Kroner (57yo)

      Independent Director

      • Tenure: 6.3yrs
      • Compensation: US$131.99k
    • Mike Rumbolz (65yo)

      Independent Chairman of the Board

      • Tenure: 3.6yrs
      • Compensation: US$135.13k
    • Doug Dirks (60yo)

      President

      • Tenure: 14.8yrs
      • Compensation: US$3.85m
    • Mike McSally (61yo)

      Independent Director

      • Tenure: 6.3yrs
      • Compensation: US$138.06k
    • Jeanne Mockard (55yo)

      Independent Director

      • Tenure: 1.8yrs
      • Compensation: US$127.24k
    • Valerie Glenn (64yo)

      Independent Director

      • Tenure: 13.8yrs
      • Compensation: US$139.35k
    • Richard Blakey (69yo)

      Independent Director

      • Tenure: 14.8yrs
      • Compensation: US$132.94k
    • Barbara Higgins (52yo)

      Independent Director

      • Tenure: 1.8yrs
      • Compensation: US$124.55k
    • Prasanna Dhoré (58yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$133.31k
    • Mike McColgan (63yo)

      Independent Director

      • Tenure: 2.5yrs
      • Compensation: US$130.10k

    Company Information

    Employers Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Employers Holdings, Inc.
    • Ticker: YGB
    • Exchange: DB
    • Founded: 2000
    • Industry: Property and Casualty Insurance
    • Sector: Insurance
    • Market Cap: US$1.385b
    • Listing Market Cap: US$1.256b
    • Shares outstanding: 31.81m
    • Website: https://www.employers.com

    Number of Employees


    Location

    • Employers Holdings, Inc.
    • 10375 Professional Circle
    • Reno
    • Nevada
    • 89521
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    EIGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2007
    YGBDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2007

    Biography

    Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. It offers workers' compensation insurance to small businesses in low to medium hazard industries. The company markets its products through independent local, regional, and national agents and brokers; alternative distribution channels comprising its partners; and through national, regional, and local trade groups and associations, as well as directly to customers. Employers Holdings, Inc. was founded in 2000 and is based in Reno, Nevada. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 22:13
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.