Loading...

Employers Holdings

NYSE:EIG
Snowflake Description

Excellent balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EIG
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. The last earnings update was 85 days ago. More info.


Add to Portfolio Compare Print
EIG Share Price and Events
7 Day Returns
1%
NYSE:EIG
-0.7%
US Insurance
-0.3%
US Market
1 Year Returns
4.4%
NYSE:EIG
13.4%
US Insurance
3.4%
US Market
EIG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Employers Holdings (EIG) 1% 5.5% 7.5% 4.4% 41.2% 119.3%
US Insurance -0.7% 2.6% 8.8% 13.4% 38.5% 50.1%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • EIG underperformed the Insurance industry which returned 13.4% over the past year.
  • EIG outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
EIG
Industry
5yr Volatility vs Market

Value

 Is Employers Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Employers Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Employers Holdings.

NYSE:EIG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $37.00 * 11.6%
$4.28
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $37.00
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:EIG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.684 (1 + (1- 21%) (2.81%))
0.798
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:EIG using Excess Returns Model Model

The calculations below outline how an intrinsic value for Employers Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:EIG Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.6% – 7.5%) * $37.00)
$1.51
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $1.51 / (7.5% - 2.73%)
$31.59
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $37.00 + $31.59
$68.59
NYSE:EIG Discount to Share Price
Calculation Result
Value per share (USD) From above. $68.59
Current discount Discount to share price of $44.15
= -1 x ($44.15 - $68.59) / $68.59
35.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Employers Holdings is available for.
Intrinsic value
36%
Share price is $44.15 vs Future cash flow value of $68.59
Current Discount Checks
For Employers Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Employers Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Employers Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Employers Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Employers Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:EIG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.11
NYSE:EIG Share Price ** NYSE (2019-07-18) in USD $44.15
United States of America Insurance Industry PE Ratio Median Figure of 89 Publicly-Listed Insurance Companies 17.55x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Employers Holdings.

NYSE:EIG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:EIG Share Price ÷ EPS (both in USD)

= 44.15 ÷ 5.11

8.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Employers Holdings is good value based on earnings compared to the US Insurance industry average.
  • Employers Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Employers Holdings's expected growth come at a high price?
Raw Data
NYSE:EIG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-29.8%per year
United States of America Insurance Industry PEG Ratio Median Figure of 62 Publicly-Listed Insurance Companies 1.83x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:EIG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.64x ÷ -29.8%

-0.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Employers Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Employers Holdings's assets?
Raw Data
NYSE:EIG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $33.22
NYSE:EIG Share Price * NYSE (2019-07-18) in USD $44.15
United States of America Insurance Industry PB Ratio Median Figure of 118 Publicly-Listed Insurance Companies 1.24x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NYSE:EIG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:EIG Share Price ÷ Book Value per Share (both in USD)

= 44.15 ÷ 33.22

1.33x

* Primary Listing of Employers Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Employers Holdings is overvalued based on assets compared to the US Insurance industry average.
X
Value checks
We assess Employers Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Employers Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-29.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Employers Holdings expected to grow at an attractive rate?
  • Employers Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Employers Holdings's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Employers Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:EIG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:EIG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -29.8%
NYSE:EIG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 0.3%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 8.8%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:EIG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:EIG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 837 73 89 3
2019-12-31 834 79 110 3
NYSE:EIG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 833 154 168
2018-12-31 800 180 141
2018-09-30 822 172 147
2018-06-30 804 186 121
2018-03-31 791 158 104
2017-12-31 799 142 101
2017-09-30 792 130 105
2017-06-30 773 123 106
2017-03-31 784 132 108
2016-12-31 780 123 107
2016-09-30 771 119 98
2016-06-30 778 96 100

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Employers Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Employers Holdings's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:EIG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Employers Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EIG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 3.03 3.06 3.00 2.00
2019-12-31 3.57 3.77 3.37 2.00
NYSE:EIG Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.11
2018-12-31 4.30
2018-09-30 4.48
2018-06-30 3.71
2018-03-31 3.18
2017-12-31 3.11
2017-09-30 3.25
2017-06-30 3.28
2017-03-31 3.34
2016-12-31 3.29
2016-09-30 3.02
2016-06-30 3.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Employers Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Employers Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Employers Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Employers Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Employers Holdings's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Employers Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • Employers Holdings's 1-year earnings growth exceeds its 5-year average (61.7% vs 10.6%)
  • Employers Holdings's earnings growth has exceeded the US Insurance industry average in the past year (61.7% vs 9.2%).
Earnings and Revenue History
Employers Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Employers Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EIG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 832.70 167.50
2018-12-31 800.40 141.30
2018-09-30 822.00 147.00
2018-06-30 803.90 121.30
2018-03-31 791.00 103.60
2017-12-31 799.30 101.20
2017-09-30 791.50 105.40
2017-06-30 773.40 106.10
2017-03-31 784.10 108.10
2016-12-31 779.80 106.70
2016-09-30 771.10 97.90
2016-06-30 777.80 99.80
2016-03-31 766.90 102.20
2015-12-31 752.10 94.40
2015-09-30 760.20 96.80
2015-06-30 752.80 87.50
2015-03-31 762.20 103.90
2014-12-31 773.50 100.70
2014-09-30 773.26 85.76
2014-06-30 764.50 98.15
2014-03-31 745.80 67.13
2013-12-31 723.50 63.80
2013-09-30 690.80 137.43
2013-06-30 658.61 117.61
2013-03-31 615.32 108.04
2012-12-31 579.18 106.89
2012-09-30 558.02 39.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Employers Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Employers Holdings used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.
  • Employers Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Employers Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Employers Holdings has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Employers Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Employers Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Employers Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Employers Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Employers Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 48.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Employers Holdings Company Filings, last reported 3 months ago.

NYSE:EIG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,071.70 20.00 92.30
2018-12-31 1,018.20 20.00 126.40
2018-09-30 991.20 20.00 203.00
2018-06-30 956.50 20.00 146.30
2018-03-31 930.30 20.00 91.20
2017-12-31 947.70 20.00 77.30
2017-09-30 917.10 20.00 74.90
2017-06-30 899.20 20.00 48.10
2017-03-31 867.50 32.00 74.00
2016-12-31 840.60 32.00 83.20
2016-09-30 850.10 32.00 98.10
2016-06-30 845.30 32.00 130.20
2016-03-31 803.70 32.00 70.80
2015-12-31 760.80 32.00 56.60
2015-09-30 726.00 92.00 74.50
2015-06-30 714.50 92.00 83.40
2015-03-31 709.50 92.00 54.60
2014-12-31 686.80 92.00 103.60
2014-09-30 652.59 102.00 59.01
2014-06-30 645.25 102.00 36.96
2014-03-31 587.86 102.00 51.12
2013-12-31 568.70 102.00 34.50
2013-09-30 556.53 112.00 99.82
2013-06-30 521.94 112.00 97.06
2013-03-31 548.08 112.00 130.89
2012-12-31 539.38 112.00 140.66
2012-09-30 473.22 122.00 243.24
  • Employers Holdings's level of debt (1.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (17.8% vs 1.9% today).
  • Debt is well covered by operating cash flow (744.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 127.2x coverage).
X
Financial health checks
We assess Employers Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Employers Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.99%
Current annual income from Employers Holdings dividends. Estimated to be 2.04% next year.
If you bought $2,000 of Employers Holdings shares you are expected to receive $40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Employers Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Employers Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:EIG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:EIG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.92 2.00
2019-12-31 0.88 2.00
NYSE:EIG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.880 2.067
2019-04-24 0.880 2.055
2019-02-28 0.880 2.163
2019-02-20 0.880 2.069
2018-10-25 0.800 1.831
2018-10-24 0.800 1.888
2018-07-26 0.800 1.797
2018-07-25 0.800 1.812
2018-02-21 0.800 1.966
2017-10-25 0.600 1.332
2017-07-27 0.600 1.383
2017-07-26 0.600 1.383
2017-04-27 0.600 1.446
2017-04-26 0.600 1.504
2017-02-24 0.600 1.586
2017-02-22 0.600 1.566
2016-10-27 0.360 0.999
2016-10-26 0.360 1.160
2016-07-28 0.360 1.215
2016-07-27 0.360 1.170
2016-04-28 0.360 1.213
2016-04-27 0.360 1.238
2016-02-19 0.360 1.285
2016-02-17 0.360 1.301
2015-07-29 0.240 0.979
2015-04-30 0.240 1.034
2015-04-29 0.240 0.949
2014-10-29 0.240 1.042
2014-07-30 0.240 1.176
2014-04-30 0.240 1.132
2014-02-19 0.240 1.196
2013-11-06 0.240 0.842
2013-05-08 0.240 0.889
2013-02-27 0.240 1.068
2012-11-07 0.240 1.182
2012-08-07 0.240 1.305
2012-05-08 0.240 1.376
2012-02-27 0.240 1.399
2011-11-02 0.240 1.362
2011-08-03 0.240 1.861
2011-05-04 0.240 1.502
2011-02-23 0.240 1.203
2010-11-03 0.240 1.411
2010-05-05 0.240 1.551
2010-02-24 0.240 1.567
2009-11-04 0.240 1.667
2009-08-06 0.240 1.579
2009-05-06 0.240 1.915
2009-02-25 0.240 2.546
2008-11-06 0.240 1.716
2008-08-07 0.240 1.584

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Employers Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Employers Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Employers Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Employers Holdings has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Doug Dirks
COMPENSATION $3,845,231
AGE 60
TENURE AS CEO 14.3 years
CEO Bio

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 Nevas Insurance Company, a subsidiary of Employers Holdings, Inc. since January 2006. He has been Chief Executive Officer of EPIC; EAC; EIG; EIG Services Inc. since November 2008. He was Chief Executive Officer of AmSERV Inc. and Pinnacle Benefits, Inc., since November 2008 to June 2013. He has been Chief Executive Officer of Employers Insurance Company of Nevada and ECIC since January 2006. Mr. Dirks has been President and Chief Executive Officer of EOH and EIS since 2002. He has been President of ECIN, ECIC, EPIC and EAC since February 1, 2011. He has been President and Chief Executive Officer of Employers Group, Inc. since April 1, 2005. He served as the Chief Executive Officer at AmCOMP Incorporated. He served as Chief Executive Officer and President of EICN from January 1, 2000 to January 2006. He served as President of Employers Group. He served as Chief Executive Officer and President of ECIC and its predecessor from May 2002 to January 2006. . Mr. Dirks has served as President and Chief Executive Officer of Elite Insurance Services, Inc. (“EIS”) since 2002 and Employers Occupational Health, Inc. ("EOH") from 2002 to January 2014 when it merged into EIG Services, Inc. He serves as a Director of EPIC, EAC, EIG Services, Inc. since November 2008. He was Director at Pinnacle Benefits, Inc. and AmSERV, Inc. from November 2008 to June 2013. Mr. Dirks served in senior insurance regulatory positions and served as an Advisor to the Nevada governor's office. He served in the public accounting and investment banking industries. He has been a Director of EIG and Employers Group, Inc. since April 2005, EICN since December 1999, EIS since August 1999 and ECIC since May 2002. He was Director at EOH from 2000 to January 2014. He serves as a Director at NCCI Holdings, Inc. He has been a Director at Employers Holdings, Inc. and EGI since April 2005. He serves on the Board of Directors of the Nevada Insurance Guaranty Association and the Nevada Insurance Education Foundation. He served as a Director of AmCOMP Incorporated. He is a licensed Certified Public Accountant in the state of Texas. Mr. Dirks holds B.A. and M.B.A. degrees from the University of Texas and a J.D. degree from the University of South Dakota.

CEO Compensation
  • Doug's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Doug's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Employers Holdings management team in years:

2.7
Average Tenure
57
Average Age
  • The tenure for the Employers Holdings management team is about average.
Management Team

Doug Dirks

TITLE
President
COMPENSATION
$4M
AGE
60
TENURE
14.3 yrs

Mike Paquette

TITLE
Executive VP
COMPENSATION
$1M
AGE
55
TENURE
2.5 yrs

Stephen Festa

TITLE
Executive VP & COO
COMPENSATION
$2M
AGE
59
TENURE
5.9 yrs

John Nelson

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
$1M
AGE
57
TENURE
12.4 yrs

Matthew Hendricksen

TITLE
Vice President of Treasury & Investments
TENURE
2.9 yrs

Jeffrey Shaw

TITLE
Senior VP & Chief Information Officer
TENURE
1.7 yrs

Lori Brown

TITLE
Executive VP
AGE
53
TENURE
0.5 yrs

Ty Vukelich

TITLE
Vice President of Corporate Marketing

Ray Wise

TITLE
Senior VP & Chief Sales Officer
TENURE
2.7 yrs

Dennis Dix

TITLE
Senior Vice President of Operations Innovation
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Employers Holdings board of directors in years:

4.8
Average Tenure
60.5
Average Age
  • The tenure for the Employers Holdings board of directors is about average.
Board of Directors

Mike Rumbolz

TITLE
Chairman of the Board
COMPENSATION
$135K
AGE
65
TENURE
3.1 yrs

Doug Dirks

TITLE
President
COMPENSATION
$4M
AGE
60
TENURE
14.3 yrs

Valerie Glenn

TITLE
Independent Director
COMPENSATION
$139K
AGE
64
TENURE
13.3 yrs

Richard Blakey

TITLE
Independent Director
COMPENSATION
$133K
AGE
69
TENURE
14.3 yrs

Jim Kroner

TITLE
Independent Director
COMPENSATION
$132K
AGE
57
TENURE
5.8 yrs

Mike McSally

TITLE
Independent Director
COMPENSATION
$138K
AGE
61
TENURE
5.8 yrs

Prasanna Dhoré

TITLE
Independent Director
COMPENSATION
$133K
AGE
58
TENURE
3.8 yrs

Mike McColgan

TITLE
Independent Director
COMPENSATION
$130K
AGE
63
TENURE
2 yrs

Barbara Higgins

TITLE
Independent Director
COMPENSATION
$125K
AGE
52
TENURE
1.3 yrs

Jeanne Mockard

TITLE
Independent Director
COMPENSATION
$127K
AGE
55
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • Employers Holdings individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. May 19 Sell Lawrence Rogers Individual 30. May 19 30. May 19 -607 $41.23 $-25,027
08. Mar 19 Sell Lawrence Rogers Individual 08. Mar 19 08. Mar 19 -1,495 $40.34 $-60,308
06. Mar 19 Sell Valerie Glenn Individual 04. Mar 19 04. Mar 19 -10,000 $41.80 $-418,000
14. Nov 18 Sell Lawrence Rogers Individual 14. Nov 18 14. Nov 18 -1,100 $45.40 $-49,943
X
Management checks
We assess Employers Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Employers Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Do Institutions Own Employers Holdings, Inc. (NYSE:EIG) Shares?

Check out our latest analysis for Employers Holdings NYSE:EIG Ownership Summary, July 10th 2019 What Does The Institutional Ownership Tell Us About Employers Holdings? … Insider Ownership Of Employers Holdings The definition of an insider can differ slightly between different countries, but members of the board of directors always count. … Shareholders would probably be interested to learn that insiders own shares in Employers Holdings, Inc..

Simply Wall St -

Is Employers Holdings (NYSE:EIG) A Risky Investment?

NYSE:EIG Historical Debt, June 17th 2019 A Look At Employers Holdings's Liabilities The latest balance sheet data shows that Employers Holdings had liabilities of US$833.7m due within a year, and liabilities of US$2.07b falling due after that. … While Employers Holdings has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … Over the last three years, Employers Holdings recorded free cash flow worth a fulsome 83% of its EBIT, which is stronger than we'd usually expect.

Simply Wall St -

Is Employers Holdings, Inc.'s (NYSE:EIG) CEO Overpaid Relative To Its Peers?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for Employers Holdings How Does Doug Dirks's Compensation Compare With Similar Sized Companies? … Boasting a total shareholder return of 50% over three years, Employers Holdings, Inc.

Simply Wall St -

A Closer Look At Employers Holdings, Inc.'s (NYSE:EIG) Impressive ROE

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Employers Holdings: 16% = US$168m ÷ US$1.1b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Employers Holdings Have A Good Return On Equity? … Combining Employers Holdings's Debt And Its 16% Return On Equity Employers Holdings has a debt to equity ratio of just 0.037, which is very low.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Employers Holdings, Inc. (NYSE:EIG)

We'll look at Employers Holdings, Inc.'s (NYSE:EIG) P/E ratio and reflect on what it tells us about the company's share price. … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Employers Holdings: P/E of 8.42 = $43.04 ÷ $5.11 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

Is Employers Holdings, Inc. (NYSE:EIG) A Smart Choice For Dividend Investors?

Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. … When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. … Explore this interactive chart for our latest analysis on Employers Holdings!

Simply Wall St -

Do Employers Holdings's (NYSE:EIG) Earnings Warrant Your Attention?

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Employers Holdings (NYSE:EIG). … How Quickly Is Employers Holdings Increasing Earnings Per Share. … I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats).

Simply Wall St -

What Kind Of Shareholder Owns Most Employers Holdings, Inc. (NYSE:EIG) Stock?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We also tend to see lower insider ownership in companies that were previously publicly owned. … It has a market capitalization of US$1.3b, which means it would generally expect to see some institutions on the share registry.

Simply Wall St -

Has Employers Holdings, Inc. (NYSE:EIG) Improved Earnings Growth In Recent Times?

Today I will assess EIG's recent performance announced on 31 December 2018 and compare these figures to its long-term trend and industry movements. … How Did EIG's Recent Performance Stack Up Against Its Past. … EIG's trailing twelve-month earnings (from 31 December 2018) of US$141m has.

Simply Wall St -

Is Employers Holdings's 125% Share Price Increase Well Justified?

One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price. … Over half a decade, Employers Holdings managed to grow its earnings per share at 16% a year. … This EPS growth is reasonably close to the 18% average annual increase in the share price.

Simply Wall St -

Company Info

Description

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.

Details
Name: Employers Holdings, Inc.
EIG
Exchange: NYSE
Founded: 2000
$1,415,114,343
32,052,420
Website: http://www.employers.com
Address: Employers Holdings, Inc.
10375 Professional Circle,
Reno,
Nevada, 89521,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE EIG Common Stock New York Stock Exchange US USD 31. Jan 2007
DB YGB Common Stock Deutsche Boerse AG DE EUR 31. Jan 2007
Number of employees
Current staff
Staff numbers
704
Employers Holdings employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 00:05
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.