NYSE:EIG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


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


Market Performance


7 Day Return

1.0%

NYSE:EIG

-1.5%

US Insurance

-1.0%

US Market


1 Year Return

-2.3%

NYSE:EIG

8.4%

US Insurance

-0.4%

US Market

EIG underperformed the Insurance industry which returned 8.4% over the past year.

EIG underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

EIGIndustryMarket
7 Day1.0%-1.5%-1.0%
30 Day-1.6%-3.1%-3.3%
90 Day2.1%2.3%0.8%
1 Year-0.4%-2.3%11.0%8.4%1.9%-0.4%
3 Year57.3%49.3%44.7%33.9%39.4%30.4%
5 Year113.4%98.2%66.5%46.8%54.2%37.1%

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

Valuation

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

8.45x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Employers Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Employers Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

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

Employers Holdings is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

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

-33.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Employers Holdings's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Employers Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Employers Holdings's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

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 earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Employers Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Employers Holdings performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (36.7% vs 10.9%)

Employers Holdings's earnings growth has exceeded the US Insurance industry average in the past year (36.7% vs 2.6%).


Return on Equity

Employers Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Employers Holdings used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Employers Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Employers Holdings's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Employers Holdings has no debt.

Employers Holdings has no debt compared to 5 years ago when it was 15.8%.

Employers Holdings has no debt, it does not need to be covered by operating cash flow.

Employers Holdings has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Employers Holdings has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

2.09%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Employers Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Employers Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are well covered by earnings (6.1x 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.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Doug Dirks (60yo)

14.3yrs

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

Doug's remuneration is about average for companies of similar size in United States of America.

Doug's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

57yo

Average Age

The tenure for the Employers Holdings management team is about average.


Board Age and Tenure

4.9yrs

Average Tenure

60.5yo

Average Age

The tenure for the Employers Holdings board of directors is about average.


Insider Trading

Employers Holdings individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellUS$25,02730 May 19
Lawrence Rogers
EntityIndividual
Shares607
Max PriceUS$41.23
SellUS$60,30808 Mar 19
Lawrence Rogers
EntityIndividual
Shares1,495
Max PriceUS$40.34
SellUS$418,00006 Mar 19
Valerie Glenn
EntityIndividual
Role
Member of the Board of Directors
Shares10,000
Max PriceUS$41.80
SellUS$49,94314 Nov 18
Lawrence Rogers
EntityIndividual
Shares1,100
Max PriceUS$45.40

Ownership Breakdown


Management Team

  • Stephen Festa (59yo)

    Executive VP & COO

    • Tenure: 6.0yrs
    • Compensation: $1.76m
  • Dennis Dix

    Senior Vice President of Operations Innovation

    • Tenure: 1.3yrs
  • Doug Dirks (60yo)

    President

    • Tenure: 14.3yrs
    • Compensation: $3.85m
  • Lori Brown (53yo)

    Executive VP

    • Tenure: 0.6yrs
  • Mike Paquette (55yo)

    Executive VP

    • Tenure: 2.6yrs
    • Compensation: $1.39m
  • Ray Wise

    Senior VP & Chief Sales Officer

    • Tenure: 2.8yrs
  • John Nelson (57yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 12.5yrs
    • Compensation: $1.21m
  • Matthew Hendricksen

    Vice President of Treasury & Investments

    • Tenure: 3.0yrs
  • Ty Vukelich

    Vice President of Corporate Marketing

  • Jeffrey Shaw

    Senior VP & Chief Information Officer

    • Tenure: 1.8yrs

Board Members

  • Prasanna Dhoré (58yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: $133.31k
  • Barbara Higgins (52yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: $124.55k
  • Jeanne Mockard (55yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: $127.24k
  • Mike Rumbolz (65yo)

    Chairman of the Board

    • Tenure: 3.2yrs
    • Compensation: $135.13k
  • Mike McSally (61yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: $138.06k
  • Mike McColgan (63yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: $130.10k
  • Doug Dirks (60yo)

    President

    • Tenure: 14.3yrs
    • Compensation: $3.85m
  • Richard Blakey (69yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: $132.94k
  • Jim Kroner (57yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: $131.99k
  • Valerie Glenn (64yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: $139.35k

Company Information

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


Key Information

  • Name: Employers Holdings, Inc.
  • Ticker: EIG
  • Exchange: NYSE
  • Founded: 2000
  • Industry: property and casualty insurance
  • Sector: insurance
  • Market Cap: US$1.373b
  • Shares outstanding: 31.92m
  • Website: Click here

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 bu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 00:16
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.