Employers Holdings
Market Cap
US$951.0m
Last Updated
2021/01/20 00:11 UTC
Data Sources
Company Financials +
Executive Summary
Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 9.1% per year for the next 3 years
Snowflake Analysis
Undervalued established dividend payer.
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: EIG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: EIG's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-3.2%
EIG
0.4%
US Insurance
0.3%
US Market
1 Year Return
-25.3%
EIG
-3.2%
US Insurance
21.1%
US Market
Return vs Industry: EIG underperformed the US Insurance industry which returned -4.7% over the past year.
Return vs Market: EIG underperformed the US Market which returned 19.5% over the past year.
Shareholder returns
| EIG | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.2% | 0.4% | 0.3% |
| 30 Day | 1.8% | 3.7% | 3.3% |
| 90 Day | -0.5% | 15.4% | 14.2% |
| 1 Year | -23.0%-25.3% | -0.4%-3.2% | 23.8%21.1% |
| 3 Year | -19.4%-24.8% | 12.7%4.1% | 45.0%35.4% |
| 5 Year | 47.3%33.8% | 74.6%52.5% | 127.7%102.3% |
Long-Term 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
2 weeks ago | Simply Wall St
What Kind Of Investors Own Most Of Employers Holdings, Inc. (NYSE:EIG)?1 month ago | Simply Wall St
How Much Did Employers Holdings'(NYSE:EIG) Shareholders Earn From Share Price Movements Over The Last Three Years?2 months ago | Simply Wall St
Is Employers Holdings, Inc. (NYSE:EIG) A Good Fit For Your Dividend Portfolio?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: EIG ($32.77) is trading below our estimate of fair value ($83.25)
Significantly Below Fair Value: EIG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EIG is good value based on its PE Ratio (11.5x) compared to the US Insurance industry average (14.4x).
PE vs Market: EIG is good value based on its PE Ratio (11.5x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: EIG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: EIG is good value based on its PB Ratio (0.8x) compared to the US Insurance industry average (1x).
Next Steps
Future Growth
How is Employers Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
-9.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EIG's earnings are forecast to decline over the next 3 years (-9.1% per year).
Earnings vs Market: EIG's earnings are forecast to decline over the next 3 years (-9.1% per year).
High Growth Earnings: EIG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: EIG's revenue is expected to decline over the next 3 years (-2.8% per year).
High Growth Revenue: EIG's revenue is forecast to decline over the next 3 years (-2.8% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EIG's Return on Equity is forecast to be low in 3 years time (5.4%).
Next Steps
Past Performance
How has Employers Holdings performed over the past 5 years?
4.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EIG has high quality earnings.
Growing Profit Margin: EIG's current net profit margins (12%) are lower than last year (18.8%).
Past Earnings Growth Analysis
Earnings Trend: EIG's earnings have grown by 4.8% per year over the past 5 years.
Accelerating Growth: EIG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EIG had negative earnings growth (-42.1%) over the past year, making it difficult to compare to the Insurance industry average (5.9%).
Return on Equity
High ROE: EIG's Return on Equity (7.5%) is considered low.
Next Steps
Financial Health
How is Employers Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: EIG's short term assets ($1.1B) exceed its short term liabilities ($770.7M).
Long Term Liabilities: EIG's short term assets ($1.1B) do not cover its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: EIG's debt to equity ratio (3%) is considered satisfactory.
Reducing Debt: EIG's debt to equity ratio has reduced from 12.2% to 3% over the past 5 years.
Debt Coverage: EIG's debt is well covered by operating cash flow (166%).
Interest Coverage: Insufficient data to determine if EIG's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is Employers Holdings's current dividend yield, its reliability and sustainability?
3.05%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EIG's dividend (3.05%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: EIG's dividend (3.05%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: EIG's dividends per share have been stable in the past 10 years.
Growing Dividend: EIG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34%), EIG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: EIG's dividends in 3 years are forecast to be covered by earnings (57.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.1yrs
Average management tenure
CEO
Doug Dirks (61 yo)
15.75yrs
Tenure
US$4,758,977
Compensation
Mr. Douglas Dean Dirks, also known as Doug serves as President and Chief Executive Officer of Employers Holdings, Inc. since April 2005. Mr. Dirks has been the Chief Executive Officer of Employer of Nevas ...
CEO Compensation Analysis
Compensation vs Market: Doug's total compensation ($USD4.76M) is above average for companies of similar size in the US market ($USD2.40M).
Compensation vs Earnings: Doug's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 15.75yrs | US$4.76m | 1.55% $ 14.8m | |
| Executive VP & CFO | 4yrs | US$1.57m | 0.083% $ 788.2k | |
| Executive VP & COO | 7.42yrs | US$2.13m | 0.32% $ 3.0m | |
| Executive VP | 2yrs | US$1.20m | 0.070% $ 662.1k | |
| Executive VP & Chief Innovation Officer | 4yrs | US$1.64m | 0.045% $ 424.3k | |
| Vice President of Treasury & Investments | 5yrs | no data | no data | |
| Executive VP & Chief Information Officer | 3.17yrs | no data | 0.0030% $ 28.9k | |
| Vice President of Corporate Marketing | no data | no data | no data | |
| Senior VP & Chief Sales Officer | 4.17yrs | no data | 0.014% $ 128.8k | |
| Senior VP & Chief Human Resources Officer | no data | no data | 0.0011% $ 10.2k | |
| Senior Vice President of Operations Innovation | 2.75yrs | no data | no data | |
| Senior VP & Chief Claims Officer | 6.75yrs | no data | 0.043% $ 406.8k |
4.1yrs
Average Tenure
54yo
Average Age
Experienced Management: EIG's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 15.75yrs | US$4.76m | 1.55% $ 14.8m | |
| Independent Director | 7.33yrs | US$151.48k | 0.074% $ 703.8k | |
| Independent Chairman of the Board | no data | US$151.80k | 0.096% $ 913.1k | |
| Independent Director | 2.83yrs | US$137.48k | 0.015% $ 140.7k | |
| Independent Director | 14.75yrs | US$150.56k | 0.18% $ 1.7m | |
| Independent Director | 15.75yrs | US$149.85k | 0.21% $ 2.0m | |
| Independent Director | 2.83yrs | US$133.95k | 0.012% $ 115.7k | |
| Independent Director | 5.25yrs | US$147.65k | 0.028% $ 264.7k | |
| Independent Director | 3.5yrs | US$144.18k | 0.015% $ 144.7k | |
| Independent Director | 1.75yrs | US$124.40k | 0.0094% $ 89.6k |
5.3yrs
Average Tenure
60yo
Average Age
Experienced Board: EIG's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EIG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$951.022m
- Shares outstanding: 29.02m
- Website: https://www.employers.com
Number of Employees
Location
- Employers Holdings, Inc.
- 10375 Professional Circle
- Reno
- Nevada
- 89521
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EIG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 2007 |
| YGB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 00:11 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.