NYSE:EIG

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value with adequate balance sheet 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

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


Market Performance


7 Day Return

-0.03%

EIG

-1.4%

US Insurance

-1.5%

US Market


1 Year Return

-31.9%

EIG

-16.2%

US Insurance

12.9%

US Market

Return vs Industry: EIG underperformed the US Insurance industry which returned -15.9% over the past year.

Return vs Market: EIG underperformed the US Market which returned 12.6% over the past year.


Shareholder returns

EIGIndustryMarket
7 Day-0.03%-1.4%-1.5%
30 Day-6.8%0.2%-1.8%
90 Day4.4%3.9%6.6%
1 Year-30.0%-31.9%-13.9%-16.2%15.4%12.9%
3 Year-27.6%-32.2%2.7%-5.2%39.6%30.2%
5 Year48.4%35.5%44.7%26.7%93.4%71.7%

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 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 ($30.73) is trading below our estimate of fair value ($84.68)

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 (10.8x) compared to the US Insurance industry average (14.3x).

PE vs Market: EIG is good value based on its PE Ratio (10.8x) compared to the US market (18.2x).


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's PB Ratio (0.8x) is in line with the US Insurance industry average.


Next Steps

Future Growth

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

-9.9%

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 (-9.9% per year).

Earnings vs Market: EIG's earnings are forecast to decline over the next 3 years (-9.9% 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 (-4.2% per year).

High Growth Revenue: EIG'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: Insufficient data to determine if EIG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Employers Holdings performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EIG has high quality earnings.

Growing Profit Margin: EIG's current net profit margins (11.9%) are lower than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: EIG's earnings have grown by 7.4% 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 (-46.1%) over the past year, making it difficult to compare to the Insurance industry average (-3.3%).


Return on Equity

High ROE: EIG's Return on Equity (7.8%) 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 ($811.6M).

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 (3.1%) is considered satisfactory.

Reducing Debt: EIG's debt to equity ratio has reduced from 12.9% to 3.1% over the past 5 years.

Debt Coverage: EIG's debt is well covered by operating cash flow (311.1%).

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?

3.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EIG's dividend (3.25%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: EIG's dividend (3.25%) is low compared to the top 25% of dividend payers in the US market (4.7%).


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 (33.1%), EIG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

  • Explore strong dividend paying companies in the Insurance industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Doug Dirks (61 yo)

15.42yrs

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 ($USD4.76M) is above average for companies of similar size in the US market ($USD2.96M).

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

NamePositionTenureCompensationOwnership
Douglas Dirks
President15.42yrsUS$4.76m1.54%
$ 13.5m
Michael Paquette
Executive VP & CFO3.67yrsUS$1.57m0.082%
$ 721.3k
Stephen Festa
Executive VP & COO7.08yrsUS$2.13m0.31%
$ 2.8m
Lori Brown
Executive VP1.67yrsUS$1.20m0.069%
$ 605.9k
Tracey Berg
Executive VP & Chief Innovation Officer3.67yrsUS$1.64m0.044%
$ 388.4k
Matthew Hendricksen
Vice President of Treasury & Investments4.67yrsno datano data
Jeffrey Shaw
Executive VP & Chief Information Officer2.83yrsno data0.0030%
$ 26.5k
Ty Vukelich
Vice President of Corporate Marketingno datano datano data
Raymond Wise
Senior VP & Chief Sales Officer3.83yrsno data0.013%
$ 117.9k
John Mutschink
Senior VP & Chief Human Resources Officerno datano data0.0011%
$ 9.3k
Dennis Dix
Senior Vice President of Operations Innovation2.42yrsno datano data
Barry Vogt
Senior VP & Chief Claims Officer6.42yrsno data0.042%
$ 372.3k

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: EIG's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Dirks
President15.42yrsUS$4.76m1.54%
$ 13.5m
James Kroner
Independent Director7yrsUS$151.48k0.062%
$ 548.1k
Michael McSally
Independent Chairman of the Boardno dataUS$151.80k0.078%
$ 685.7k
Jeanne Mockard
Independent Director2.5yrsUS$137.48k0.012%
$ 106.0k
Valerie Glenn
Independent Director14.42yrsUS$150.56k0.18%
$ 1.5m
Richard Blakey
Independent Director15.42yrsUS$149.85k0.20%
$ 1.8m
Barbara Higgins
Independent Director2.5yrsUS$133.95k0.012%
$ 106.0k
Prasanna Dhoré
Independent Director4.92yrsUS$147.65k0.028%
$ 242.2k
Michael McColgan
Independent Director3.17yrsUS$144.18k0.015%
$ 132.4k
João de Figueiredo
Independent Director1.42yrsUS$124.40k0.0066%
$ 57.6k

4.9yrs

Average Tenure

60yo

Average Age

Experienced Board: EIG's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$877.837m
  • Shares outstanding: 29.27m
  • 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 bu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 06:21
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.