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

Solid track record average 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


Market Performance


7 Day Return

1.2%

EIG

0.1%

US Insurance

0.5%

US Market


1 Year Return

-0.02%

EIG

13.8%

US Insurance

6.8%

US Market

Return vs Industry: EIG underperformed the US Insurance industry which returned 13.8% over the past year.

Return vs Market: EIG underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

EIGIndustryMarket
7 Day1.2%0.1%0.5%
30 Day-3.0%-1.8%-0.8%
90 Day-1.0%-1.6%-0.9%
1 Year2.0%-0.02%16.6%13.8%9.2%6.8%
3 Year44.5%37.2%44.6%33.5%45.6%36.2%
5 Year130.5%114.1%69.6%49.4%63.2%45.4%

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?

8.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EIG ($42.4) is trading above our estimate of fair value ($38.9)

Significantly Below Fair Value: EIG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EIG is good value based on its PE Ratio (8.3x) compared to the Insurance industry average (15.6x).

PE vs Market: EIG is good value based on its PE Ratio (8.3x) compared to the US market (17.7x).


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 (1.2x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

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

-36.7%

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 (-36.7% per year).

Earnings vs Market: EIG's earnings are forecast to decline over the next 3 years (-36.7% 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 (-1.8% per year).

High Growth Revenue: EIG's revenue is forecast to decline over the next 3 years (-1.8% 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?

10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EIG's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: EIG's earnings growth over the past year (36.7%) exceeds its 5-year average (10.9% per year).

Earnings vs Industry: EIG earnings growth over the past year (36.7%) exceeded the Insurance industry 1.4%.


Return on Equity

High ROE: EIG's Return on Equity (14.8%) is considered low.


Return on Assets

ROA vs Industry: EIG has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: EIG has significantly improved its Return on Capital Employed over the past 3 years.


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: EIG has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.08%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EIG's dividend (2.08%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: EIG's dividend (2.08%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 low payout ratio (16.5%), 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

Management

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

2.9yrs

Average management tenure


CEO

Doug Dirks (60yo)

14.5yrs

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 ($USD3.85M) is about average for companies of similar size in the US market ($USD4.00M).

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


Management Age and Tenure

2.9yrs

Average Tenure

57yo

Average Age

Experienced Management: EIG's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: EIG's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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
Independent Director
Shares10,000
Max PriceUS$41.80
SellUS$49,94314 Nov 18
Lawrence Rogers
EntityIndividual
Shares1,100
Max PriceUS$45.40

Ownership Breakdown


Management Team

  • Mike Paquette (55yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$1.39m
  • Doug Dirks (60yo)

    President

    • Tenure: 14.5yrs
    • Compensation: US$3.85m
  • Stephen Festa (59yo)

    Executive VP & COO

    • Tenure: 6.2yrs
    • Compensation: US$1.76m
  • John Nelson (57yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 12.7yrs
    • Compensation: US$1.21m
  • Ty Vukelich

    Vice President of Corporate Marketing

    • Tenure: 0yrs
  • Dennis Dix

    Senior Vice President of Operations Innovation

    • Tenure: 1.5yrs
  • Ray Wise

    Senior VP & Chief Sales Officer

    • Tenure: 2.9yrs
  • Lori Brown (53yo)

    Executive VP

    • Tenure: 0.8yrs
  • Matthew Hendricksen

    Vice President of Treasury & Investments

    • Tenure: 3.2yrs
  • Jeffrey Shaw

    Senior VP & Chief Information Officer

    • Tenure: 1.9yrs

Board Members

  • Jim Kroner (57yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$131.99k
  • Mike Rumbolz (65yo)

    Independent Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$135.13k
  • Doug Dirks (60yo)

    President

    • Tenure: 14.5yrs
    • Compensation: US$3.85m
  • Mike McSally (61yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$138.06k
  • Jeanne Mockard (55yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$127.24k
  • Valerie Glenn (64yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$139.35k
  • Richard Blakey (69yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$132.94k
  • Barbara Higgins (52yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$124.55k
  • Prasanna Dhoré (58yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$133.31k
  • Mike McColgan (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • 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: EIG
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$1.353b
  • Shares outstanding: 31.92m
  • 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 Analysis2019/10/20 23:55
End of Day Share Price2019/10/18 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.