THG Stock Overview
The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States.
Hanover Insurance Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$144.67|
|52 Week High||US$155.55|
|52 Week Low||US$121.69|
|1 Month Change||-2.40%|
|3 Month Change||-4.16%|
|1 Year Change||6.32%|
|3 Year Change||12.87%|
|5 Year Change||61.41%|
|Change since IPO||496.58%|
Recent News & Updates
Hanover Insurance: Potential For Rebound Given Continued Premium Growth
Hanover Insurance Group has seen a decline in the past couple of months, albeit less than the broader market. Despite strong performance across the US private auto segment, the company faces higher catastrophic loss risks across its commercial lines. However, premium growth for commercial insurance is still slightly higher than that of personal insurance. The stock could see significant rebound if premium demand growth continues and the broader market sees a resurgence in risk appetite.
|THG||US Insurance||US Market|
Return vs Industry: THG exceeded the US Insurance industry which returned 2.8% over the past year.
Return vs Market: THG exceeded the US Market which returned -18.8% over the past year.
|THG Average Weekly Movement||3.5%|
|Insurance Industry Average Movement||5.0%|
|Market Average Movement||8.0%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: THG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: THG's weekly volatility (4%) has been stable over the past year.
About the Company
The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through three segments: Commercial Lines, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, and workers’ compensation insurance products, as well as management and professional liability, marine, specialty industrial and commercial property, monoline general liability, surety, umbrella, fidelity, crime, and other commercial coverages.
Hanover Insurance Group Fundamentals Summary
|THG fundamental statistics|
Is THG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|THG income statement (TTM)|
|Cost of Revenue||US$4.15b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Aug 02, 2022
|Earnings per share (EPS)||12.15|
|Net Profit Margin||8.20%|
How did THG perform over the long term?See historical performance and comparison
2.1%Current Dividend Yield
Is THG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for THG?
Other financial metrics that can be useful for relative valuation.
|What is THG's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does THG's PE Ratio compare to its peers?
|THG PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
AXS AXIS Capital Holdings
SIGI Selective Insurance Group
FAF First American Financial
THG Hanover Insurance Group
Price-To-Earnings vs Peers: THG is good value based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (12.2x).
Price to Earnings Ratio vs Industry
How does THG's PE Ratio compare vs other companies in the US Insurance Industry?
Price-To-Earnings vs Industry: THG is good value based on its Price-To-Earnings Ratio (11.9x) compared to the US Insurance industry average (12x)
Price to Earnings Ratio vs Fair Ratio
What is THG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||11.9x|
|Fair PE Ratio||10.7x|
Price-To-Earnings vs Fair Ratio: THG is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.7x).
Share Price vs Fair Value
What is the Fair Price of THG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: THG ($144.67) is trading below our estimate of fair value ($280.01)
Significantly Below Fair Value: THG is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: THG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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How is Hanover Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: THG's earnings are forecast to decline over the next 3 years (-0.03% per year).
Earnings vs Market: THG's earnings are forecast to decline over the next 3 years (-0.03% per year).
High Growth Earnings: THG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: THG's revenue (3.1% per year) is forecast to grow slower than the US market (8.3% per year).
High Growth Revenue: THG's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if THG's Return on Equity is forecast to be high in 3 years time
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How has Hanover Insurance Group performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: THG has high quality earnings.
Growing Profit Margin: THG's current net profit margins (8.2%) are lower than last year (9.8%).
Past Earnings Growth Analysis
Earnings Trend: THG's earnings have grown significantly by 20.2% per year over the past 5 years.
Accelerating Growth: THG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: THG had negative earnings growth (-12.4%) over the past year, making it difficult to compare to the Insurance industry average (-2.6%).
Return on Equity
High ROE: THG's Return on Equity (15.3%) is considered low.
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How is Hanover Insurance Group's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: THG's short term assets ($3.8B) do not cover its short term liabilities ($10.2B).
Long Term Liabilities: THG's short term assets ($3.8B) exceed its long term liabilities ($781.8M).
Debt to Equity History and Analysis
Debt Level: THG's net debt to equity ratio (18%) is considered satisfactory.
Reducing Debt: THG's debt to equity ratio has increased from 27% to 27.6% over the past 5 years.
Debt Coverage: THG's debt is well covered by operating cash flow (112.8%).
Interest Coverage: THG's interest payments on its debt are well covered by EBIT (16.8x coverage).
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What is Hanover Insurance Group current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: THG's dividend (2.07%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: THG's dividend (2.07%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Stability and Growth of Payments
Stable Dividend: THG's dividends per share have been stable in the past 10 years.
Growing Dividend: THG's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (23.9%), THG's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (12.3%), THG's dividend payments are thoroughly covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jack Roche (57 yo)
Mr. John Conner Roche, also known as Jack, has been President and Chief Executive Officer at Hanover Insurance Group Inc. since November 2017 and its Director since 2017. Prior to that, Mr. Roche served as...
CEO Compensation Analysis
Compensation vs Market: Jack's total compensation ($USD6.77M) is about average for companies of similar size in the US market ($USD8.23M).
Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.
Experienced Management: THG's management team is considered experienced (2.2 years average tenure).
Experienced Board: THG's board of directors are considered experienced (4.6 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Hanover Insurance Group, Inc.'s employee growth, exchange listings and data sources
- Name: The Hanover Insurance Group, Inc.
- Ticker: THG
- Exchange: NYSE
- Founded: 1852
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Implied Market Cap: US$5.183b
- Shares outstanding: 35.59m
- Website: https://www.hanover.com
Number of Employees
- The Hanover Insurance Group, Inc.
- 440 Lincoln Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/28 00:00|
|End of Day Share Price||2022/06/28 00:00|
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.