Employers Holdings, Inc. Fundamental Analysis (NYSE: EIG)
Employers Holdings, Inc. Fundamental Analysis (NYSE: EIG)
Employers Holdings, Inc. (NYSE: EIG) shows weak financial fundamentals with a PE ratio of 70.62, profit margin of 0.91%, and ROE of 0.82%. The company generates $1.0B in annual revenue with weak year-over-year growth of -2.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EIG's fundamental strength across five key dimensions:
Efficiency Score
WeakEIG struggles to generate sufficient returns from assets.
Valuation Score
ModerateEIG shows balanced valuation metrics.
Growth Score
WeakEIG faces weak or negative growth trends.
Financial Health Score
ExcellentEIG maintains a strong and stable balance sheet.
Profitability Score
ModerateEIG maintains healthy but balanced margins.
Key Financial Metrics
Is EIG Expensive or Cheap?
P/E Ratio
EIG trades at 70.62 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EIG's PEG of -0.85 indicates potential undervaluation.
Price to Book
The market values Employers Holdings, Inc. at 1.03 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 45.29 times EBITDA. This signals the market has high growth expectations.
How Well Does EIG Make Money?
Net Profit Margin
For every $100 in sales, Employers Holdings, Inc. keeps $0.91 as profit after all expenses.
Operating Margin
Core operations generate 0.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.82 in profit for every $100 of shareholder equity.
ROA
Employers Holdings, Inc. generates $0.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Employers Holdings, Inc. generates limited operating cash flow of $25.01M, signaling weaker underlying cash strength.
Free Cash Flow
Employers Holdings, Inc. generates weak or negative free cash flow of $24.10M, restricting financial flexibility.
FCF Per Share
Each share generates $1.17 in free cash annually.
FCF Yield
EIG converts 2.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
70.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.85
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
267.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.008
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.002
vs 25 benchmark
How EIG Stacks Against Its Sector Peers
| Metric | EIG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 70.62 | 21.28 | Worse (Expensive) |
| ROE | 0.82% | 667.00% | Weak |
| Net Margin | 0.91% | -489.00% (disorted) | Weak |
| Debt/Equity | 0.15 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 267.45 | 911.52 | Strong Liquidity |
| ROA | 0.22% | 4469169.00% | Weak |
EIG outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Employers Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.32%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-88.77%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
68.78%
Industry Style: Value, Dividend, Cyclical
High Growth