(EIG) Employers Holdings - Overview
Sector: Financial Services | Industry: Insurance - Specialty | Exchange: NYSE (USA) | Market Cap: 800m USD | Total Return: -8.1% in 12m
Avg Turnover: 7.87M
EPS Trend: -76.0%
Qual. Beats: 0
Rev. Trend: 49.7%
Qual. Beats: 0
Warnings
P/E ratio 95.3
Tailwinds
Idiosyncratic Leader
Employers Holdings, Inc. (EIG) is a Reno-based insurance holding company specializing in workers compensation products for small businesses within the United States. The company focuses on low-to-medium hazard risk profiles, distributing its services through a multi-channel network of independent agents, brokers, trade associations, and direct-to-customer platforms.
Operating within the Property & Casualty sector, the company utilizes a business model centered on statutory coverage, which is legally mandated for most employers. This niche focus allows for specialized underwriting and claims management tailored to small-enterprise risk. Investors can further analyze these risk-adjusted returns on ValueRay.
The firm maintains a strategic emphasis on diversified distribution to mitigate geographic and sector concentration. By targeting small businesses, EIG operates in a fragmented market segment where digital integration and automated underwriting are increasingly critical for maintaining competitive loss ratios.
- Underwriting margins hinge on loss frequency and severity trends in small businesses
- Net investment income fluctuates with Federal Reserve interest rate policy and yield
- Premium growth depends on economic health and payroll expansion in low-hazard sectors
- State-level workers’ compensation regulatory shifts impact rate adequacy and pricing power
- Strategic shift toward direct-to-customer digital channels influences long-term acquisition costs
| Net Income: 8.20m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -1.56 > 1.0 |
| NWC/Revenue: -67.23% < 20% (prev -266.8%; Δ 199.6% < -1%) |
| CFO/TA 0.01 > 3% & CFO 46.9m > Net Income 8.20m |
| Net Debt (-1.01b) to EBITDA (12.1m): -83.73 < 3 |
| Current Ratio: 0.77 > 1.5 & < 3 |
| Outstanding Shares: last quarter (24.1m) vs 12m ago -3.39% < -2% |
| Gross Margin: 34.31% > 18% (prev 0.35%; Δ 3.40k% > 0.5%) |
| Asset Turnover: 24.69% > 50% (prev 24.18%; Δ 0.51% > 0%) |
| Interest Coverage Ratio: 5.93 > 6 (EBITDA TTM 12.1m / Interest Expense TTM 1.50m) |
| A: -0.17 (Total Current Assets 1.90b - Total Current Liabilities 2.48b) / Total Assets 3.44b |
| B: 0.42 (Retained Earnings 1.46b / Total Assets 3.44b) |
| C: 0.00 (EBIT TTM 8.90m / Avg Total Assets 3.50b) |
| D: 0.56 (Book Value of Equity 1.45b / Total Liabilities 2.57b) |
| Altman-Z'' = 0.88 = B |
| DSRI: 0.95 (Receivables 755.1m/789.9m, Revenue 863.4m/860.2m) |
| GMI: 1.02 (GM 34.31% / 35.10%) |
| AQI: 0.46 (AQ_t 0.44 / AQ_t-1 0.97) |
| SGI: 1.00 (Revenue 863.4m / 860.2m) |
| TATA: -0.01 (NI 8.20m - CFO 46.9m) / TA 3.44b) |
| Beneish M = -3.37 (Cap -4..+1) = AA |
As of May 28, 2026, the stock is trading at USD 43.83 with a total of 139,875 shares traded.
Over the past week, the price has changed by +1.39%,
over one month by +3.94%,
over three months by +7.70% and
over the past year by -8.09%.
Employers Holdings has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold EIG.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 46.5 | 6.1% |
P/E Trailing = 95.3478
P/E Forward = 13.6054
P/S = 0.9264
P/B = 0.9234
P/EG = 1.319
Revenue TTM = 863.4m USD
EBIT TTM = 8.90m USD
EBITDA TTM = 12.1m USD
Long Term Debt = 16.0m USD (from longTermDebt, last fiscal year)
Short Term Debt = 125.0m USD (from shortTermDebt, last quarter)
Debt = 132.6m USD (from shortLongTermDebtTotal, last quarter) + Leases 3.80m
Net Debt = -1.01b USD (calculated: Debt 132.6m - CCE 1.15b)
Enterprise Value = 800.1m USD (floored to Market Cap, CCE > MCap+Debt)
Interest Coverage Ratio = 5.93 (Ebit TTM 8.90m / Interest Expense TTM 1.50m)
EV/FCF = 26.94x (Enterprise Value 800.1m / FCF TTM 29.7m)
FCF Yield = 3.71% (FCF TTM 29.7m / Enterprise Value 800.1m)
FCF Margin = 3.44% (FCF TTM 29.7m / Revenue TTM 863.4m)
Net Margin = 0.95% (Net Income TTM 8.20m / Revenue TTM 863.4m)
Gross Margin = 34.31% ((Revenue TTM 863.4m - Cost of Revenue TTM 567.2m) / Revenue TTM)
Gross Margin QoQ = 37.81% (prev 63.40%)
Tobins Q-Ratio = 0.23 (Enterprise Value 800.1m / Total Assets 3.44b)
Interest Expense / Debt = 1.13% (Interest Expense 1.50m / Debt 132.6m)
Taxrate = 20.31% (2.60m / 12.8m)
NOPAT = 7.09m (EBIT 8.90m * (1 - 20.31%))
Current Ratio = 0.77 (Total Current Assets 1.90b / Total Current Liabilities 2.48b)
Debt / Equity = 0.15 (Debt 132.6m / totalStockholderEquity, last quarter 866.5m)
Debt / EBITDA = -83.73 (Net Debt -1.01b / EBITDA 12.1m)
Debt / FCF = -34.11 (Net Debt -1.01b / FCF TTM 29.7m)
Total Stockholder Equity = 986.1m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.23% (Net Income 8.20m / Total Assets 3.44b)
RoE = 0.83% (Net Income TTM 8.20m / Total Stockholder Equity 986.1m)
RoCE = 0.89% (EBIT 8.90m / Capital Employed (Equity 986.1m + L.T.Debt 16.0m))
RoIC = 0.66% (NOPAT 7.09m / Invested Capital 1.08b)
WACC = 6.15% (E(800.1m)/V(932.7m) * Re(7.02%) + D(132.6m)/V(932.7m) * Rd(1.13%) * (1-Tc(0.20)))
Discount Rate = 7.02% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -87.06 | Cagr: -2.92%
[DCF] Terminal Value 73.10% ; FCFF base≈52.3m ; Y1≈45.9m ; Y5≈37.1m
[DCF] Fair Price = 88.16 (EV 595.2m - Net Debt -1.01b = Equity 1.61b / Shares 18.2m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -75.99 | EPS CAGR: -43.46% | SUE: 0.03 | # QB: 0
Revenue Correlation: 49.67 | Revenue CAGR: 1.17% | SUE: -0.23 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.56 | Chg30d=+3.73% | Revisions=+14% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.61 | Chg30d=+8.93% | Revisions=+14% | Analysts=3
EPS current Year (2026-12-31): EPS=2.32 | Chg30d=+6.11% | Revisions=+33% | GrowthEPS=+149.1% | GrowthRev=-6.4%
EPS next Year (2027-12-31): EPS=2.57 | Chg30d=+2.67% | Revisions=+14% | GrowthEPS=+10.8% | GrowthRev=-2.8%
[Analyst] Revisions Ratio: +33%