(THG) The Hanover Insurance - Overview

Sector: Financial Services | Industry: Insurance - Property & Casualty | Exchange: NYSE (USA) | Market Cap: 6.623m USD | Total Return: 18.7% in 12m

Commercial Insurance, Personal Insurance, Specialty Insurance, Surety Bonds
Total Rating 59
Safety 36
Buy Signal 0.33
Insurance - Property & Casualty
Industry Rotation: +11.5
Market Cap: 6.62B
Avg Turnover: 52.1M
Risk 3d forecast
Volatility21.5%
VaR 5th Pctl3.80%
VaR vs Median7.46%
Reward TTM
Sharpe Ratio0.79
Rel. Str. IBD65.7
Rel. Str. Peer Group85.2
Character TTM
Beta0.304
Beta Downside0.309
Hurst Exponent0.493
Drawdowns 3y
Max DD13.98%
CAGR/Max DD1.56
CAGR/Mean DD5.54
EPS (Earnings per Share) EPS (Earnings per Share) of THG over the last years for every Quarter: "2021-03": 1.66, "2021-06": 2.85, "2021-09": 0.85, "2021-12": 3.38, "2022-03": 3.26, "2022-06": 2.32, "2022-09": 0.99, "2022-12": -1.05, "2023-03": 0.13, "2023-06": -1.91, "2023-09": 0.19, "2023-12": 3.13, "2024-03": 3.08, "2024-06": 1.88, "2024-09": 3.05, "2024-12": 5.32, "2025-03": 3.87, "2025-06": 4.35, "2025-09": 5.09, "2025-12": 5.79, "2026-03": 5.25,
EPS CAGR: 24.33%
EPS Trend: 70.0%
Last SUE: 1.71
Qual. Beats: 2
Revenue Revenue of THG over the last years for every Quarter: 2021-03: 1282.1, 2021-06: 1307.8, 2021-09: 1274.9, 2021-12: 1374.7, 2022-03: 1330.7, 2022-06: 1292.9, 2022-09: 1366.3, 2022-12: 1478.7, 2023-03: 1443.7, 2023-06: 1504.4, 2023-09: 1516.6, 2023-12: 1528.8, 2024-03: 1541.9, 2024-06: 1535.3, 2024-09: 1561.3, 2024-12: 1578.3, 2025-03: 1595.7, 2025-06: 1650.9, 2025-09: 1658.2, 2025-12: 1671.9, 2026-03: 1701.4,
Rev. CAGR: 7.60%
Rev. Trend: 94.3%
Last SUE: 2.16
Qual. Beats: 2

Warnings

No concerns identified

Tailwinds

Confidence

Description: THG The Hanover Insurance

The Hanover Insurance Group (THG) is a Worcester, Massachusetts-based provider of property and casualty insurance, operating through Core Commercial, Specialty, and Personal Lines segments. Founded in 1852, the company distributes its diverse portfolio-ranging from workers compensation and marine insurance to personal automobile and homeowners policies-exclusively through a network of independent agents and brokers.

The company utilizes an agency-focused business model, which relies on localized expertise to penetrate niche markets such as cultural institutions and life sciences. Within the property and casualty sector, firms like Hanover manage profitability through the combined ratio, a measure that compares incurred losses and expenses to earned premiums. For deeper insight into these performance metrics, investors may find ValueRay to be a useful resource for further analysis.

Headlines to Watch Out For
  • Premium pricing adjustments in personal lines offset rising catastrophe loss frequency
  • Core commercial segment expansion hinges on independent agent and broker distribution
  • Investment income sensitivity fluctuates with Federal Reserve interest rate policy shifts
  • Specialty segment margin growth depends on disciplined underwriting in niche markets
  • Inflationary pressure on auto repair and construction costs impacts loss ratios
Piotroski VR‑10 (Strict) 7.5
Net Income: 721.1m TTM > 0 and > 6% of Revenue
FCF/TA: 0.08 > 0.02 and ΔFCF/TA 2.53 > 1.0
NWC/Revenue: 30.67% < 20% (prev 127.6%; Δ -96.97% < -1%)
CFO/TA 0.08 > 3% & CFO 1.26b > Net Income 721.1m
Net Debt (-1.18b) to EBITDA (953.3m): -1.24 < 3
Current Ratio: 41.90 > 1.5 & < 3
Outstanding Shares: last quarter (36.3m) vs 12m ago -0.27% < -2%
Gross Margin: 34.52% > 18% (prev 0.20%; Δ 3.43k% > 0.5%)
Asset Turnover: 41.77% > 50% (prev 40.53%; Δ 1.23% > 0%)
Interest Coverage Ratio: 9.80 > 6 (EBITDA TTM 953.3m / Interest Expense TTM 45.5m)
Altman Z'' 2.07
A: 0.12 (Total Current Assets 2.10b - Total Current Liabilities 50.1m) / Total Assets 16.53b
B: 0.24 (Retained Earnings 3.89b / Total Assets 16.53b)
C: 0.03 (EBIT TTM 446.1m / Avg Total Assets 16.00b)
D: 0.28 (Book Value of Equity 3.66b / Total Liabilities 12.96b)
Altman-Z'' Score: 2.07 = BBB
What is the price of THG shares? As of May 19, 2026, the stock is trading at USD 197.54 with a total of 325,180 shares traded.
Over the past week, the price has changed by +4.03%, over one month by +9.75%, over three months by +13.84% and over the past year by +18.69%.
Is THG a buy, sell or hold? The Hanover Insurance has received a consensus analysts rating of 3.71. Therefor, it is recommend to hold THG.
  • StrongBuy: 1
  • Buy: 3
  • Hold: 3
  • Sell: 0
  • StrongSell: 0
What are the forecasts/targets for the THG price?
Analysts Target Price 202.4 2.5%
The Hanover Insurance (THG) - Fundamental Data Overview as of 15 May 2026
P/E Trailing = 9.551
P/E Forward = 10.7411
P/S = 0.9896
P/B = 1.8534
P/EG = 0.3399
Revenue TTM = 6.68b USD
EBIT TTM = 446.1m USD
EBITDA TTM = 953.3m USD
Long Term Debt = 843.8m USD (from longTermDebt, last quarter)
Short Term Debt = 50.1m USD (from shortTermDebt, last quarter)
Debt = 843.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.18b USD (recalculated: Debt 843.8m - CCE 2.03b)
Enterprise Value = 5.44b USD (6.62b + Debt 843.8m - CCE 2.03b)
Interest Coverage Ratio = 9.80 (Ebit TTM 446.1m / Interest Expense TTM 45.5m)
EV/FCF = 4.36x (Enterprise Value 5.44b / FCF TTM 1.25b)
FCF Yield = 22.95% (FCF TTM 1.25b / Enterprise Value 5.44b)
FCF Margin = 18.68% (FCF TTM 1.25b / Revenue TTM 6.68b)
Net Margin = 10.79% (Net Income TTM 721.1m / Revenue TTM 6.68b)
Gross Margin = 34.52% ((Revenue TTM 6.68b - Cost of Revenue TTM 4.38b) / Revenue TTM)
Gross Margin QoQ = 43.72% (prev 46.79%)
Tobins Q-Ratio = 0.33 (Enterprise Value 5.44b / Total Assets 16.53b)
Interest Expense / Debt = 1.28% (Interest Expense 10.8m / Debt 843.8m)
Taxrate = 21.21% (50.3m / 237.1m)
NOPAT = 351.5m (EBIT 446.1m * (1 - 21.21%))
Current Ratio = 41.90 (Total Current Assets 2.10b / Total Current Liabilities 50.1m)
Debt / Equity = 0.24 (Debt 843.8m / totalStockholderEquity, last quarter 3.57b)
Debt / EBITDA = -1.24 (Net Debt -1.18b / EBITDA 953.3m)
Debt / FCF = -0.95 (Net Debt -1.18b / FCF TTM 1.25b)
Total Stockholder Equity = 3.45b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.51% (Net Income 721.1m / Total Assets 16.53b)
RoE = 20.92% (Net Income TTM 721.1m / Total Stockholder Equity 3.45b)
RoCE = 10.40% (EBIT 446.1m / Capital Employed (Equity 3.45b + L.T.Debt 843.8m))
RoIC = 7.85% (NOPAT 351.5m / Invested Capital 4.48b)
WACC = 6.37% (E(6.62b)/V(7.47b) * Re(7.05%) + D(843.8m)/V(7.47b) * Rd(1.28%) * (1-Tc(0.21)))
Discount Rate = 7.05% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: 9.94 | Cagr: 0.12%
[DCF] Terminal Value 87.13% ; FCFF base≈1.06b ; Y1≈1.31b ; Y5≈2.23b
[DCF] Fair Price = 1.68k (EV 57.53b - Net Debt -1.18b = Equity 58.71b / Shares 35.0m; r=6.37% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 70.00 | EPS CAGR: 24.33% | SUE: 1.71 | # QB: 2
Revenue Correlation: 94.29 | Revenue CAGR: 7.60% | SUE: 2.16 | # QB: 2
EPS current Quarter (2026-06-30): EPS=3.86 | Chg30d=+11.36% | Revisions=+50% | Analysts=7
EPS next Quarter (2026-09-30): EPS=4.17 | Chg30d=+1.70% | Revisions=+25% | Analysts=7
EPS current Year (2026-12-31): EPS=18.61 | Chg30d=+8.60% | Revisions=+50% | GrowthEPS=-2.5% | GrowthRev=+5.3%
EPS next Year (2027-12-31): EPS=18.54 | Chg30d=+2.40% | Revisions=+50% | GrowthEPS=-0.4% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: +50%