(THG) The Hanover Insurance - Ratings and Ratios
Commercial Auto, Workers Comp, Homeowners, Auto, Business Liability
THG EPS (Earnings per Share)
THG Revenue
Description: THG The Hanover Insurance
The Hanover Insurance Group Inc (NYSE:THG) is a property and casualty insurance provider operating in the United States, offering a diverse range of insurance products and services through four business segments: Core Commercial, Specialty, Personal Lines, and Other.
The companys business segments cater to different customer needs, with Core Commercial and Specialty focusing on commercial insurance products, such as commercial multiple peril, workers compensation, and commercial automobile coverage, while Personal Lines provides personal automobile, homeowners, and other personal insurance products. The companys diverse product offerings enable it to maintain a strong presence in the US insurance market.
From a financial perspective, The Hanover Insurance Group Inc has a market capitalization of approximately $5.87 billion, with a return on equity (ROE) of 15.51%, indicating a relatively strong profitability profile. Additionally, the companys forward price-to-earnings (P/E) ratio is 11.64, suggesting that the stock may be undervalued relative to its earnings growth prospects.
Some key performance indicators (KPIs) to monitor for The Hanover Insurance Group Inc include its loss ratio, expense ratio, and combined ratio, which can provide insights into the companys underwriting performance and operational efficiency. The companys ability to generate investment income, as well as its capital adequacy and leverage ratios, are also important metrics to consider when evaluating its financial health and stability.
The Hanover Insurance Group Inc has a long history dating back to 1852, and its established presence in the US insurance market, combined with its diverse product offerings and relatively strong financial profile, make it a notable player in the property and casualty insurance industry.
THG Stock Overview
| Market Cap in USD | 6,295m |
| Sub-Industry | Property & Casualty Insurance |
| IPO / Inception | 1995-10-10 |
THG Stock Ratings
| Growth Rating | 70.4% |
| Fundamental | 84.3% |
| Dividend Rating | 59.8% |
| Return 12m vs S&P 500 | 4.96% |
| Analyst Rating | 3.71 of 5 |
THG Dividends
| Dividend Yield 12m | 2.11% |
| Yield on Cost 5y | 4.20% |
| Annual Growth 5y | 5.42% |
| Payout Consistency | 85.8% |
| Payout Ratio | 21.4% |
THG Growth Ratios
| Growth Correlation 3m | 74.9% |
| Growth Correlation 12m | 84.6% |
| Growth Correlation 5y | 62.5% |
| CAGR 5y | 12.77% |
| CAGR/Max DD 3y | 0.45 |
| CAGR/Mean DD 3y | 1.80 |
| Sharpe Ratio 12m | 0.71 |
| Alpha | 15.85 |
| Beta | 0.408 |
| Volatility | 20.83% |
| Current Volume | 188.9k |
| Average Volume 20d | 192.2k |
| Stop Loss | 174.9 (-3%) |
| Signal | -0.22 |
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (555.3m TTM) > 0 and > 6% of Revenue (6% = 383.2m TTM) |
| FCFTA 0.05 (>2.0%) and ΔFCFTA 1.97pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 26.65% (prev -66.45%; Δ 93.10pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.05 (>3.0%) and CFO 853.7m > Net Income 555.3m (YES >=105%, WARN >=100%) |
| Net Debt (540.5m) to EBITDA (732.0m) ratio: 0.74 <= 3.0 (WARN <= 3.5) |
| Current Ratio 4.90 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (36.4m) change vs 12m ago 0.28% (target <= -2.0% for YES) |
| Gross Margin 22.03% (prev 16.42%; Δ 5.61pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 41.73% (prev 41.17%; Δ 0.57pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 21.53 (EBITDA TTM 732.0m / Interest Expense TTM 34.1m) >= 6 (WARN >= 3) |
Altman Z'' 2.01
| (A) 0.11 = (Total Current Assets 2.14b - Total Current Liabilities 436.8m) / Total Assets 15.73b |
| (B) 0.22 = Retained Earnings (Balance) 3.43b / Total Assets 15.73b |
| (C) 0.05 = EBIT TTM 734.2m / Avg Total Assets 15.30b |
| (D) 0.25 = Book Value of Equity 3.14b / Total Liabilities 12.52b |
| Total Rating: 2.01 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 84.32
| 1. Piotroski 7.0pt = 2.0 |
| 2. FCF Yield 12.36% = 5.0 |
| 3. FCF Margin 13.23% = 3.31 |
| 4. Debt/Equity 0.24 = 2.47 |
| 5. Debt/Ebitda 1.07 = 1.67 |
| 6. ROIC - WACC 8.58% = 10.73 |
| 7. RoE 18.54% = 1.55 |
| 8. Rev. Trend 93.05% = 4.65 |
| 9. Rev. CAGR 7.12% = 0.89 |
| 10. EPS Trend 82.37% = 2.06 |
| 11. EPS CAGR 0.0% = 0.0 |
What is the price of THG shares?
Over the past week, the price has changed by +1.50%, over one month by +5.64%, over three months by +6.94% and over the past year by +24.12%.
Is The Hanover Insurance a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of THG is around 184.92 USD . This means that THG is currently overvalued and has a potential downside of 2.52%.
Is THG a buy, sell or hold?
- Strong Buy: 1
- Buy: 3
- Hold: 3
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the THG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 197 | 9.2% |
| Analysts Target Price | 197 | 9.2% |
| ValueRay Target Price | 203 | 12.6% |
Last update: 2025-09-03 08:59
THG Fundamental Data Overview
CCE Cash And Equivalents = 244.1m USD (last quarter)
P/E Trailing = 11.5929
P/E Forward = 10.661
P/S = 0.9825
P/B = 1.9572
P/EG = -23.25
Beta = 0.457
Revenue TTM = 6.39b USD
EBIT TTM = 734.2m USD
EBITDA TTM = 732.0m USD
Long Term Debt = 347.8m USD (from longTermDebt, last quarter)
Short Term Debt = 436.8m USD (from shortTermDebt, last quarter)
Debt = 784.6m USD (Calculated: Short Term 436.8m + Long Term 347.8m)
Net Debt = 540.5m USD (from netDebt column, last quarter)
Enterprise Value = 6.84b USD (6.29b + Debt 784.6m - CCE 244.1m)
Interest Coverage Ratio = 21.53 (Ebit TTM 734.2m / Interest Expense TTM 34.1m)
FCF Yield = 12.36% (FCF TTM 844.8m / Enterprise Value 6.84b)
FCF Margin = 13.23% (FCF TTM 844.8m / Revenue TTM 6.39b)
Net Margin = 8.70% (Net Income TTM 555.3m / Revenue TTM 6.39b)
Gross Margin = 22.03% ((Revenue TTM 6.39b - Cost of Revenue TTM 4.98b) / Revenue TTM)
Tobins Q-Ratio = 2.17 (Enterprise Value 6.84b / Book Value Of Equity 3.14b)
Interest Expense / Debt = 1.10% (Interest Expense 8.60m / Debt 784.6m)
Taxrate = 20.92% (112.5m / 537.8m)
NOPAT = 580.6m (EBIT 734.2m * (1 - 20.92%))
Current Ratio = 4.90 (Total Current Assets 2.14b / Total Current Liabilities 436.8m)
Debt / Equity = 0.24 (Debt 784.6m / last Quarter total Stockholder Equity 3.22b)
Debt / EBITDA = 1.07 (Net Debt 540.5m / EBITDA 732.0m)
Debt / FCF = 0.93 (Debt 784.6m / FCF TTM 844.8m)
Total Stockholder Equity = 3.00b (last 4 quarters mean)
RoA = 3.53% (Net Income 555.3m, Total Assets 15.73b )
RoE = 18.54% (Net Income TTM 555.3m / Total Stockholder Equity 3.00b)
RoCE = 21.96% (Ebit 734.2m / (Equity 3.00b + L.T.Debt 347.8m))
RoIC = 15.36% (NOPAT 580.6m / Invested Capital 3.78b)
WACC = 6.78% (E(6.29b)/V(7.08b) * Re(7.52%)) + (D(784.6m)/V(7.08b) * Rd(1.10%) * (1-Tc(0.21)))
Shares Correlation 3-Years: 75.04 | Cagr: 0.08%
Discount Rate = 7.52% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 76.97% ; FCFE base≈709.2m ; Y1≈651.1m ; Y5≈582.4m
Fair Price DCF = 292.9 (DCF Value 10.48b / Shares Outstanding 35.8m; 5y FCF grow -10.27% → 3.0% )
Revenue Correlation: 93.05 | Revenue CAGR: 7.12%
Rev Growth-of-Growth: -1.48
EPS Correlation: 82.37 | EPS CAGR: 0.0%
EPS Growth-of-Growth: -89.26
Additional Sources for THG Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle