(THG) The Hanover Insurance - Overview
Stock: Property, Casualty, Auto, Homeowners, Commercial
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.07% |
| Yield on Cost 5y | 3.62% |
| Yield CAGR 5y | 6.38% |
| Payout Consistency | 83.9% |
| Payout Ratio | 19.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 21.1% |
| Relative Tail Risk | -1.56% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.28 |
| Alpha | 3.57 |
| Character TTM | |
|---|---|
| Beta | 0.386 |
| Beta Downside | 0.488 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.55% |
| CAGR/Max DD | 0.38 |
Description: THG The Hanover Insurance January 09, 2026
The Hanover Insurance Group (NYSE:THG) writes a broad range of U.S. property-and-casualty products through four operating segments-Core Commercial, Specialty, Personal Lines, and Other-selling via independent agents and brokers. Its commercial portfolio includes multiple-peril, workers’ compensation, and auto coverages, while the Specialty segment focuses on excess & surplus lines, industrial and general liability programs. Personal Lines deliver auto, homeowners, umbrella, inland-marine, cyber, and other niche coverages.
As of the most recent fiscal quarter, THG reported a combined ratio of 94.1%, indicating underwriting profitability, and generated $1.2 billion in net written premiums, up 5% year-over-year. The company’s earnings per share (EPS) rose 12% to $5.31, driven by a 3% increase in investment income as higher interest rates lifted the yield on its fixed-income portfolio. Key sector drivers include the cyclical nature of P&C pricing, rising climate-related loss exposure, and the sensitivity of investment income to the Federal Reserve’s rate policy.
For a deeper quantitative view, you may find ValueRay’s analyst dashboards useful for tracking THG’s valuation metrics and risk factors.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 631.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.58 > 1.0 |
| NWC/Revenue: 37.18% < 20% (prev 24.87%; Δ 12.32% < -1%) |
| CFO/TA 0.06 > 3% & CFO 1.01b > Net Income 631.9m |
| Net Debt (364.1m) to EBITDA (830.8m): 0.44 < 3 |
| Current Ratio: 6.52 > 1.5 & < 3 |
| Outstanding Shares: last quarter (36.4m) vs 12m ago -0.27% < -2% |
| Gross Margin: 23.35% > 18% (prev 0.19%; Δ 2316 % > 0.5%) |
| Asset Turnover: 40.34% > 50% (prev 40.13%; Δ 0.21% > 0%) |
| Interest Coverage Ratio: 22.44 > 6 (EBITDA TTM 830.8m / Interest Expense TTM 37.2m) |
Altman Z'' 2.25
| A: 0.14 (Total Current Assets 2.85b - Total Current Liabilities 436.8m) / Total Assets 16.77b |
| B: 0.21 (Retained Earnings 3.58b / Total Assets 16.77b) |
| C: 0.05 (EBIT TTM 834.7m / Avg Total Assets 16.07b) |
| D: 0.25 (Book Value of Equity 3.38b / Total Liabilities 13.35b) |
| Altman-Z'' Score: 2.25 = BBB |
What is the price of THG shares?
Over the past week, the price has changed by +1.05%, over one month by -0.68%, over three months by +0.06% and over the past year by +8.19%.
Is THG a buy, sell or hold?
- StrongBuy: 1
- Buy: 3
- Hold: 3
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the THG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 199.5 | 13.4% |
| Analysts Target Price | 199.5 | 13.4% |
| ValueRay Target Price | 190.9 | 8.5% |
THG Fundamental Data Overview January 31, 2026
P/E Forward = 9.8522
P/S = 0.9552
P/B = 1.8046
P/EG = -23.25
Revenue TTM = 6.48b USD
EBIT TTM = 834.7m USD
EBITDA TTM = 830.8m USD
Long Term Debt = 1.28b USD (from longTermDebt, last quarter)
Short Term Debt = 436.8m USD (from shortTermDebt, last quarter)
Debt = 1.28b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 364.1m USD (from netDebt column, last quarter)
Enterprise Value = 6.58b USD (6.22b + Debt 1.28b - CCE 915.7m)
Interest Coverage Ratio = 22.44 (Ebit TTM 834.7m / Interest Expense TTM 37.2m)
EV/FCF = 6.55x (Enterprise Value 6.58b / FCF TTM 1.00b)
FCF Yield = 15.26% (FCF TTM 1.00b / Enterprise Value 6.58b)
FCF Margin = 15.48% (FCF TTM 1.00b / Revenue TTM 6.48b)
Net Margin = 9.75% (Net Income TTM 631.9m / Revenue TTM 6.48b)
Gross Margin = 23.35% ((Revenue TTM 6.48b - Cost of Revenue TTM 4.97b) / Revenue TTM)
Gross Margin QoQ = 24.50% (prev 22.70%)
Tobins Q-Ratio = 0.39 (Enterprise Value 6.58b / Total Assets 16.77b)
Interest Expense / Debt = 0.91% (Interest Expense 11.6m / Debt 1.28b)
Taxrate = 21.36% (48.5m / 227.1m)
NOPAT = 656.4m (EBIT 834.7m * (1 - 21.36%))
Current Ratio = 6.52 (Total Current Assets 2.85b / Total Current Liabilities 436.8m)
Debt / Equity = 0.37 (Debt 1.28b / totalStockholderEquity, last quarter 3.43b)
Debt / EBITDA = 0.44 (Net Debt 364.1m / EBITDA 830.8m)
Debt / FCF = 0.36 (Net Debt 364.1m / FCF TTM 1.00b)
Total Stockholder Equity = 3.13b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.93% (Net Income 631.9m / Total Assets 16.77b)
RoE = 20.17% (Net Income TTM 631.9m / Total Stockholder Equity 3.13b)
RoCE = 18.92% (EBIT 834.7m / Capital Employed (Equity 3.13b + L.T.Debt 1.28b))
RoIC = 16.25% (NOPAT 656.4m / Invested Capital 4.04b)
WACC = 6.21% (E(6.22b)/V(7.50b) * Re(7.34%) + D(1.28b)/V(7.50b) * Rd(0.91%) * (1-Tc(0.21)))
Discount Rate = 7.34% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 33.33 | Cagr: 0.28%
[DCF Debug] Terminal Value 84.09% ; FCFF base≈872.8m ; Y1≈801.3m ; Y5≈715.0m
Fair Price DCF = 539.7 (EV 19.57b - Net Debt 364.1m = Equity 19.21b / Shares 35.6m; r=6.21% [WACC]; 5y FCF grow -10.27% → 2.90% )
EPS Correlation: 39.37 | EPS CAGR: 11.54% | SUE: 0.82 | # QB: 0
Revenue Correlation: 93.89 | Revenue CAGR: 5.13% | SUE: -1.81 | # QB: 0
EPS next Quarter (2026-03-31): EPS=4.48 | Chg30d=+0.000 | Revisions Net=+1 | Analysts=6
EPS next Year (2026-12-31): EPS=16.87 | Chg30d=+0.006 | Revisions Net=+0 | Growth EPS=-8.0% | Growth Revenue=+5.3%