THG Stock Analysis: The Hanover Insurance | NYSE
Insurance - Property & Casualty | NYSE, USA | Market Cap: 7.662m USD | 12M Return: 23.1% | US4108671052 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 69.4M
Qual. Beats: 3
Rev. Trend: 99.1%
Qual. Beats: 3
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
The Hanover Insurance Group, Inc. (THG) is a U.S.-based property and casualty insurer offering a broad portfolio of commercial and personal coverage through four operating segments: Core Commercial, Specialty, Personal Lines, and Other. Its commercial offerings span multiple peril, automobile, workers compensation, professional and executive lines, marine, surety, and specialty property and casualty products, while its personal lines include auto, homeowners, umbrella, inland marine, and various niche coverages such as collector cars and valuable items. The company distributes its products exclusively through independent agents and brokers, a common channel in the U.S. P&C market that allows insurers to reach customers without owning captive sales networks. Founded in 1852 and headquartered in Worcester, Massachusetts, Hanover was previously known as Allmerica Financial Corp. before adopting its current name in December 2005.
- Catastrophe losses pressure combined ratio across segments
- Specialty segment posts double-digit premium growth
- Net investment income surges on higher interest rates
| Net Income: 755.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 0.71 > 1.0 |
| NWC/Revenue: 90.10% < 20% (prev 111.5%; Δ -21.36% < -1%) |
| CFO/TA 0.07 > 3% & CFO 1.26b > Net Income 755.6m |
| Net Debt (-1.18b) to EBITDA (1.01b): -1.17 < 3 |
| Current Ratio: 122.5 > 1.5 & < 3 |
| Outstanding Shares: last quarter (36.3m) vs 12m ago -0.27% < -2% |
| Gross Margin: 39.89% > 18% (prev 22.03%; Δ 17.86% > 0.5%) |
| Asset Turnover: 41.46% > 50% (prev 40.59%; Δ 0.87% > 0%) |
| Interest Coverage Ratio: 21.57 > 6 (EBIT TTM 1.01b / Interest Expense TTM 47.0m) |
| A: 0.36 (Total Current Assets 6.14b - Total Current Liabilities 50.1m) / Total Assets 16.9b |
| B: 0.24 (Retained Earnings 4.05b / Total Assets 16.9b) |
| C: 0.06 (EBIT TTM 1.01b / Avg Total Assets 16.3b) |
| D: 0.28 (Book Value of Equity 3.67b / Total Liabilities 13.2b) |
| Altman-Z'' = 3.86 = AA |
As of October 09, 2026, the stock is trading at USD 221.93 with a total of 192,220 shares traded. Over the past week, the price has changed by +2.30%, over one month by -0.71%, over three months by +5.01% and over the past year by +23.08%.
Current recommended Stop Loss: 216.00 (which is 2.7% or 1.4 ATR below the current price).
The Hanover Insurance has received a consensus analysts rating of 3.38. Therefore, it is recommended to hold THG.
- StrongBuy: 1
- Buy: 1
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 237 | 6.8% |
P/E Trailing = 10.5484
P/E Forward = 11.1483
P/S = 1.1327
P/B = 2.0629
P/EG = 0.3399
Revenue TTM = 6.76b USD
EBIT TTM = 1.01b USD
EBITDA TTM = 1.01b USD
Long Term Debt = 844.0m USD (from longTermDebt, last quarter)
Short Term Debt = 50.1m USD (from shortTermDebt, last quarter)
Debt = 844.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.18b USD (calculated: Debt 844.0m - CCE 2.02b)
Enterprise Value = 6.48b USD (7.66b + Debt 844.0m - CCE 2.02b)
Interest Coverage Ratio = 21.57 (Ebit TTM 1.01b / Interest Expense TTM 47.0m)
EV/FCF = 8.76x (Enterprise Value 6.48b / FCF TTM 740.0m)
FCF Yield = 11.41% (FCF TTM 740.0m / Enterprise Value 6.48b)
FCF Margin = 10.95% (FCF TTM 740.0m / Revenue TTM 6.76b)
Net Margin = 11.18% (Net Income TTM 755.6m / Revenue TTM 6.76b)
Gross Margin = 39.89% ((Revenue TTM 6.76b - Cost of Revenue TTM 4.06b) / Revenue TTM)
Gross Margin QoQ = 44.24% (prev 43.72%)
Tobins Q-Ratio = 0.38 (Enterprise Value 6.48b / Total Assets 16.9b)
Interest Expense / Debt = 5.57% (Interest Expense 47.0m / Debt 844.0m)
Taxrate = 22.02% (212.8m / 966.6m)
NOPAT = 790.5m (EBIT 1.01b * (1 - 22.02%))
Current Ratio = 64.48 (Total Current Assets 6.14b / Total Current Liabilities 95.2m)
Debt / Equity = 0.23 (Debt 844.0m / totalStockholderEquity, last quarter 3.67b)
Debt / EBITDA = -1.17 (Net Debt -1.18b / EBITDA 1.01b)
Debt / FCF = -1.59 (Net Debt -1.18b / FCF TTM 740.0m)
Total Stockholder Equity = 3.56b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.64% (Net Income 755.6m / Total Assets 16.9b)
RoE = 21.22% (Net Income TTM 755.6m / Total Stockholder Equity 3.56b)
RoCE = 23.01% (EBIT 1.01b / Capital Employed (Equity 3.56b + L.T.Debt 844.0m))
RoIC = 4.78% (NOPAT 790.5m / Invested Capital 16.5b)
WACC = 5.84% (E(7.66b)/V(8.51b) * Re(6.01%) + D(844.0m)/V(8.51b) * Rd(5.57%) * (1-Tc(0.22)))
Discount Rate = 6.01% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -28.43 | Cagr: 0.0%
[DCF] Terminal Value 77.97% ; FCFF base≈675.3m ; Y1≈774.1m ; Y5≈1.14b
[DCF] Fair Price = 526.2 (EV 17.1b - Net Debt -1.18b = Equity 18.3b / Shares 34.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 2.43 | # QB: 3
Revenue Correlation: 99.06 | Revenue CAGR: 4.76% | SUE: 1.18 | # QB: 3
EPS current Quarter (2026-09-30): EPS=4.41 | Chg30d=-1.00% | Revisions=+70% | Analysts=8
EPS current Year (2026-12-31): EPS=20.39 | Chg30d=+0.03% | Revisions=+40% | GrowthEPS=+6.8% | GrowthRev=+6.4%
EPS next Year (2027-12-31): EPS=19.64 | Chg30d=+0.58% | Revisions=+40% | GrowthEPS=-3.7% | GrowthRev=+5.0%
[Analyst] Revisions Ratio: +79% (up=11, down=0)