EIG

Employers Holdings, Inc.

Fundamental data last updated:September 27, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Financial Services

industry

Insurance - Specialty

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. It offers workers' compensation insurance to small businesses in low to medium hazard industries. The company markets its products through independent local, regional, and national agents and brokers; alternative distribution channels; and national, regional, and local trade groups and associations, as well as directly to customers. Employers Holdings, Inc. was founded in 2000 and is based in Reno, Nevada.

 


VALUATION

P/E

126.65

Market Cap ($M USD)

$957.18M

Forward P/E

17.22

PEG

0.03

PRICE TO SALES

1.11

PRICE TO BOOK

1.20

EV / EBITDA

57.23

5-Year Average P/E

Free Cash Flow Yield

3.10%

DCF Value

$93.20

Graham Number

$16.66

Price to FCF

32.23

EV to FCF

31.41

Earnings Yield

0.79%

FCF Yield

3.10%

DIVIDEND

Yield

3.01%

Annual Payout

$1.30

Payout Ratio

350.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.34

Next Year EPS Growth Estimate

$2.51

Next Year Revenue Growth Estimate

$781.52M

Return on Equity (ROE)

0.83%

FREE CASH FLOW

Operating Margin

1.03%

Debt-to-Equity

0.04

Piotroski F-Score

8

Altman Z-Score

0.88

Return on Invested Capital (ROIC)

0.93%

Current Ratio

0.77

Quick Ratio

0.77

Net Debt to EBITDA

-1.49

Interest Coverage

5.93

Gross Profit margin

34.28%

FCF PER SHARE

$1.24

REVENUE PER SHARE

$35.97

Gainseekers Quantitative Analysis

Summary

EIG Employers Holdings, Inc. appears to be significantly undervalued based on its DCF value, trading well below this intrinsic measure. The Forward P/E of 16.72 suggests a more reasonable valuation compared to its sky-high trailing P/E, indicating potential growth not yet priced in. However, the Altman Z-score of 0.87 raises red flags about financial distress, while the meager earnings yield of 0.81% suggests limited immediate returns. Despite these concerns, the market may be underestimating its future earnings potential, given the stark contrast between its current and estimated EPS.

AI Exposure / Tech Reliance

Operating in the insurance sector, EIG is positioned to leverage AI for risk assessment and underwriting efficiency. As the industry increasingly adopts tech-driven solutions, EIG's ability to integrate these advancements will be crucial. Their resilience will depend on how effectively they can harness AI to enhance customer experience and operational efficiency.

The Bull Case

For the discerning GARP investor, EIG offers a compelling narrative. With a robust Piotroski F-Score of 8, the company demonstrates strong financial health and operational efficiency. The ROIC of 0.93% and a solid FCF yield indicate effective capital allocation and potential for future growth. Despite a modest operating margin, these metrics suggest EIG possesses pricing power and the ability to generate sustainable cash flows.

The Bear Case

Yet, the bear case cannot be ignored. The company's valuation multiples, such as an EV to EBITDA of 55.54, signal potential overvaluation. The operating margin of just 1.03% raises concerns about profitability, while the payout ratio of 350% suggests unsustainable dividend practices. Additionally, trading close to its 52-week high, the stock may be technically overextended, posing risks for new investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

0.50

Insider Buying % (6 Mo)

Distance to 52-Week High

13.15%

Distance to 52-Week Low

17.41%

EARNINGS SURPRISE %

-3.28%

50-DAY SMA

$41.85

200-DAY SMA

$41.82

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.