Everest Group (EG) AI Stock Analysis

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Everest Group

(NYSE:EG)

Rating:70Outperform

Price Target:

$375.00

▲(11.74%Upside)

Everest Group's overall score is driven primarily by its strong financial performance, reinforced by robust revenue growth and cash flow management. However, technical indicators suggest a bearish trend, and the earnings call highlighted challenges despite growth in certain areas. Valuation remains fair, with potential income from dividends, and recent board changes are expected to positively impact strategy.

Positive Factors

Financial Performance

The company sees the potential for higher Property Reinsurance rates, suggesting growth in this area.

Leadership

EG's newly appointed CEO is taking meaningful steps to turnaround profitability levels.

Management Strategy

There is greater confidence in the company's balance sheet following reserve strengthening efforts.

Negative Factors

Earnings

Analyst lowers forward EPS primarily due to higher loss picks and less premium growth.

Market Environment

The reinsurance segment should also face a slowdown due to a soft market pricing environment.

Stock Valuation

The stock is downgraded to Equal-weight and the price target is reduced to $340 given the reserve charges and updated outlook.

Everest Group (EG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$14.62B

Dividend Yield2.33%

Average Volume (3M)402.09K

Price to Earnings (P/E)17.3

Beta (1Y)0.32

Revenue Growth12.81%

EPS Growth-70.56%

CountryUS

Employees3,037

SectorFinancial

Sector Strength82

IndustryInsurance - Reinsurance

Share Statistics

EPS (TTM)6.45

Shares Outstanding42,534,730

10 Day Avg. Volume410,045

30 Day Avg. Volume402,086

Financial Highlights & Ratios

PEG Ratio-0.46

Price to Book (P/B)1.05

Price to Sales (P/S)0.00

P/FCF Ratio3.03

Enterprise Value/Market Cap0.91

Enterprise Value/Revenue0.20

Enterprise Value/Gross Profit0.76

Enterprise Value/Ebitda1.02K

Forecast

1Y Price Target

$384.00

Price Target Upside14.43% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Everest Group Business Overview & Revenue Model

Company DescriptionEverest Group (EG) is a leading research and consulting firm specializing in global services, technology, and strategic sourcing. The company provides insights, analysis, and advisory services to help businesses optimize their operations and improve decision-making processes. With a focus on sectors such as IT services, business process outsourcing, and digital transformation, Everest Group offers a range of products including research reports, data analytics, and consulting services.

How the Company Makes MoneyEverest Group makes money primarily through the sale of their research reports, subscription-based access to data and analytics platforms, and consulting services. The company generates revenue by providing market intelligence and strategic advisory services to a wide range of clients, including enterprises, service providers, and investors. Key revenue streams include subscription fees for access to their proprietary research and insights, consulting fees for customized advisory services, and event sponsorships and partnerships that facilitate industry networking and thought leadership. Significant factors contributing to Everest Group's earnings include their reputation for in-depth analysis and expertise in global services, as well as their ability to provide actionable insights that drive business transformation and efficiency.

Everest Group Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: -5.93%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Neutral

The earnings call for Everest Group Ltd. highlighted strong growth in property lines and international markets, successful share repurchases, and robust operating income despite catastrophe losses. However, challenges were noted with the elevated combined ratio due to catastrophic events, a decline in casualty written premium, and increased attritional loss ratios. The sentiment is balanced with notable achievements in property and international markets, but challenges remain in specific areas such as casualty and aviation losses.

Q1-2025 Updates

Positive Updates

Growth in Property Lines

Total premiums increased from the prior year, driven by approximately 16% growth in property lines or 8% excluding reinstatement premiums. At the April renewal, the book grew by 5%, led by property growth of 15%.

Strong International Insurance Business

The international insurance business turned a modest profit in the quarter despite continued meaningful investment in people and technology. Strong growth in key markets at attractive loss ratios.

Share Repurchases

Everest repurchased $200 million of shares in the quarter at an average price just over $348 per share, consistent with their commitment to delivering value to shareholders.

Operating Income Despite Catastrophes

Everest delivered $276 million of operating income despite significant catastrophe loss activity in the first quarter.

Improvements in Book Value Per Share

Book value per share ended the quarter at $332.39, an improvement of 3.5% from year-end 2024 when adjusted for dividends.

Negative Updates

Elevated Combined Ratio Due to Catastrophic Events

The combined ratio is elevated at 102.7% due to California wildfire and aviation losses. Catastrophe losses contributed 13.9 points to the combined ratio.

Decline in Casualty Written Premium

Pro-rata written premium was down almost 22% in the quarter, driven by the portfolio actions taken since the January 1st, 2024, renewal.

Attritional Loss Ratio Increase

The Group attritional loss ratio was 62.2%, a 330 basis point increase over the prior year's quarter, driven by aviation losses and conservative loss picks in U.S. casualty lines.

Flat Insurance Written Premium

Insurance written premium in the quarter was down 1.3% from the prior year, with property lines growing 19% but offset by a 15% decline in the third-party book due to U.S. casualty portfolio remediation.

Aviation Losses Impact

Aviation losses of $70 million, net of recoveries and reinstatement premiums, contributed 2 points to the attritional loss ratio.

Company Guidance

During the Everest Group's first quarter 2025 earnings call, the management provided guidance on several key metrics, reflecting the company's strategic focus and market conditions. The combined ratio for the quarter stood at 102.7%, impacted by catastrophic events such as the California wildfires and aviation losses. Total group written premium was $4.4 billion, mirroring Q1 2024. The reinsurance division saw a 16% growth in property lines, while the insurance division faced a 1.3% decline in written premiums due to a 15% reduction in the third-party book. Notably, catastrophe losses contributed 13.9 points to the combined ratio, with California wildfires alone accounting for $440 million. Everest's attritional loss ratio was 62.2%, with aviation losses adding 2 points. The company repurchased $200 million in shares at an average price of $348 per share, indicating a commitment to shareholder value. Everest's overall reserve position improved, and the company projected moderate catastrophe pricing pressure for the remainder of 2025, with opportunities for capital deployment at attractive returns.

Everest Group Financial Statement Overview

Summary

Everest Group exhibits strong financial stability with robust revenue growth, efficient cash flow management, and a solid balance sheet. The absence of EBIT/EBITDA raises concerns about operational profitability measurement, but overall financial health is commendable.

Income Statement

Positive

Everest Group has demonstrated strong revenue growth with a 18.45% increase from 2023 to 2024. The company maintains a high Gross Profit Margin as Gross Profit equates to Total Revenue, indicative of efficient cost management. However, the absence of EBIT and EBITDA in 2024 suggests potential concerns in operational profitability measurement.

Balance Sheet

Positive

The company shows a strong equity position with an increasing Stockholders' Equity, reaching $13.88 billion in 2024. The Debt-to-Equity ratio is favorable with zero total debt in 2024, indicating low leverage risk. The Equity Ratio improved to 24.62% in 2024, suggesting a solid financial foundation.

Cash Flow

Very Positive

Everest Group's cash flow is robust, with a consistent increase in Free Cash Flow, growing by 8.87% from 2023 to 2024. The Operating Cash Flow to Net Income ratio is strong, indicating efficient conversion of income into cash. This highlights financial stability and effective cash management.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
17.39B	17.08B	14.59B	11.98B	11.30B	9.49B
	Gross Profit
17.39B	17.08B	14.59B	11.98B	11.30B	9.49B
	EBIT
716.00M	1.64B	2.31B	689.00M	1.62B	621.67M
	EBITDA
22.00M	1.70B	-23.50M	0.00	0.00	0.00
	Net Income Common Stockholders
850.00M	1.37B	2.52B	597.00M	1.38B	514.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.52B	6.26B	1.44B	24.67B	24.93B	21.98B
	Total Assets
58.13B	56.34B	49.40B	39.97B	38.19B	32.79B
	Total Debt
0.00	3.59B	3.41B	3.08B	3.09B	1.91B
	Net Debt
-1.57B	2.04B	1.97B	1.69B	1.65B	1.11B
	Total Liabilities
43.99B	42.47B	36.20B	31.52B	28.05B	23.06B
	Stockholders Equity
14.14B	13.88B	13.20B	8.44B	10.14B	9.73B
Cash Flow		Free Cash Flow
4.89B	4.96B	4.55B	3.69B	3.83B	2.87B
	Operating Cash Flow
4.89B	4.96B	4.55B	3.69B	3.83B	2.87B
	Investing Cash Flow
-4.31B	-4.48B	-5.90B	-3.42B	-3.87B	-3.68B
	Financing Cash Flow
-554.00M	-383.00M	1.41B	-359.00M	674.19M	800.22M

Everest Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price335.59

Price Trends

50DMA

347.96

Negative

100DMA

348.00

Negative

200DMA

359.68

Negative

Market Momentum

MACD

-2.86

Positive

RSI

42.91

Neutral

STOCH

31.16

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EG, the sentiment is Negative. The current price of 335.59 is below the 20-day moving average (MA) of 342.49, below the 50-day MA of 347.96, and below the 200-day MA of 359.68, indicating a bearish trend. The MACD of -2.86 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 31.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EG.

Everest Group Risk Analysis

Everest Group disclosed 38 risk factors in its most recent earnings report. Everest Group reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 3 New Risks

We may require additional capital or financing sources in the future, which may not be available or may be available only on unfavorable terms. Q4, 2024

Unfavorable loss development may adversely affect our business, financial condition, results of operations or liquidity. Q4, 2024

We rely on our processes, people and systems to maintain our operations and manage the operational risks inherent to our business. Any errors, omissions or misconduct by our employees or third-party agents in the execution of these processes could adversely affect our business, results of operations and financial condition. Q4, 2024

Everest Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNR	80 Outperform	$11.91B	7.79	16.30%	0.64%	32.10%	-30.52%
HG	80 Outperform	$2.15B	6.55	14.07%	―	35.36%	-3.34%
RGA	78 Outperform	$13.51B	17.27	7.60%	1.72%	1.60%	-7.50%
CBOE	78 Outperform	$24.22B	30.32	18.93%	1.05%	15.76%	1.97%
SPNT	71 Outperform	$2.31B	19.63	7.20%	―	-5.57%	-44.54%
EG	70 Outperform	$14.62B	17.34	6.12%	2.33%	12.81%	-70.56%
Sector *	64 Neutral	$12.77B	9.79	7.55%	17015.06%	12.20%	-6.98%

* Financial Sector Average

Performance Comparison

Everest Group

335.59

-44.55

-11.72%

CBOE

Cboe Global Markets

225.99

53.38

30.93%

RGA

Reinsurance Group

200.69

-5.75

-2.79%

RNR

Renaissancere Holdings

239.69

13.59

6.01%

SPNT

SiriusPoint

19.52

6.48

49.69%

Hamilton Insurance Group, Ltd. Class B

20.89

3.51

20.20%

Everest Group Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Everest Group Appoints Darryl Page to Board

Positive

May 20, 2025

Everest Group, Ltd. announced the appointment of Darryl Page as an independent, non-executive member of its Board of Directors, effective May 15, 2025. Mr. Page, a seasoned insurance executive with over four decades of experience, is expected to bring valuable expertise in scaling profitable insurance businesses and developing high-performing cultures, enhancing Everest’s strategic value creation initiatives.

The most recent analyst rating on (EG) stock is a Hold with a $390.00 price target. To see the full list of analyst forecasts on Everest Group stock, see the EG Stock Forecast page.

Executive/Board ChangesShareholder Meetings

Everest Group Holds Annual Shareholder Meeting

Neutral

May 16, 2025

On May 14, 2025, Everest Group, Ltd. held its Annual General Meeting of Shareholders where several key decisions were made. The shareholders elected a slate of directors, appointed KPMG as the independent registered public accounting firm for the fiscal year ending December 31, 2025, approved the 2024 compensation for the Company’s Named Executive Officers, and endorsed the 2025 Employee Stock Purchase Plan and amendments to the Company’s bye-laws.

The most recent analyst rating on (EG) stock is a Hold with a $390.00 price target. To see the full list of analyst forecasts on Everest Group stock, see the EG Stock Forecast page.

Executive/Board Changes

Everest Group Approves Executive Compensation Awards

Neutral

Mar 4, 2025

On February 26, 2025, Everest Group’s Compensation Committee approved significant compensation awards for its executive officers. Jim Williamson, the President and CEO, received a one-time restricted stock award valued at $2.5 million, while Mark Kociancic, the Executive Vice President and CFO, received a $1.5 million award. Additionally, Mr. Kociancic’s target annual incentive bonus was increased to 175%, and the target value of his equity compensation was raised to $2.5 million.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.