Employers Holdings (EIG) AI Stock Analysis

• Market Cap: $843.64M
• Dividend Yield: 3.18%
• Average Volume (3M): 139.56K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.44
• Revenue Growth: 1.69%
• EPS Growth: -52.43%
• Country: US
• Employees: 715
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): -1.10
• Shares Outstanding: 22,479,107
• 10 Day Avg. Volume: 159,467
• 30 Day Avg. Volume: 139,559
• PEG Ratio: 1.86
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 17.95
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 3.99
• Enterprise Value/Ebitda: 12.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $43.00 ▲(12.77% Upside)

Employers Holdings' overall stock score is driven by strong financial performance and a fair valuation. However, technical analysis indicates a bearish trend, and the earnings call highlighted significant challenges with California claims, impacting sentiment. The absence of capital expenditures raises concerns about future growth investments.

Positive Factors

Revenue Growth

Employers Holdings achieved a 7% revenue growth in Q3, driven by increased policy count and premium growth, indicating strong market demand and effective business strategies.

Balance Sheet Health

A debt-free balance sheet enhances financial stability, providing flexibility for strategic initiatives and resilience against economic downturns.

Cash Flow Management

Significant growth in operating cash flow demonstrates robust cash generation, supporting ongoing operations and potential future investments.

Negative Factors

California Claims Challenges

The surge in California cumulative trauma claims necessitates reserve adjustments, impacting profitability and highlighting regional risk exposure.

Reserve Adjustments

Significant reserve strengthening due to claim frequency increases affects financial results, indicating potential volatility in future earnings.

Lack of Capital Expenditures

Without capital expenditures, the company may face challenges in sustaining growth and competitiveness, potentially limiting long-term strategic opportunities.

Employers Holdings Business Overview & Revenue Model

Company Description

Employers Holdings, Inc. (EIG) is a specialty provider of workers' compensation insurance, primarily serving small to mid-sized businesses across various industries in the United States. The company operates through its subsidiaries, offering a range of insurance products and services designed to meet the unique needs of its clients. EIG focuses on delivering value through risk management, claims management, and comprehensive customer support, making it a notable player in the workers' compensation sector.

How the Company Makes Money

Employers Holdings generates revenue primarily through the underwriting of workers' compensation insurance policies. The company collects premiums from policyholders in exchange for providing insurance coverage, which constitutes its main revenue stream. Additionally, EIG earns investment income from the funds it holds, which are derived from accumulated premiums and reserves. The company also engages in risk management services and consulting, providing additional revenue through service fees. Strategic partnerships with agents and brokers help expand its market reach, while efficient claims management practices contribute to profitability by controlling costs associated with claims payouts.

Employers Holdings Financial Statement Overview

Summary

Employers Holdings demonstrates strong financial performance with consistent revenue and profit growth, a robust balance sheet free of debt, and efficient cash flow management. The company is well-positioned in the insurance industry, with stable margins and a strategic cash position. However, the absence of capital expenditures raises questions about future growth investments.

Income Statement

Employers Holdings shows a solid revenue growth rate of 3.51% from 2023 to 2024, indicating a positive trajectory. The company maintains a strong gross profit margin at 100% due to its business model, which is typical in the insurance industry. The net profit margin remains stable at around 13.47% in 2024. However, the absence of EBITDA data for 2024 limits a complete profitability analysis. Overall, the income statement reflects a healthy financial position with consistent growth and profitability.

Balance Sheet

Employers Holdings has a strong balance sheet with no total debt reported in 2024 and a debt-to-equity ratio of 0, indicating no reliance on leverage. The equity ratio of 30.18% in 2024 shows a solid equity base. ROE is stable at 11.10% in 2024, suggesting efficient use of shareholder equity to generate profits. The company's financial stability is reinforced by a significant cash position, enhancing its ability to manage liabilities effectively.

Cash Flow

The company exhibits a significant growth in operating cash flow from 2023 to 2024, increasing by 75.51%, which is a positive indicator of cash-generating capability. The free cash flow to net income ratio is strong at 73.10% in 2024, reflecting efficient cash flow management. However, the absence of capital expenditures in 2024 raises questions about future investment in growth. Overall, the cash flows indicate robust operational performance with strategic cash usage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	904.80M	880.70M	850.90M	713.50M	703.10M	711.40M
Gross Profit	249.60M	323.30M	345.20M	226.60M	311.80M	330.20M
EBITDA	77.50M	150.40M	159.00M	64.60M	154.90M	156.30M
Net Income	62.50M	118.60M	118.10M	48.40M	119.30M	119.80M
Balance Sheet
Total Assets	3.53B	3.54B	3.55B	3.72B	3.78B	3.92B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.02B	913.20M	2.39B	2.43B	2.67B
Total Debt	4.10M	4.20M	5.90M	196.10M	16.60M	39.90M
Total Liabilities	2.49B	2.47B	2.54B	2.77B	2.57B	2.71B
Stockholders Equity	1.04B	1.07B	1.01B	944.20M	1.21B	1.21B
Cash Flow
Free Cash Flow	53.40M	71.50M	47.20M	97.20M	7.20M	27.50M
Operating Cash Flow	57.10M	76.40M	49.40M	99.80M	10.80M	33.00M
Investing Cash Flow	97.40M	-159.70M	377.30M	-146.10M	-1.70M	84.30M
Financing Cash Flow	-131.00M	-74.80M	-289.50M	60.40M	-94.40M	-111.90M

Employers Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EIG, the sentiment is Neutral. The current price of 38.13 is below the 20-day moving average (MA) of 38.64, below the 50-day MA of 40.38, and below the 200-day MA of 44.66, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 64.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EIG.

Employers Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITIC	80 Outperform	$526.46M	14.67	13.12%	5.62%	13.47%	26.15%
AMSF	72 Outperform	$786.69M	15.92	16.95%	11.37%	-1.73%	-18.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EIG	67 Neutral	$843.64M	14.77	5.86%	3.18%	1.69%	-52.43%
HIPO	65 Neutral	$898.26M	-85.19	25.65%	―	34.48%	―
TIPT	60 Neutral	$708.06M	16.51	10.46%	2.60%	4.44%	22.40%
JRVR	54 Neutral	$270.74M	―	-6.97%	0.72%	-19.08%	56.21%

Employers Holdings Corporate Events

Employers Holdings’ Earnings Call: Growth Amid Challenges

During the recent earnings call, Employers Holdings expressed a sentiment of cautious optimism. The company highlighted positive developments such as an increase in gross written premiums and strategic capital returns. However, these were tempered by significant challenges, particularly related to California cumulative trauma claims, which necessitated reserve adjustments and resulted in a quarterly adjusted net loss. The overall sentiment reflects proactive steps being taken to manage these challenges effectively.

Employers Holdings Declares Dividend Amid Financial Adjustments

On October 29, 2025, Employers Holdings, Inc. declared a regular quarterly dividend of $0.32 per share, payable on November 26, 2025. The company also approved a $125 million increase to its share repurchase program, intending to fund this through various debt sources. The third quarter of 2025 saw the company report a net loss of $8.3 million, despite a 1% increase in gross premiums written and a 3% increase in net premiums earned. The company took significant actions to strengthen its reserves, particularly addressing increases in California cumulative trauma claims. The recapitalization plan is expected to optimize capital structure, reduce cost of capital, and enhance shareholder value.

The most recent analyst rating on (EIG) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Employers Holdings stock, see the EIG Stock Forecast page.