Erie Indemnity Company (ERIE) AI Stock Analysis

• Market Cap: $16.15B
• Dividend Yield: 1.6%
• Average Volume (3M): 135.42K
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.30
• Revenue Growth: 15.05%
• EPS Growth: 26.80%
• Country: US
• Employees: 6,715
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Brokers
• EPS (TTM): 2.65
• Shares Outstanding: 46,189,068
• 10 Day Avg. Volume: 122,015
• 30 Day Avg. Volume: 135,422
• PEG Ratio: 0.64
• Price to Book (P/B): 6.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.45
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 3.27
• 1Y Price Target: $398.00
• Price Target Upside: 14.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $379.00 ▲(8.83%Upside)

Erie Indemnity's strong financial performance and effective management of recent corporate events are the primary strengths supporting its stock score. While technical indicators suggest current challenges, and valuation metrics indicate potential overvaluation, these are partially offset by the company's overall financial health and strategic growth initiatives.

Positive Factors

Growth

Erie's growth continued to normalize but remains above average, signaling strong performance compared to peers.

Technology

Investments in technology efficiency have led to a rise in the policy issuance margin, with technology expected to continue driving down expenses.

Negative Factors

Margins

The margin came in modestly down year-over-year due to investments in technology and higher agent commissions.

Erie Indemnity Company Business Overview & Revenue Model

Company Description

Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. The company provides sales, underwriting, policy issuance, and renewal services for the policyholders on behalf of the Erie Insurance Exchange. It also offers sales related services, including agent compensation, and sales and advertising support services; and underwriting services comprise underwriting and policy processing; and other services consist of customer services and administrative support services, as well as information technology services. Erie Indemnity Company was incorporated in 1925 and is based in Erie, Pennsylvania.

How the Company Makes Money

Erie Indemnity Company makes money primarily through its role as a management company for the Erie Insurance Group. The company generates revenue by providing sales, underwriting, claims, and policy administration services to the group’s member companies. A significant portion of its earnings comes from management fees calculated as a percentage of the direct written premiums of Erie Insurance Exchange, the reciprocal insurer that ERIE manages. Additionally, ERIE earns investment income from its portfolio, which includes a range of fixed-income securities and other financial instruments. The company’s strong relationships with independent agents and its focus on customer retention and service quality contribute to its financial performance.

Erie Indemnity Company Financial Statement Overview

Summary

Erie Indemnity Company exhibits strong financial performance with consistent revenue growth, excellent profit margins, and a robust balance sheet free from debt. The company has a strong return on equity and a solid cash flow position, enhancing its financial flexibility.

Income Statement

Erie Indemnity Company demonstrates consistent revenue growth with a TTM increase of 2.8% from the previous year. The company maintains a strong gross profit margin of 51.1% and a net profit margin of 18.5% in the TTM. EBIT and EBITDA margins are stable, indicating efficient management of expenses. The company shows resilience with improved profitability metrics.

Balance Sheet

The balance sheet is robust with a high equity ratio of 69.6%, indicating financial stability. The absence of debt and a strong return on equity of 29.7% in the TTM highlight efficient equity utilization and low financial risk. The company maintains a solid asset base and liquidity position.

Cash Flow

The cash flow statement shows healthy free cash flow growth of 4.9% in the TTM. The operating cash flow to net income ratio is favorable at 1.05, indicating strong cash generation from operations. The free cash flow to net income ratio supports the company's ability to generate cash relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.32B	3.86B	3.31B	2.85B	2.67B	2.57B
Gross Profit	1.70B	3.80B	560.53M	387.29M	353.73M	371.02M
EBITDA	525.14M	821.19M	600.23M	430.18M	429.63M	338.16M
Net Income	614.18M	600.31M	446.06M	298.57M	297.86M	293.30M
Balance Sheet
Total Assets	2.97B	2.89B	2.47B	2.24B	2.24B	2.12B
Cash, Cash Equivalents and Short-Term Investments	288.19M	319.44M	226.07M	166.36M	222.10M	178.94M
Total Debt	12.71M	7.51M	112.25M	122.50M	93.83M	95.86M
Total Liabilities	900.88M	901.36M	809.13M	791.05M	899.58M	929.07M
Stockholders Equity	2.07B	1.99B	1.66B	1.45B	1.34B	1.19B
Cash Flow
Free Cash Flow	510.10M	486.40M	288.56M	298.95M	253.99M	287.07M
Operating Cash Flow	642.17M	611.25M	381.20M	366.15M	402.79M	342.60M
Investing Cash Flow	-297.67M	-226.91M	-157.56M	-106.92M	-185.49M	-243.22M
Financing Cash Flow	-228.99M	-230.00M	-221.68M	-300.84M	-194.84M	-274.87M

Erie Indemnity Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 348.26
• 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 ERIE, the sentiment is Negative. The current price of 348.26 is above the 20-day moving average (MA) of 346.16, below the 50-day MA of 353.69, and below the 200-day MA of 405.54, indicating a bearish trend. The MACD of -3.51 indicates Negative momentum. The RSI at 44.06 is Neutral, neither overbought nor oversold. The STOCH value of 52.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ERIE.

Erie Indemnity Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRO	76 Outperform	$34.63B	29.62	16.18%	0.56%	12.57%	10.52%
ERIE	72 Outperform	$16.15B	29.76	32.38%	1.60%	15.05%	26.80%
AON	71 Outperform	$76.09B	30.03	74.17%	0.84%	19.57%	-8.09%
AJG	71 Outperform	$80.77B	48.52	9.27%	0.84%	14.07%	31.44%
MMC	70 Outperform	$105.23B	26.20	30.51%	1.54%	7.56%	3.39%
Sector *	67 Neutral	$16.64B	11.61	9.79%	3.78%	11.89%	-8.13%
WTW	62 Neutral	$30.18B	―	-0.60%	1.21%	2.42%	-103.64%

Erie Indemnity Company Corporate Events

Erie Indemnity Resumes Operations After Security Incident

On July 7, 2025, Erie Indemnity Company announced the successful resumption of full business operations following an information security incident. After a thorough investigation by independent cybersecurity specialists, it was confirmed that no sensitive personal or financial data was compromised. The company expressed gratitude to its teams for their recovery efforts and reaffirmed its commitment to customer service.

Erie Indemnity Faces Information Security Incident

On June 7, 2025, Erie Indemnity Company identified an information security event due to unusual network activity. The company promptly activated its incident response protocols, involved law enforcement, and engaged third-party cybersecurity experts to conduct a forensic analysis. The investigation is ongoing, and the full impact of the event is not yet determined.