Erie Indemnity Company (ERIE) AI Stock Analysis

• Market Cap: $16.30B
• Dividend Yield: 1.53%
• Average Volume (3M): 147.46K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.44
• Revenue Growth: 12.19%
• EPS Growth: 17.82%
• Country: US
• Employees: 6,715
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Brokers
• EPS (TTM): 3.34
• Shares Outstanding: 46,189,068
• 10 Day Avg. Volume: 131,574
• 30 Day Avg. Volume: 147,455
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 4.93
• Enterprise Value/Gross Profit: 6.54
• Enterprise Value/Ebitda: 24.69
• 1Y Price Target: $385.00
• Price Target Upside: 9.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: $385.00 ▲(9.57% Upside)

Erie Indemnity Company scores well due to its strong financial performance and resilience in the face of operational challenges. However, the stock's technical indicators suggest a bearish trend, and its valuation appears high relative to peers. The mixed sentiment from the earnings call and recent corporate events also contribute to a moderate overall score.

Positive Factors

Efficiency

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

Financial Performance

The combination of growing management fee income and investment income should allow Erie Indemnity to maintain a positive earnings performance through 2025.

Growth

Erie's organic growth was in the high single digits, which is above other P&C distributors.

Negative Factors

Margins

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

Security Incident

New business was impacted by the June info security incident, and growth would have been higher in the quarter otherwise.

Erie Indemnity Company Business Overview & Revenue Model

Company Description

Erie Indemnity Company (ERIE) is a publicly traded company based in Erie, Pennsylvania, primarily operating in the insurance sector. It serves as the management company for the Erie Insurance Exchange, offering a range of insurance products including auto, home, life, and commercial insurance. ERIE is known for its commitment to customer service and operates through a network of independent agents, providing tailored insurance solutions to its policyholders.

How the Company Makes Money

Erie Indemnity Company generates revenue primarily through its management fee, which is a percentage of the premiums collected by the Erie Insurance Exchange. This fee is charged for managing the exchange's underwriting operations and claims management. In addition to management fees, ERIE earns income from investment activities, where it invests the premiums received before claims are paid out. The company also benefits from its strong partnerships with independent agents, which help drive policy sales and enhance customer reach. Furthermore, ERIE's focus on customer retention and satisfaction contributes to a stable revenue stream, as long-term policyholders renew their insurance coverage.

Erie Indemnity Company Financial Statement Overview

Summary

Erie Indemnity Company displays a commendable financial position with consistent revenue growth, excellent profitability, and a strong balance sheet free from debt. The cash flow generation is solid, enhancing the company's financial flexibility and resilience.

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	3.62B	3.86B	3.27B	2.85B	2.67B	2.54B
Gross Profit	2.73B	676.46M	560.53M	387.29M	353.73M	371.02M
EBITDA	723.23M	821.19M	568.01M	430.18M	429.63M	378.85M
Net Income	624.96M	600.31M	446.06M	298.57M	297.86M	293.30M
Balance Sheet
Total Assets	3.13B	2.89B	2.47B	2.24B	2.24B	2.12B
Cash, Cash Equivalents and Short-Term Investments	391.27M	319.44M	226.07M	166.36M	222.10M	178.94M
Total Debt	0.00	7.51M	112.25M	122.50M	93.83M	95.86M
Total Liabilities	943.67M	901.36M	809.13M	791.05M	899.58M	929.07M
Stockholders Equity	2.18B	1.99B	1.66B	1.45B	1.34B	1.19B
Cash Flow
Free Cash Flow	564.03M	486.40M	288.56M	298.95M	253.99M	287.07M
Operating Cash Flow	688.32M	611.25M	381.20M	366.15M	402.79M	342.60M
Investing Cash Flow	-283.85M	-226.91M	-157.56M	-106.92M	-185.49M	-243.22M
Financing Cash Flow	-217.08M	-230.00M	-221.68M	-300.84M	-194.84M	-274.87M

Erie Indemnity Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 351.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 351.36 is below the 20-day moving average (MA) of 359.42, below the 50-day MA of 353.68, and below the 200-day MA of 385.30, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.78 is Neutral, neither overbought nor oversold. The STOCH value of 6.28 is Positive, 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
AON	78 Outperform	$79.57B	30.90	37.99%	0.78%	18.42%	-4.44%
BRO	76 Outperform	$31.68B	27.70	11.27%	0.62%	11.68%	-0.17%
AJG	73 Outperform	$76.97B	45.25	9.49%	0.83%	15.03%	28.86%
ERIE	70 Outperform	$16.30B	29.51	31.14%	1.53%	12.19%	17.82%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
MMC	67 Neutral	$101.48B	24.78	28.33%	1.62%	9.22%	3.05%
WTW	65 Neutral	$32.58B	233.41	1.57%	1.10%	1.27%	-84.75%

Erie Indemnity Company Corporate Events

Erie Indemnity Declares Quarterly Dividend Amid Income Growth

On July 29, 2025, Erie Indemnity Company‘s Board of Directors declared a quarterly dividend of $1.365 per share on its Class A common stock, payable on October 21, 2025. The company reported a net income of $174.7 million for the second quarter of 2025, an increase from $163.9 million in the same period in 2024. For the first half of 2025, net income was $313.1 million, up from $288.5 million in the first half of 2024. Operating income and management fee revenue both saw significant increases, driven by growth in direct and affiliated assumed written premium. Investment income also rose, contributing to the overall financial growth.

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.