Home Sectors Financial Services Present Fundamentals: Hanover Insurance Group Inc (NYSE: THG)

Present Fundamentals: Hanover Insurance Group Inc (NYSE: THG)

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Hanover Insurance Group Inc is part of the property and casualty insurance industry and is part of the financial services sector. The company CEO is John C. Roche. The Hanover Insurance Group Inc is a holding company. The company is engaged in providing property and casualty insurance products and services to businesses, individuals, and families through a group of independent agents and brokers.

Previous Intraday Trading Performance:

The THG stock showed a previous change of -0.05% with an open at 124.55 and a close of 123.98. It reached an intraday high of 125.25 and a low of 123.49.

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Liquidity:

The stock has a market cap of $5.0b with 40.7m shares outstanding, of which the float is 39.6m shares. Trading volume reached 157,817 shares compared to its average volume of 209,591 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Hanover Insurance Group Inc shares returned 1.70% and in the past 30 trading days it returned 5.88%. Over three months, it changed 3.87%. In one year it has changed 10.49% and within that year its 52-week high was 131.44 and its 52-week low was 104.59. THG stock is 18.54% above its 52 Week Low.

Our calculations show a 200 day moving average of 113.46 and a 50 day moving average of 118.93. Currently THG stock is trading 9.27% above its 200 day moving average.

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Earnings:

The last annual fiscal EPS for the company was reported at 9.09 that ended on 31st of December 2018, which according to the previous close, that is a PE of 13.64. Based on 1 analyst estimate, the estimated EPS for the next quarter is 1.79. The TTM EPS is 7.63, which comes to a TTM PE of 16.25. Historically, the PE high was 30.40 and the PE low was 9.50. If the stock reached its PE low, that would represent a price of 72.48, which is a decrease of -41.54%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/01/2019): 2.97
4thQtr of 2018 (Reported on 01/30/2019): 2.88
3rdQtr of 2018 (Reported on 10/31/2018): 2.33
2ndQtr of 2018 (Reported on 08/01/2018): 2.31
1stQtr of 2018 (Reported on 05/02/2018): 1.57

The dividend per share is currently 2.40, which is a dividend yield of 1.94%. Also, the payout ratio is 31.45%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 137.52, which means it is possibly undervalued and has a margin of safety of 9.85%.

Indicators to Watch:

Short-interest was 730,970, which was 1.80% of shares outstanding. The short-interest ratio or days-to-cover ratio was 2.89. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.64.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 15.97%, return on assets is 3.43%, profit margin is 9.26%, price-to-sales is 1.04 and price-to-book is 1.72.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 3  :Past Performance Score
 5  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.