Fact based stock research
Hanover Insurance Group (NYSE:THG)

US4108671052

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Hanover Insurance Group stock research in summary

hanover.com

ANALYSIS: With an Obermatt Combined Rank of 96 (better than 96% compared with investment alternatives), Hanover Insurance Group (Property & Casualty Insurance, USA) shares have much better financial characteristics than comparable stocks. Shares of Hanover Insurance Group are a good value (attractively priced) with a consolidated Value Rank of 85 (better than 85% of alternatives), show above-average growth (Growth Rank of 59), and are safely financed (Safety Rank of 86), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 96, is a strong buy recommendation based on Hanover Insurance Group's financial characteristics. As the company Hanover Insurance Group's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 85), above-average growth (Obermatt Growth Rank of 59), and indicate that the company is safely financed (Obermatt Safety Rank of 86), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Hanover Insurance Group. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	85
Growth Rank	59
Safety Rank	86
Combined Rank	96

Country	USA
Industry	Property & Casualty Insurance
Index	D.J. US Insurance, S&P MIDCAP
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Hanover Insurance Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	33	67	68	85
GROWTH
GROWTH	70	23	5	59
SAFETY
SAFETY	27	86	86	86
SENTIMENT
SENTIMENT	n/a	53	34	^new
360° VIEW
360° VIEW	n/a	43	12	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Hanover Insurance Group is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	33	67	68	85
GROWTH
GROWTH	70	23	5	59
SAFETY
SAFETY	27	86	86	86
COMBINED
COMBINED	42	96	96	96

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Hanover Insurance Group the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 85 (better than 85% compared with alternatives) for 2022, Hanover Insurance Group shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Hanover Insurance Group. Price-to-Sales is 74 which means that the stock price compared with what market professionals expect for future sales is lower than for 74% of comparable companies, indicating a good value for Hanover Insurance Group's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 58% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56. Compared with other companies in the same industry, dividend yields of Hanover Insurance Group are expected to be higher than for 71% of all competitors (a Dividend Yield rank of 71). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 85, is a buy recommendation based on Hanover Insurance Group's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Hanover Insurance Group based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	42	69	78	74
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	43	48	52	58
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	29	41	40	56
DIVIDEND YIELD
DIVIDEND YIELD	46	69	72	71
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	33	67	68	85

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Hanover Insurance Group; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 59 (better than 59% compared with alternatives), Hanover Insurance Group shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Hanover Insurance Group. Profit Growth has a rank of 96, which means that currently professionals expect the company to grow its profits more than 96% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 59 (above 59% of alternative investments). But Sales Growth has a below the median rank of 27, which means that, currently, professionals expect the company to grow less than 73% of its competitors, and Capital Growth also has a lower rank of 45. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 59, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Hanover Insurance Group. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	50	49	34	27
PROFIT GROWTH
PROFIT GROWTH	30	17	8	96
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	29	45
STOCK RETURNS
STOCK RETURNS	71	55	13	59
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	70	23	5	59

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Hanover Insurance Group.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 86 (better than 86% compared with alternatives) for 2022, the company Hanover Insurance Group has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Hanover Insurance Group is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Hanover Insurance Group. Leverage is at a rank of 66, meaning the company has a below-average debt-to-equity ratio. It has less debt than 66% of its competitors. Liquidity is also good at a rank of 83, meaning the company generates more profit to service its debt than 83% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 6, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 86 (better than 86% compared with alternatives), Hanover Insurance Group has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Hanover Insurance Group. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Hanover Insurance Group and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	43	56	57	66
REFINANCING
REFINANCING	14	6	6	6
LIQUIDITY
LIQUIDITY	59	84	83	83
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	27	86	86	86

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Hanover Insurance Group and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	68	83	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	79	69	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	19	24	^new
MARKET PULSE
MARKET PULSE	n/a	34	15	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	53	34	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Hanover Insurance Group.
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