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

US4108671052

How to read the ranks

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 78 (better than 78% of alternatives), are safely financed (Safety Rank of 86, which means low debt burdens), but show below-average growth (Growth Rank of 47). ...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 exhibit good value (Obermatt Value Rank of 78) but low growth (Obermatt Growth Rank of 47) while being safely financed (Obermatt Safety Rank of 86), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 78% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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	78
Growth Rank	47
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.

18-Apr-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	78
GROWTH
GROWTH	70	23	5	47
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: 18-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. 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	78
GROWTH
GROWTH	70	23	5	47
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 78 (better than 78% 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 60% 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 52. Compared with other companies in the same industry, dividend yields of Hanover Insurance Group are expected to be higher than for 74% of all competitors (a Dividend Yield rank of 74). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 78, 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	60
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	29	41	40	52
DIVIDEND YIELD
DIVIDEND YIELD	46	69	72	74
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	33	67	68	78

Last update of Value Rank: 18-Apr-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 47 (better than 47% compared with alternatives), Hanover Insurance Group shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Hanover Insurance Group. While Profit Growth has a good rank of 96, as professionals currently expect the company to grow its profits more than 96% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 43, which means that currently professionals expect the company to grow less than 57% of its competitors, while Capital Growth has a rank of 43 and Stock Returns have been below market median, with a rank of 21 (79% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 47, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. 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 limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	50	49	34	43
PROFIT GROWTH
PROFIT GROWTH	30	17	8	96
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	29	43
STOCK RETURNS
STOCK RETURNS	71	55	13	21
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	70	23	5	47

Last update of Growth Rank: 18-Apr-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 62, meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% 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	62
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: 18-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Hanover Insurance Group.
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