Employers Holdings Inc Common Stock (EIG)

FairStock Score: 19/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Employers Holdings as a specialized workers' compensation insurer for small, low-to-medium hazard businesses. Insurance is a commodity; the moat comes from underwriting discipline, claims handling, and agency ties, not brand. Here the numbers show no durable moat. FairStock's calculated ROE is only 0.77% and ROCE 0.19%, far below what I want from a financial company. Filed results are erratic: in FY2023, the year ended 2023-12-31, net income was $118.1M; in FY2024, the year ended 2024-12-31, it was $118.6M; but in FY2025, the year ended 2025-12-31, it collapsed to $10.8M. In fiscal Q3 2025, the quarter ended 2025-09-30, net income was -$8.3M. Then in fiscal Q1 2026, the quarter ended 2026-03-31, net income was $10.2M, and in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $29.1M on revenue of $220.2M and diluted EPS of $1.59. Still, revenue in fiscal Q2 2026, the quarter ended 2026-06-30, fell from $246.3M in fiscal Q2 2025, the quarter ended 2025-06-30. The balance sheet looks conservative, with D/E of 0.15, and FairStock's P/B is 1.04 at the 2026-10-13 close. But FairStock's P/E is 62.99, the FairStock Score is 19/100, Piotroski is 4/9, and the Lynch category is SLOW GROWER - Shrinking, with profit falling 38.2% a year over five years. The combined ratio, reserve development, CET1, and NIM are not in the data, so underwriting and capital risk cannot be fully judged. At this price, the market assumes a sharp recovery; I need more consistent underwriting profit to call it a bargain.

In plain English: Employers Holdings sells workers' compensation insurance to small businesses. Its profits have swung around and are much lower than a few years ago, and revenue has slipped recently. At the recent stock price, the shares look expensive compared with recent earnings, even though they trade near the value of the company's net assets and pay a modest dividend.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer