Erie Indemnity Company (ERIE)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

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

I look for businesses with durable economics and a price that leaves room for error. Erie Indemnity acts as managing attorney-in-fact for the Erie Insurance Exchange, providing issuance and renewal, sales, underwriting, customer service, IT and administrative support. That embedded role with the exchange and its agent network is a real advantage, though it is a service relationship rather than an impenetrable moat. The financials are generally high quality: FairStock calculates ROE of 24.81%, ROCE of 14.15%, D/E of only 0.03, and an Altman Z-score of 8.31. Filed figures show FY2025, the year ended 2025-12-31, revenue of $4.1B and net income of $559.3M, versus FY2024, the year ended 2024-12-31, revenue of $3.8B and net income of $600.3M, and FY2023, the year ended 2023-12-31, revenue of $3.3B and net income of $446.1M. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.1B and net income $180.3M; in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $1.1B and net income $174.7M. FairStock labels ERIE a STALWART, citing 13.8% annual profit growth and 9.9% revenue growth over five years. But at the 2026-10-26 close of $251.30, FairStock's P/E is 22.80, P/B 5.33, PEG 7.17, and Graham Number $108.16, a margin of safety of -134.39%. Piotroski is 4/9, and the FairStock Score is 56/100. Good business, demanding price.

In plain English: Erie Indemnity manages sales, underwriting and administrative services for the Erie Insurance Exchange. The company earns solid profits and carries very little debt, though revenue and profit growth have been modest. At the recent price, the shares look expensive compared with the company's profits and accounting value.

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Data as of 2026-10-26 close · note generated 2026-10-28 · 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