Hanover Insurance Group Inc (THG)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

As a value investor, I look for a durable franchise at a sensible price. Hanover writes property and casualty insurance across commercial and personal lines. In fiscal Q2 2026, the quarter ended 2026-06-30, it reported revenue of $1.7B, net income of $191.6M, and diluted EPS of $5.38. That compares with fiscal Q2 2025, the quarter ended 2025-06-30, when net income was $157.1M and diluted EPS was $4.30. Full-year fiscal 2025 net income was $662.5M, or $18.16 per diluted share, up from $426.0M and $11.70 in fiscal 2024. That is real profit progress, though fiscal 2023 net income was only $35.3M, or $0.98 per diluted share, a reminder that underwriting can be volatile. FairStock's calculations show a P/E of 10.65 and P/B of 2.11 based on the 2026-10-13 close of $222.44, with a PEG of 0.48, ROE of 21.88%, debt-to-equity of 0.23, and a Piotroski F-Score of 6/9. The Lynch category is STALWART — steady growth: profit 13.1% a year over five years and revenue 6.4%. I like the low leverage, high ROE, and modest revenue growth. But insurance is a commodity-like business; the moat comes from underwriting discipline, local agency relationships, and scale, not from a patent. The data does not include the combined ratio, CET1, or NIM, so I cannot fully judge underwriting profitability, capital adequacy, or net interest margin. A P/B above 2 demands consistent returns. At roughly 10.6 times trailing earnings, the price seems fair, not bargain-basement. I would want proof that recent underwriting gains are durable, not just a hard market cycle.

In plain English: Hanover Insurance Group sells property and casualty insurance to people and businesses in the United States. It has been profitable, with recent quarterly profit and profit per share above the same quarter a year earlier, and it carries little debt relative to equity. At $222.44, the stock looks reasonably priced against its recent earnings, though insurance results can swing with disasters and reserves.

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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