# Hanover Insurance Group Inc (THG) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Financial Services / Insurance. Price $228.38, market value $8.0 billion.

## Valuation
- **P/E (trailing): 10.9×** (5-yr avg 37.8×, 3-yr avg 46.6×). Hanover Insurance Group Inc trades at 10.9× trailing earnings, well below its own five-year average of 37.8×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 11.7×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.21**. A PEG of 0.21 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.2×**. Each dollar of revenue is priced at 1.2×.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 7.8×**. Enterprise value is 7.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 15.8%** (5-yr avg 15.1%). Free cash flow equals 15.8% of the market value, in line with its five-year average of 15.1%. Above 5% is generally attractive.
- **Earnings yield: 9.2%**. The inverse of the P/E: 9.2% of the price is earned each year.

## Profitability
- **Operating margin: 15.4%**. 15.4% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 10.0%**. 10.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 18.5%**. 18.5% on shareholders' equity is solid.
- **Return on invested capital: 22.1%**. Return on all capital, debt included, is 22.1%: comfortably above what that capital costs.
- **Return on assets: 4.5%**. Each dollar of assets produces 4.5% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 5.7%** (3-yr 6.4%/yr, 5-yr 6.4%/yr). Revenue grew 5.7% over the last year, against 6.4% a year compounded over five years.
- **EPS growth (1 yr): 55.2%** (3-yr 78.2%/yr, 5-yr 14.0%/yr). Earnings per share rose 55.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 18.4%/yr**. Free cash flow has compounded at 18.4% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.
- **Cash and short-term investments: $1.1 billion**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 1.66%** ($3.75 per share, trailing). Hanover Insurance Group Inc yields 1.66%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 20%** (11% of free cash flow). 20% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 6.6%/yr** (1-yr 5.8%). The dividend has grown 6.6% a year over five years.

## Price and momentum
- **Total return (1 yr): 28.5%** (YTD 26.3%, 3-mo 18.8%). The shares are up 28.5% over twelve months including dividends.
- **From 52-week high: -3.3%** (37.1% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 57**. An RSI of 57 is neutral.
- **Beta (1 yr): -0.09** (volatility 21%). Beta of -0.09 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=THG · Page: https://foliofundamentals.com/stocks/thg

Not investment advice.