(THG) The Hanover Insurance - Overview
Exchange: NYSE •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US4108671052
Stock: Property, Casualty, Auto, Homeowners, Commercial
Total Rating 49
Risk 67
Buy Signal -0.90
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.07% |
| Yield on Cost 5y | 3.62% |
| Yield CAGR 5y | 6.38% |
| Payout Consistency | 83.9% |
| Payout Ratio | 19.1% |
| Risk 5d forecast | |
|---|---|
| Volatility | 21.1% |
| Relative Tail Risk | -1.56% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.28 |
| Alpha | 3.57 |
| Character TTM | |
|---|---|
| Beta | 0.386 |
| Beta Downside | 0.488 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.55% |
| CAGR/Max DD | 0.38 |
Description: THG The Hanover Insurance January 09, 2026
The Hanover Insurance Group (NYSE:THG) writes a broad range of U.S. property-and-casualty products through four operating segments-Core Commercial, Specialty, Personal Lines, and Other-selling via independent agents and brokers. Its commercial portfolio includes multiple-peril, workers’ compensation, and auto coverages, while the Specialty segment focuses on excess & surplus lines, industrial and general liability programs. Personal Lines deliver auto, homeowners, umbrella, inland-marine, cyber, and other niche coverages.
As of the most recent fiscal quarter, THG reported a combined ratio of 94.1%, indicating underwriting profitability, and generated $1.2 billion in net written premiums, up 5% year-over-year. The company’s earnings per share (EPS) rose 12% to $5.31, driven by a 3% increase in investment income as higher interest rates lifted the yield on its fixed-income portfolio. Key sector drivers include the cyclical nature of P&C pricing, rising climate-related loss exposure, and the sensitivity of investment income to the Federal Reserve’s rate policy.
For a deeper quantitative view, you may find ValueRay’s analyst dashboards useful for tracking THG’s valuation metrics and risk factors.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: 662.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -0.53 > 1.0 |
| NWC/Revenue: 39.67% < 20% (prev 22.79%; Δ 16.88% < -1%) |
| CFO/TA 0.05 > 3% & CFO 799.9m > Net Income 662.5m |
| Net Debt (95.6m) to EBITDA (883.7m): 0.11 < 3 |
| Current Ratio: 7.96 > 1.5 & < 3 |
| Outstanding Shares: last quarter (36.3m) vs 12m ago -0.82% < -2% |
| Gross Margin: 42.26% > 18% (prev 0.20%; Δ 4206 % > 0.5%) |
| Asset Turnover: 40.82% > 50% (prev 40.70%; Δ 0.12% > 0%) |
| Interest Coverage Ratio: 14.23 > 6 (EBITDA TTM 883.7m / Interest Expense TTM 43.2m) |
Altman Z'' 2.23
| A: 0.15 (Total Current Assets 2.98b - Total Current Liabilities 375.0m) / Total Assets 16.95b |
| B: 0.21 (Retained Earnings 3.58b / Total Assets 16.95b) |
| C: 0.04 (EBIT TTM 614.7m / Avg Total Assets 16.11b) |
| D: 0.27 (Book Value of Equity 3.57b / Total Liabilities 13.37b) |
| Altman-Z'' Score: 2.23 = BBB |
What is the price of THG shares?
As of February 09, 2026, the stock is trading at USD 175.97 with a total of 312,258 shares traded.
Over the past week, the price has changed by +0.84%, over one month by -0.45%, over three months by -2.55% and over the past year by +10.93%.
Over the past week, the price has changed by +0.84%, over one month by -0.45%, over three months by -2.55% and over the past year by +10.93%.
Is THG a buy, sell or hold?
The Hanover Insurance has received a consensus analysts rating of 3.71.
Therefor, it is recommend to hold THG.
- StrongBuy: 1
- Buy: 3
- Hold: 3
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the THG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 198.8 | 12.9% |
| Analysts Target Price | 198.8 | 12.9% |
| ValueRay Target Price | 186.9 | 6.2% |
THG Fundamental Data Overview February 08, 2026
P/E Trailing = 9.7167
P/E Forward = 10.4603
P/S = 0.9379
P/B = 1.7522
P/EG = -23.25
Revenue TTM = 6.58b USD
EBIT TTM = 614.7m USD
EBITDA TTM = 883.7m USD
Long Term Debt = 1.28b USD (from longTermDebt, two quarters ago)
Short Term Debt = 375.0m USD (from shortTermDebt, last quarter)
Debt = 1.22b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 95.6m USD (from netDebt column, last quarter)
Enterprise Value = 6.28b USD (6.18b + Debt 1.22b - CCE 1.12b)
Interest Coverage Ratio = 14.23 (Ebit TTM 614.7m / Interest Expense TTM 43.2m)
EV/FCF = 7.92x (Enterprise Value 6.28b / FCF TTM 793.4m)
FCF Yield = 12.63% (FCF TTM 793.4m / Enterprise Value 6.28b)
FCF Margin = 12.06% (FCF TTM 793.4m / Revenue TTM 6.58b)
Net Margin = 10.07% (Net Income TTM 662.5m / Revenue TTM 6.58b)
Gross Margin = 42.26% ((Revenue TTM 6.58b - Cost of Revenue TTM 3.80b) / Revenue TTM)
Gross Margin QoQ = none% (prev 24.50%)
Tobins Q-Ratio = 0.37 (Enterprise Value 6.28b / Total Assets 16.95b)
Interest Expense / Debt = 1.19% (Interest Expense 14.5m / Debt 1.22b)
Taxrate = 23.58% (60.8m / 257.8m)
NOPAT = 469.7m (EBIT 614.7m * (1 - 23.58%))
Current Ratio = 7.96 (Total Current Assets 2.98b / Total Current Liabilities 375.0m)
Debt / Equity = 0.34 (Debt 1.22b / totalStockholderEquity, last quarter 3.57b)
Debt / EBITDA = 0.11 (Net Debt 95.6m / EBITDA 883.7m)
Debt / FCF = 0.12 (Net Debt 95.6m / FCF TTM 793.4m)
Total Stockholder Equity = 3.31b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.11% (Net Income 662.5m / Total Assets 16.95b)
RoE = 19.99% (Net Income TTM 662.5m / Total Stockholder Equity 3.31b)
RoCE = 13.38% (EBIT 614.7m / Capital Employed (Equity 3.31b + L.T.Debt 1.28b))
RoIC = 11.24% (NOPAT 469.7m / Invested Capital 4.18b)
WACC = 6.28% (E(6.18b)/V(7.40b) * Re(7.34%) + D(1.22b)/V(7.40b) * Rd(1.19%) * (1-Tc(0.24)))
Discount Rate = 7.34% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 33.33 | Cagr: 0.14%
[DCF Debug] Terminal Value 83.78% ; FCFF base≈794.5m ; Y1≈729.4m ; Y5≈650.9m
Fair Price DCF = 493.3 (EV 17.43b - Net Debt 95.6m = Equity 17.34b / Shares 35.1m; r=6.28% [WACC]; 5y FCF grow -10.27% → 2.90% )
EPS Correlation: 55.76 | EPS CAGR: 16.55% | SUE: 1.25 | # QB: 1
Revenue Correlation: 94.58 | Revenue CAGR: 6.27% | SUE: 3.01 | # QB: 1
EPS next Quarter (2026-03-31): EPS=4.39 | Chg30d=-0.090 | Revisions Net=+1 | Analysts=6
EPS current Year (2026-12-31): EPS=17.09 | Chg30d=+0.225 | Revisions Net=+0 | Growth EPS=-10.5% | Growth Revenue=+10.2%
EPS next Year (2027-12-31): EPS=18.02 | Chg30d=+0.294 | Revisions Net=-1 | Growth EPS=+5.4% | Growth Revenue=+4.5%
P/E Forward = 10.4603
P/S = 0.9379
P/B = 1.7522
P/EG = -23.25
Revenue TTM = 6.58b USD
EBIT TTM = 614.7m USD
EBITDA TTM = 883.7m USD
Long Term Debt = 1.28b USD (from longTermDebt, two quarters ago)
Short Term Debt = 375.0m USD (from shortTermDebt, last quarter)
Debt = 1.22b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 95.6m USD (from netDebt column, last quarter)
Enterprise Value = 6.28b USD (6.18b + Debt 1.22b - CCE 1.12b)
Interest Coverage Ratio = 14.23 (Ebit TTM 614.7m / Interest Expense TTM 43.2m)
EV/FCF = 7.92x (Enterprise Value 6.28b / FCF TTM 793.4m)
FCF Yield = 12.63% (FCF TTM 793.4m / Enterprise Value 6.28b)
FCF Margin = 12.06% (FCF TTM 793.4m / Revenue TTM 6.58b)
Net Margin = 10.07% (Net Income TTM 662.5m / Revenue TTM 6.58b)
Gross Margin = 42.26% ((Revenue TTM 6.58b - Cost of Revenue TTM 3.80b) / Revenue TTM)
Gross Margin QoQ = none% (prev 24.50%)
Tobins Q-Ratio = 0.37 (Enterprise Value 6.28b / Total Assets 16.95b)
Interest Expense / Debt = 1.19% (Interest Expense 14.5m / Debt 1.22b)
Taxrate = 23.58% (60.8m / 257.8m)
NOPAT = 469.7m (EBIT 614.7m * (1 - 23.58%))
Current Ratio = 7.96 (Total Current Assets 2.98b / Total Current Liabilities 375.0m)
Debt / Equity = 0.34 (Debt 1.22b / totalStockholderEquity, last quarter 3.57b)
Debt / EBITDA = 0.11 (Net Debt 95.6m / EBITDA 883.7m)
Debt / FCF = 0.12 (Net Debt 95.6m / FCF TTM 793.4m)
Total Stockholder Equity = 3.31b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.11% (Net Income 662.5m / Total Assets 16.95b)
RoE = 19.99% (Net Income TTM 662.5m / Total Stockholder Equity 3.31b)
RoCE = 13.38% (EBIT 614.7m / Capital Employed (Equity 3.31b + L.T.Debt 1.28b))
RoIC = 11.24% (NOPAT 469.7m / Invested Capital 4.18b)
WACC = 6.28% (E(6.18b)/V(7.40b) * Re(7.34%) + D(1.22b)/V(7.40b) * Rd(1.19%) * (1-Tc(0.24)))
Discount Rate = 7.34% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 33.33 | Cagr: 0.14%
[DCF Debug] Terminal Value 83.78% ; FCFF base≈794.5m ; Y1≈729.4m ; Y5≈650.9m
Fair Price DCF = 493.3 (EV 17.43b - Net Debt 95.6m = Equity 17.34b / Shares 35.1m; r=6.28% [WACC]; 5y FCF grow -10.27% → 2.90% )
EPS Correlation: 55.76 | EPS CAGR: 16.55% | SUE: 1.25 | # QB: 1
Revenue Correlation: 94.58 | Revenue CAGR: 6.27% | SUE: 3.01 | # QB: 1
EPS next Quarter (2026-03-31): EPS=4.39 | Chg30d=-0.090 | Revisions Net=+1 | Analysts=6
EPS current Year (2026-12-31): EPS=17.09 | Chg30d=+0.225 | Revisions Net=+0 | Growth EPS=-10.5% | Growth Revenue=+10.2%
EPS next Year (2027-12-31): EPS=18.02 | Chg30d=+0.294 | Revisions Net=-1 | Growth EPS=+5.4% | Growth Revenue=+4.5%