Employers Holdings, Inc. has appointed Steve Sorenson to its Board of Directors, effective March 1, 2024. Katherine H. Antonello, President and Chief Executive Officer of Employers Holdings, Inc., expressed enthusiasm about the appointment, stating, "We are very excited to welcome Steve Sorenson to the Employers Holdings, Inc. Board. Steve brings a wealth of knowledge and expertise in areas including transformational leadership, insurance operations, and insurance product development and distribution. We will benefit greatly from Steve’s insights and look forward to his contributions to our Board."
Steve Sorenson, who retired from the Allstate Corporation in April 2023, has held various senior leadership roles, including Executive Vice President of Corporate Business Transformation and Executive Vice President of Operations. He currently serves on the boards of YMCA of Metropolitan Chicago and One Hope United. Sorenson holds a master's degree in business administration (finance and strategy) from the University of Chicago and a bachelor's degree in economics from Harvard University.
Employers Holdings, Inc. is a holding company with subsidiaries that specialize in providing workers' compensation insurance and services to small and select businesses engaged in low-to-medium hazard industries. The company's insurance offerings are provided through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company, and Cerity Insurance Company, all of which are rated A- (Excellent) by the A.M. Best Company.
The company's shares have experienced a 1.4% movement, reaching a trading price of $43.95.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $800,400 | $835,900 | $711,400 | $703,100 | $713,500 | $847,000 |
| Interest Income (k) | $1,500 | $600 | $400 | $500 | $3,500 | $7,200 |
| Net Margins | 18% | 19% | 17% | 17% | 7% | 14% |
| Net Income (k) | $141,300 | $157,100 | $119,800 | $119,300 | $48,400 | $119,700 |
| Depreciation & Amort. (k) | $6,300 | $9,000 | $8,200 | $7,400 | $5,300 | $4,900 |
| Diluted Shares (k) | 33,311 | 32,540 | 30,205 | 28,601 | 27,681 | 26,118 |
| Earnings Per Share | $4.24 | $4.83 | $3.97 | $4.17 | $1.75 | $4.39 |
| EPS Growth | n/a | 13.92% | -17.81% | 5.04% | -58.03% | 150.86% |
| Avg. Price | $35.67 | $36.33 | $29.68 | $35.58 | $37.43 | $43.32 |
| P/E Ratio | 8.3 | 7.43 | 7.4 | 8.43 | 21.27 | 9.8 |
| Free Cash Flow (k) | $170,000 | $110,400 | $27,500 | $7,200 | $97,200 | $52,200 |
| CAPEX (k) | $10,200 | $12,100 | $5,500 | $3,600 | $2,600 | $1,900 |
Employers stock, priced at $43.95, appears overvalued due to several key factors. On the positive side, the company has maintained stable revenues with a yearly growth rate of 0.7% and strong net margins, averaging 15.33% over the last six years, outperforming the industry average. Moreover, the firm has sustained its earnings per share growth rate of 0.6% through share buybacks and a decrease in the number of shares outstanding, indicating management's commitment to shareholder value.
However, there are several concerning negatives to consider. Firstly, Employers' capital expenditures are decreasing at a significant rate of -29.8%, potentially impacting the company's long-term growth prospects. Additionally, the firm's net margins are shrinking at an average yearly rate of -4.0%, signaling potential profitability challenges in the future. Furthermore, the negative PEG ratio suggests that the stock may be overvalued relative to its growth prospects.
In terms of value factors, Employers' free cash flows have shown a negative growth rate of -17.9% over the last five years and a high year-on-year growth variability coefficient of 344.22%. This indicates inconsistency in the company's ability to generate stable and sustainable cash flows.
