| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 34 | 117.4x | 17.8x | Bottom tier | |
Growth | 9 | -5.8% | 7.1% | Bottom tier | |
Quality | 27 | — | — | Bottom tier | |
Safety | 31 | — | — | Bottom tier | |
Capital Return | 62 | 2.62% | 2.12% | Around median | |
Momentum | 86 | 16.2% | 2.9% | Top tier | |
Sentiment | 50 | 2 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Employers Holdings, Inc. specializes in workers' compensation insurance, with a strategic focus on small businesses as the core segment of its portfolio. The company generates income from insurance policy premiums and returns on its investment portfolio, while expanding its offerings through excess workers' compensation and loss-sensitive products such as the large deductible product. In fiscal Q2 2026, management reflected its priority of profitability over volume by reducing new business and renewals that did not meet required margins, particularly in the middle market and certain targeted geographic areas.
In fiscal Q2 2026, revenue was $220.2 million, net income was $29.1 million, and diluted earnings per share were $1.59, equivalent to a calculated net income margin of approximately 13.2%; the available data does not include a figure for gross profit or gross margin. Diluted earnings per share increased 29% year over year and adjusted earnings per share increased 46%, despite net income remaining nearly flat, supported by a lower share count following repurchases. Meanwhile, net earned premiums declined 12%, gross written premiums fell 20% to $163 million, and policies in force decreased 5%, indicating that the contraction was concentrated more in larger policies within the middle market than in the core policy base.
Underwriting expenses were $40 million in fiscal Q2 2026, down 7% from $43 million, while commission expenses were $22 million compared with $26 million. Net investment income was also $27 million, with the portfolio's average book yield rising to 4.9% from 4.5% and the fixed-income portfolio maintaining an average credit quality of A+. Book value per share, including the deferred gain and dividends, increased 9% year over year to $52.58.
Automated analysis for informational purposes only — not investment advice.
The available analyst consensus is "Buy," but the data does not provide a consensus price target or a high-low target range, so a reliable comparison between the target and the 52-week range of $35.73–$52.59 cannot be made. A published price-to-earnings ratio is also unavailable, and growth in book value per share to $52.58 must be weighed against the 12% decline in net earned premiums and volatility in net income when valuing the stock.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Diluted earnings per share increased 29% year over year, and adjusted earnings per share increased 46%, despite net income remaining nearly flat. The primary driver was the cumulative effect of share repurchases executed since the capital restructuring. In fiscal Q2 2026, the company repurchased 652 thousand shares for $28 million at an average of $42.43 per share.
Employers wrote the product's first policy in June 2026, then received more than 200 submissions and bound 20 policies in July 2026. The July 2026 policies generated $4 million in premiums, giving the company a new growth lever that complements its small-business portfolio. However, management explained that July 1 is a major renewal date for the targeted municipalities and schools and therefore does not expect the same volume to recur every month.
Gross written premiums declined 20% to $163 million from $203 million, while net earned premiums fell 12% and policies in force decreased 5%. Management attributed this to lower new business and renewals, as well as pricing and underwriting decisions intended to protect profitability at the expense of volume. The pressure was concentrated in the middle market, where the company rejected business that did not provide the required margins amid strong competition and pricing behavior it described as irrational in certain areas.
California represents the company's largest market, and its weighting in Employers' portfolio is higher than its weighting across the United States. Management said on the July 30, 2026 call that cumulative trauma claims create greater uncertainty in more recent accident years, so the company follows a highly cautious approach to reserves. The underwriting review of risks associated with this phenomenon had surpassed 50% after beginning in late fiscal 2025.
The company declared a fiscal Q3 2026 dividend of $0.34 per share, consistent with a 6.5% increase implemented in the prior quarter. $113 million also remains under the $125 million share repurchase program, which runs through the end of 2027. In fiscal Q2 2026, repurchases were executed at a 17% discount to opening book value per share including the deferred gain, while quarter-end book value per share was $52.58.
Net investment income was $27 million in fiscal Q2 2026, and the average book yield increased to 4.9% from 4.5% following portfolio rebalancing. The fixed-income portfolio maintains a modified duration of 4.5 years and an average credit quality of A+. On the operating side, employee adoption of AI tools reached 94%, and management linked these tools to improved productivity and the development of the excess workers' compensation and large deductible products.
