The Hanover Insurance Group, Inc. (THG)
Financial Services · NYQ · US
Fundamentals
Valuation and ratings
The Hanover Insurance Group, Inc. trades at USD207.00, which is 128% below the USD471.15 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 51 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 10.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About The Hanover Insurance Group, Inc.
The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services for individuals and businesses in the United States. It operates in four segments: Core Commercial, Specialty, Personal Lines, and Other. The company offers commercial multiple peril, commercial automobile, workers' compensation, and other core commercial coverage; and professional and executive lines, marine, and surety and other, as well as specialty property and casualty products comprising Hanover program business, excess and surplus business, Hanover specialty industrial, and specialty general liability business coverage. It also provides personal automobile; and homeowners and other personal lines, including residences and personal property, liability claims, personal umbrella, inland marine, fire, personal watercraft, personal cyber, and other miscellaneous coverages. In addition, the company offers insurance products for collector cars, motorcycles, off-road vehicles, condominiums, valuable items, business owners, international, and management and professional liability; and for the construction, cultural and educational institutions, financial intuitions, healthcare, human services, life sciences, manufacturing, professional services, real estate, retail, technology, and wholesale and distribution industries. It markets its products and services through independent agents and brokers. The company was formerly known as Allmerica Financial Corp. and changed its name to The Hanover Insurance Group, Inc. in December 2005. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.
THG passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
10 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$175.45M · 0.1% of book
- Thomas Gayner, MARKEL GROUP INC.$97.42M · 0.4% of book
- Joel Greenblatt, Gotham Asset Management, LLC$26.31M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$20.59M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$20.39M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is The Hanover Insurance Group, Inc. (THG) undervalued?
Against our discounted cash flow estimate of USD471.15, THG at USD207.00 is 128% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own THG?
10 of the institutions we track reported a position in THG in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is THG's P/E ratio?
THG trades at 10.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for THG, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.