The Hanover Insurance Group (THG) Fundamental Analysis: Revenue, Earnings & Valuation

5.89 / 10

Netural

Fundamentals rate neutral with a 5.9/10 score. Strong points include high accounts‑receivable turnover (23.4), robust fixed‑asset turnover, solid current ratio (3.94), and impressive ROE (16.5%). However, Asset‑to‑Market value is negative and profit‑to‑MV is modest, warranting caution.

Analysis Checks(9/10)

Net profit attributable to parent company shareholders / Net profit (%)

Value100.00

Score3/3

Weight9.67%

1M Return2.87%

ROE (diluted) (YoY growth rate %)

Value16.50

Score3/3

Weight20.54%

1M Return5.57%

Profit-MV

Value1.56

Score2/3

Weight3.70%

1M Return1.22%

Accounts receivable turnover ratio

Value23.42

Score3/3

Weight9.37%

1M Return2.73%

Basic earnings per share (YoY growth rate %)

Value56.12

Score2/3

Weight13.05%

1M Return3.72%

Total profit (YoY growth rate %)

Value56.90

Score2/3

Weight11.84%

1M Return3.41%

Fixed assets turnover ratio

Value9306.28

Score3/3

Weight8.62%

1M Return2.53%

Diluted earnings per share (YoY growth rate %)

Value55.21

Score2/3

Weight12.94%

1M Return3.68%

Asset-MV

Value-0.55

Score1/3

Weight1.58%

1M Return0.60%

Current ratio

Value3.94

Score3/3

Weight8.70%

1M Return2.55%

Is THG fundamentally strong?

THG scores 5.89/10 on fundamentals and holds a Fair valuation at present. Backed by its 20.66% ROE, 10.05% net margin, 9.35 P/E ratio, 1.74 P/B ratio, and 56.12% earnings growth, these metrics solidify its Netural investment rating.