Employers Holdings Operating Margin vs. Gross Profit

EIG Stock  USD 51.98  0.61  1.16%   
Based on Employers Holdings' profitability indicators, Employers Holdings' profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Employers Holdings' ability to earn profits and add value for shareholders.

Employers Holdings Operating Profit Margin

0.0908

At this time, Employers Holdings' EV To Sales is most likely to slightly decrease in the upcoming years. The Employers Holdings' current Sales General And Administrative To Revenue is estimated to increase to 0.25, while Operating Cash Flow Sales Ratio is projected to decrease to 0.06. At this time, Employers Holdings' Net Income Applicable To Common Shares is most likely to increase significantly in the upcoming years. The Employers Holdings' current Interest Income is estimated to increase to about 3.3 M, while Income Before Tax is projected to decrease to roughly 131.6 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.20.1388
Way Up
Pretty Stable
Operating Profit Margin0.09080.0956
Notably Down
Very volatile
Pretax Profit Margin0.230.1744
Significantly Up
Slightly volatile
Return On Assets0.03180.0333
Sufficiently Down
Slightly volatile
For Employers Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Employers Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Employers Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Employers Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Employers Holdings over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Employers Stock please use our How to Invest in Employers Holdings guide.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Employers Holdings. If investors know Employers will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Employers Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.246
Dividend Share
1.16
Earnings Share
5.31
Revenue Per Share
35.199
Quarterly Revenue Growth
0.101
The market value of Employers Holdings is measured differently than its book value, which is the value of Employers that is recorded on the company's balance sheet. Investors also form their own opinion of Employers Holdings' value that differs from its market value or its book value, called intrinsic value, which is Employers Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Employers Holdings' market value can be influenced by many factors that don't directly affect Employers Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Employers Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Employers Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Employers Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Employers Holdings Gross Profit vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Employers Holdings's current stock value. Our valuation model uses many indicators to compare Employers Holdings value to that of its competitors to determine the firm's financial worth.
Employers Holdings is rated below average in operating margin category among its peers. It is rated below average in gross profit category among its peers fabricating about  362,026,862  of Gross Profit per Operating Margin. At this time, Employers Holdings' Operating Profit Margin is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Employers Holdings by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Employers Gross Profit vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Employers Holdings

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.16 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Employers Holdings

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
59.3 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Employers Gross Profit Comparison

Employers Holdings is currently under evaluation in gross profit category among its peers.

Employers Holdings Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Employers Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Employers Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Employers Holdings' change in net profit over the period of time. It can combine multiple indicators of Employers Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-86 M-81.7 M
Operating Income559.9 M587.9 M
Income Before Tax148.4 M131.6 M
Total Other Income Expense Net148.4 M155.8 M
Net Income118.1 M83.9 M
Income Tax Expense30.3 M20.3 M
Net Income Applicable To Common Shares43.6 M83.4 M
Net Income From Continuing Ops119.6 M109.2 M
Non Operating Income Net Other-182.1 M-173 M
Interest Income3.1 M3.3 M
Net Interest Income-7.1 M-6.7 M
Change To Netincome48.6 M51.1 M
Net Income Per Share 4.48  4.70 
Income Quality 0.42  0.40 
Net Income Per E B T 0.80  0.98 

Employers Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Employers Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Employers Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Employers Holdings' important profitability drivers and their relationship over time.

Use Employers Holdings in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Employers Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Employers Holdings will appreciate offsetting losses from the drop in the long position's value.

Employers Holdings Pair Trading

Employers Holdings Pair Trading Analysis

The ability to find closely correlated positions to Employers Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Employers Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Employers Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Employers Holdings to buy it.
The correlation of Employers Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Employers Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Employers Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Employers Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Employers Holdings position

In addition to having Employers Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Printing and Publishing Thematic Idea Now

Printing and Publishing
Printing and Publishing Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Printing and Publishing theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Printing and Publishing Theme or any other thematic opportunities.
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When determining whether Employers Holdings is a strong investment it is important to analyze Employers Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Employers Holdings' future performance. For an informed investment choice regarding Employers Stock, refer to the following important reports:
Check out Investing Opportunities.
For more detail on how to invest in Employers Stock please use our How to Invest in Employers Holdings guide.
You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
To fully project Employers Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Employers Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Employers Holdings' income statement, its balance sheet, and the statement of cash flows.
Potential Employers Holdings investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Employers Holdings investors may work on each financial statement separately, they are all related. The changes in Employers Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Employers Holdings's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.