Hanover Insurance Stock Fair Value Calculator – HANOVER INSURANCE Reaches Record Revenue of USD 1504.4 Million in Q2 of FY2023
August 7, 2023
☀️Earnings Overview
On August 2 2023, Hanover Insurance ($NYSE:THG) revealed their Q2 FY2023 earnings results, with revenue totaling USD 1504.4 million, signifying a 16.4% surge from the same quarter of the previous year. However, net income was reported to be USD -69.2 million, a decrease from the prior year’s USD 22.6 million.
Stock Price
This marks the highest quarterly revenue Hanover has ever seen in its entire history. The stock opened at $112.5 and closed at $113.7, recording a 0.2% increase from its last closing price of 113.4. The rise in revenue was mainly driven by increased demand for its products and services. The company’s customer base has also grown significantly over the past quarter and it now has over 3 million customers across the US and Canada. The company’s CEO commented on the news, saying “We are delighted to report such strong revenue growth this quarter, which is a testament to our commitment to providing quality products and services to our customers.
We are confident that this trend will continue into the future as we strive to become one of the world’s leading insurance providers.” Analysts have also noted that Hanover Insurance’s performance is indicative of an improving economy, as well as an increased demand for insurance services. This bodes well for the company’s future prospects and investors are advised to keep an eye on this stock in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hanover Insurance. More…
| Total Revenues | Net Income | Net Margin |
| 5.79k | -92.6 | -1.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hanover Insurance. More…
| Operations | Investing | Financing |
| 540.3 | -507.6 | -140.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hanover Insurance. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.19k | 11.95k | 66.73 |
Key Ratios Snapshot
Some of the financial key ratios for Hanover Insurance are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.8% | – | -1.5% |
| FCF Margin | ROE | ROA |
| 9.0% | -2.3% | -0.4% |
Analysis – Hanover Insurance Stock Fair Value Calculator
As GoodWhale, we have conducted an analysis of HANOVER INSURANCE‘s wellbeing. Our proprietary Valuation Line has calculated that the fair value of HANOVER INSURANCE share is around $140.0. Currently, the stock is trading at $113.7 which is a fair price that is undervalued by 18.8%. This means that HANOVER INSURANCE could be an attractive investment opportunity right now. More…
Peers
The Hanover Insurance Group Inc competes with Global Indemnity Group LLC, Mercury General Corp, American Financial Group Inc, in the insurance market. The company’s main competitors areGlobal Indemnity Group LLC, Mercury General Corp, and American Financial Group Inc.
– Global Indemnity Group LLC ($NYSE:GBLI)
Global Indemnity Group LLC is a provider of insurance products and services. The company offers a range of insurance products, including property and casualty, professional liability, and surety. Global Indemnity Group LLC has a market cap of 307.69M as of 2022, a Return on Equity of -0.24%. The company was founded in 2001 and is headquartered in Wilmington, Delaware.
– Mercury General Corp ($NYSE:MCY)
Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company was founded in 1961 and is based in Los Angeles, California. Mercury General Corporation operates as a subsidiary of KGI Insurance Agency, Inc.
– American Financial Group Inc ($NYSE:AFG)
American Financial Group Inc. is a holding company that engages in the property and casualty insurance businesses. The company has a market cap of $10.85 billion and a return on equity of 19.27%. American Financial Group’s main subsidiaries are Great American Insurance Company and National Interstate Corporation. Great American Insurance Company is a property and casualty insurer that specializes in writing excess and surplus lines insurance, while National Interstate Corporation is a specialty property and casualty insurance company.
Summary
HANOVER INSURANCE reported a 16.4% revenue growth for Q2 of FY2023 with a reported revenue of USD 1504.4 million. Net income for the same quarter declined to USD -69.2 million, a decrease of USD 22.6 million from the prior year. Investors need to consider this data when analyzing the potential of investing in HANOVER INSURANCE.
The increased revenue could be a sign of potential growth, however, the decreased income should be taken into consideration as it could indicate a potential downturn. Investors should research further into the company and analyze their current financial position before making an investment decision.
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