Hanover Insurance Group (THG) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Hanover Insurance Group

NYSE•Financial Services•Insurance - Property & Casualty

$231.76-1.07(<0.01%)Pre-market

Market Cap

$8.11B

P/E

10.7x

P/S

1.2x

P/B

2.2x

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.

How this company scores

ExcellentMetricSide Score: 85/100

Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (17/25).

Profitability22/25

Growth21/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality25/25

Strengths

Rising free cash flowStrong marginsHigh ROERising earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 10.7x5y range 8.4x – 122.8x

Currently near its 17-quarter median.

P/S · 1.2x5y range 0.7x – 1.2x

Currently above its 20-quarter median.

P/B · 2.2x5y range 1.5x – 2.2x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Leverage Risk

Watch

Debt-to-equity has risen 99.9% recently — increasing financial risk even if the current ratio is manageable.

Price & Volume

Market Cap $8.11B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $6.76B
Q. Revenue: $1.73B
TTM EBITDA: $1.04B
TTM Op. Income: $1.04B
Q. Op. Income: $251.90M
TTM Net Income: $755.60M
Q. Net Income: $191.60M
EPS: $5.48
Shares Out.: $35.00M

$6.76B in TTM revenue grew 5.6% YoY, reaching $1.73B last quarter. TTM EBITDA of $1.04B and TTM operating income of $1.04B show growth is flowing through to the bottom line. TTM net income of $755.60M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 14.7%
Op. Margin: 14.6%
Net Margin: 11.1%

Op. margin of 14.6% is up 1.9% YoY — cost efficiency is improving. Net margin at 11.1% Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 10.7x
P/S Ratio: 1.2x
P/B Ratio: 2.2x

At 10.7x P/E, the stock trades below typical market levels. P/S of 1.2x and P/B of 2.2x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is down 2% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $16.86B
Cash: $266.10M
Long-Term Debt: $793.90M
Book Value: $3.67B
D/E Ratio: 0.2
Debt/EBITDA: 3.1

With $16.86B in assets and $793.90M in long-term debt, D/E is 0.2and book value is $3.67B — a conservative capital structure with a cushion to weather downturns. Across the last 7 quarters, debt/equity has fallen for 3 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $212.30M
TTM Free Cash Flow: $1.25B
FCF Margin: 18.5%
FCF / Net Income: 1.7

TTM FCF of $1.25B on $212.30M in operating cash flow. The FCF / Net Income ratio of 1.7x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 5 consecutive quarters — an improving trend.