ScoreWhy is The Hanover Insurance Group, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.48%
2
The company has declared Positive results for the last 6 consecutive quarters
- PRE-TAX PROFIT(Q) At USD 198.8 MM has Grown at 287.52%
- NET PROFIT(Q) At USD 156.9 MM has Grown at 288.37%
- OPERATING CASH FLOW(Y) Highest at USD 853.7 MM
3
With ROE of 14.39%, it has a fair valuation with a 3.50 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 18.27%, its profits have risen by 172.1% ; the PEG ratio of the company is 0.1
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to The Hanover Insurance Group, Inc. should be less than 10%
- Overall Portfolio exposure to Insurance should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is The Hanover Insurance Group, Inc. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
The Hanover Insurance Group, Inc.
4.21%
1.90
23.70%
S&P 500
20.12%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.44%
EBIT Growth (5y)
0
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
20.74%
Dividend Payout Ratio
20.11%
Pledged Shares
0
Institutional Holding
92.81%
ROCE (avg)
0
ROE (avg)
10.48%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
3.24
EV to EBIT
NA
EV to EBITDA
EV to Capital Employed
3.07
EV to Sales
1.67
PEG Ratio
0.18
Dividend Yield
123.47%
ROCE (Latest)
ROE (Latest)
17.24%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,178.1 MM
ROCE(HY)
Highest at 20.6%
DIVIDEND PER SHARE(HY)
Highest at USD 0
NET SALES(Q)
Highest at USD 1,671.8 MM
RAW MATERIAL COST(Y)
Fallen by 0% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 2.68 %
OPERATING PROFIT(Q)
Highest at USD 272.3 MM
OPERATING PROFIT MARGIN(Q)
Highest at 16.29 %
PRE-TAX PROFIT(Q)
Highest at USD 257.8 MM
NET PROFIT(Q)
Highest at USD 197 MM
EPS(Q)
Highest at USD 5.47
-7What is not working for the Company
INTEREST(Q)
Highest at USD 14.5 MM
Here's what is working for The Hanover Insurance Group, Inc.
Operating Cash Flow
Highest at USD 1,178.1 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 1,671.8 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Dividend per share
Highest at USD 0 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Profit
Highest at USD 272.3 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 16.29 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 257.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 197 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 5.47
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 2.68 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by 0% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for The Hanover Insurance Group, Inc.
Interest
At USD 14.5 MM has Grown at 25%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 14.5 MM
in the last five periods and Increased by 25% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
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