📊 THG Key Takeaways
Is Hanover Insurance Group, Inc.. (THG) a Good Investment?
Hanover Insurance demonstrates fortress-like financial health with an exceptional Debt/Equity of 0.24x, robust free cash flow of $1.2B (17.7% FCF margin), and consistent revenue growth of 5.7% YoY. However, flat net income despite top-line growth raises concerns about margin compression that warrant monitoring of underwriting performance and operational efficiency.
Why Buy Hanover Insurance Group, Inc.. Stock? THG Key Strengths
- Exceptional financial leverage with Debt/Equity 0.24x and Interest Coverage 21.6x—significantly de-risked balance sheet
- Strong cash generation with $1.2B operating cash flow and 17.7% FCF margin indicating quality earnings
- Solid ROE of 18.5% demonstrates efficient capital deployment; EPS growth of 55.2% YoY reflects shareholder-friendly capital allocation
- Consistent revenue growth of 5.7% YoY with operating margins stable at 14.1% in competitive insurance sector
- Conservative balance sheet with $1.1B cash provides strategic flexibility and downside protection
THG Stock Risks: Hanover Insurance Group, Inc.. Investment Risks
- Net income flat YoY (+0.0%) despite 5.7% revenue growth signals margin compression or operational headwinds requiring investigation
- Underwriting performance and claims trends not fully transparent from available metrics; insurance sector cyclical nature poses risks
- ROA of 3.9% is modest, potentially indicating market competition or underwriting challenges in core business
- Lack of current ratio/quick ratio data limits visibility into near-term liquidity management for an insurance underwriter
Key Metrics to Watch
- Net income growth trajectory relative to revenue—critical to confirm margin stabilization or identify structural challenges
- Underwriting loss/gain and combined ratio trends—core to insurance profitability
- Operating cash flow sustainability and free cash flow conversion rate
Hanover Insurance Group, Inc.. (THG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
THG Profit Margin, ROE & Profitability Analysis
THG vs Finance Sector: How Hanover Insurance Group, Inc.. Compares
How Hanover Insurance Group, Inc.. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hanover Insurance Group, Inc.. Stock Overvalued? THG Valuation Analysis 2026
Based on fundamental analysis, Hanover Insurance Group, Inc.. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hanover Insurance Group, Inc.. Balance Sheet: THG Debt, Cash & Liquidity
THG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hanover Insurance Group, Inc..'s revenue has grown significantly by 26% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.98 reflects profitable operations.
THG Revenue Growth, EPS Growth & YoY Performance
THG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.6B | $102.1M | $2.80 |
| Q2 2025 | $1.5B | $40.5M | $1.12 |
| Q1 2025 | $1.6B | $115.5M | $3.18 |
| Q3 2024 | $1.5B | $8.6M | $0.24 |
| Q2 2024 | $1.5B | $40.5M | $1.12 |
| Q1 2024 | $1.4B | -$12.0M | $-0.34 |
| Q3 2023 | $1.4B | $500.0K | $0.01 |
| Q2 2023 | $1.3B | $22.7M | $0.63 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hanover Insurance Group, Inc.. Dividends, Buybacks & Capital Allocation
THG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hanover Insurance Group, Inc.. (CIK: 0000944695)
📋 Recent SEC Filings
❓ Frequently Asked Questions about THG
What is the AI rating for THG?
Hanover Insurance Group, Inc.. (THG) has an AI rating of BUY with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are THG's key strengths?
Claude: Exceptional financial leverage with Debt/Equity 0.24x and Interest Coverage 21.6x—significantly de-risked balance sheet. Strong cash generation with $1.2B operating cash flow and 17.7% FCF margin indicating quality earnings.
What are the risks of investing in THG?
Claude: Net income flat YoY (+0.0%) despite 5.7% revenue growth signals margin compression or operational headwinds requiring investigation. Underwriting performance and claims trends not fully transparent from available metrics; insurance sector cyclical nature poses risks.
What is THG's revenue and growth?
Hanover Insurance Group, Inc.. reported revenue of $6.6B.
Does THG pay dividends?
Hanover Insurance Group, Inc.. pays dividends, with $130.6M distributed to shareholders in the trailing twelve months.
Where can I find THG SEC filings?
Official SEC filings for Hanover Insurance Group, Inc.. (CIK: 0000944695) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is THG's EPS?
Hanover Insurance Group, Inc.. has a diluted EPS of $18.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is THG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Hanover Insurance Group, Inc.. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is THG stock overvalued or undervalued?
Valuation metrics for THG: ROE of 18.5% (sector avg: 12%), net margin of 10.0% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy THG stock in 2026?
Our dual AI analysis gives Hanover Insurance Group, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is THG's free cash flow?
Hanover Insurance Group, Inc..'s operating cash flow is $1.2B, with capital expenditures of $7.7M. FCF margin is 17.7%.
How does THG compare to other Finance stocks?
Vs Finance sector averages: Net margin 10.0% (avg: 25%), ROE 18.5% (avg: 12%), current ratio N/A (avg: 1.2).