Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on The Hanover Insurance Group Inc (NYSE:THG) due to its excellent fundamentals in more than one area. THG is a well-regarded dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Hanover Insurance Group here.
Excellent balance sheet established dividend payer
With a debt-to-equity ratio of 26%, THG’s debt level is acceptable. This means that THG’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. THG seems to have put its debt to good use, generating operating cash levels of 0.72x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
THG is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Hanover Insurance Group, I’ve put together three fundamental aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for THG’s future growth? Take a look at our free research report of analyst consensus for THG’s outlook.
- Historical Performance: What has THG’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of THG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.