The Hanover Insurance Group, Inc. cash flow to debt ratio of 96.70% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

The Hanover Insurance Group, Inc.'s free cash flow has increased 47.00% from $796.20M last year to $1.17B, signaling increasing performance

The Hanover Insurance Group, Inc.'s debt to equity ratio is 0.23, which means that the company's assets are healthy financed, signaling financial stability.

The Hanover Insurance Group, Inc.'s debt has decreased relative to shareholder equity from 0.28 last year to 0.23 today, signaling strengthened financials

The Hanover Insurance Group, Inc. has a net cash position, so leverage is healthy.

The Hanover Insurance Group, Inc.'s interest coverage ratio of 20.57 indicates that earnings with good margin can cover interest payments on company debt

The Hanover Insurance Group, Inc.'s profit margin has increased (63.17%) in the last year from 6.85% to 11.18%, signaling increasing performance

The Hanover Insurance Group, Inc.'s short-term liabilities of $11.24B exceed its short-term assets of $6.95B, signaling financial risk

The Hanover Insurance Group, Inc.'s return on assets of 4.48% is lower than the 5.00% threshold, indicating inefficient asset utilization

The Hanover Insurance Group, Inc.'s return on equity of 21.22%, is higher than 15.00%, indicating good performance

The Hanover Insurance Group, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

The Hanover Insurance Group, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

The Hanover Insurance Group, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

The Hanover Insurance Group, Inc. has a free cash flow yield of 14.89%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

The Hanover Insurance Group, Inc.'s yearly earnings has increased 55.52% since last year from $426.00M to $662.50M, signaling increasing performance

The Hanover Insurance Group, Inc.'s yearly revenue has increased 6.07% since last year from $6.22B to $6.59B, signaling increasing performance

ROIC 4.47% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

The Hanover Insurance Group, Inc.'s 3-year revenue CAGR of 6.69% is positive, indicating growing revenue over the past 3 years

The Hanover Insurance Group, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

The Hanover Insurance Group, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

The Hanover Insurance Group, Inc. is undervalued relative to its fair value price of 587.66 based on Discounted Cash Flow model

The Hanover Insurance Group, Inc. has an earnings yield of 9.43%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

The Hanover Insurance Group, Inc. is overvalued relative to its fair value price of 173.74 based on EBITDA multiple model

The Hanover Insurance Group, Inc. has an EV/EBITDA ratio of 6.89x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

The Hanover Insurance Group, Inc. is undervalued relative to its fair value price of 276.56 based on Earnings Fair Value model

The Hanover Insurance Group, Inc. has a PEG-ratio under 1 which is considered undervalued

The Hanover Insurance Group, Inc. has a price-to-book ratio of 2.18x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

The Hanover Insurance Group, Inc. has a price-to-sales ratio of 1.19x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue