THG

Financial Services

The Hanover Insurance Group, Inc. · Insurance - Property & Casualty · $6B

UQS Score — Balanced Preset
54.0
Average

The Hanover Insurance Group, Inc. scores 54.0/100 using the Balanced preset.

68.1
Quality
35%
26.0
Moat
30%
30.5
Growth
20%
62.8
Risk
15%

THG — Key Takeaways

✅ Strengths

The Hanover Insurance Group, Inc. shows strong profitability and capital efficiency
The Hanover Insurance Group, Inc. shows conservative financial structure with manageable risk
The Hanover Insurance Group, Inc. shows attractive valuation relative to fundamentals

⚠️ Areas of Concern

The Hanover Insurance Group, Inc. has limited competitive moat

THG — Score History

45505560Apr 2Apr 3Apr 4Apr 5Apr 6Apr 7Apr 8
DateUQSQualityMoatGrowthRiskValueChange
Apr 8, 202654.068.126.030.562.8100.00.0
Apr 7, 202654.068.126.030.562.8100.00.0
Apr 6, 202654.068.126.030.562.8100.00.0
Apr 5, 202654.068.126.030.562.8100.00.0
Apr 4, 202654.068.126.030.562.8100.00.0
Apr 3, 202654.068.126.030.562.8100.00.0
Apr 2, 202654.068.126.030.562.8100.0

THG — Pillar Breakdown

Quality

68.1/100 (25%)

The Hanover Insurance Group, Inc. shows solid profitability with healthy returns on capital and reasonable margins.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

30.5/100 (20%)

The Hanover Insurance Group, Inc. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthWeak

Analyst consensus for future earnings growth.

Risk

62.8/100 (15%)

The Hanover Insurance Group, Inc. maintains a reasonable risk profile with manageable debt levels.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

100.0/100 (15%)

The Hanover Insurance Group, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

Moat

26/100 (30%)

The Hanover Insurance Group, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for THG.

Score Composition

Quality
68.1×25%17.0
Growth
30.5×20%6.1
Risk
62.8×15%9.4
Valuation
100.0×15%15.0
Moat
26.0×30%7.8
Total
54.0Average

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How is the THG UQS Score Calculated?

The UQS (Unified Quality Score) for The Hanover Insurance Group, Inc. is calculated using a proprietary 5-pillar framework with 25 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses The Hanover Insurance Group, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether The Hanover Insurance Group, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.