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Everest Group (EG)
NYSE:EG
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Everest Group
(NYSE:EG)
73Outperform
Positive Factors
Balance Sheet Confidence
There is greater confidence in the company's balance sheet following reserve strengthening efforts.
Growth Potential
The company sees the potential for higher Property Reinsurance rates, suggesting growth in this area.
Management Strategy
Despite a discount vs peers, there is sufficient faith in management's ability to execute on the turnaround.
Negative Factors
Earnings Pressure
Analyst lowers forward EPS primarily due to higher loss picks and less premium growth.
Growth Limitations
The combination of remediating the primary casualty book and softer pricing in the reinsurance segment should reduce the company's ability to generate short to medium term growth.
Insurance Segment Challenges
The Insurance segment is expected to see net adverse PYD and miss management targets, leading to a 20% discount applied to the valuation.
Everest Group (EG) vs. S&P 500 (SPY)
Market Cap
$14.81B
Dividend Yield2.33%
Average Volume (3M)422.63K
Price to Earnings (P/E)17.3
Beta (1Y)0.30
Revenue Growth12.81%
EPS Growth-70.56%
CountryUS
Employees3,037
SectorFinancial
Sector Strength84
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)6.45
Shares Outstanding42,534,730
10 Day Avg. Volume478,955
30 Day Avg. Volume422,630
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)1.05
Price to Sales (P/S)0.00
P/FCF Ratio3.03
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit0.76
Enterprise Value/Ebitda1.02K
Forecast
1Y Price Target
$382.00Price Target Upside9.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Everest Group Business Overview & Revenue Model
Company DescriptionEverest Group (EG) is a leading research and consulting firm specializing in global services, technology, and strategic sourcing. The company provides insights, analysis, and advisory services to help businesses optimize their operations and improve decision-making processes. With a focus on sectors such as IT services, business process outsourcing, and digital transformation, Everest Group offers a range of products including research reports, data analytics, and consulting services.
How the Company Makes MoneyEverest Group makes money primarily through the sale of their research reports, subscription-based access to data and analytics platforms, and consulting services. The company generates revenue by providing market intelligence and strategic advisory services to a wide range of clients, including enterprises, service providers, and investors. Key revenue streams include subscription fees for access to their proprietary research and insights, consulting fees for customized advisory services, and event sponsorships and partnerships that facilitate industry networking and thought leadership. Significant factors contributing to Everest Group's earnings include their reputation for in-depth analysis and expertise in global services, as well as their ability to provide actionable insights that drive business transformation and efficiency.
Everest Group Financial Statement Overview
Summary
Everest Group exhibits strong financial stability with robust revenue growth, efficient cash flow management, and a solid balance sheet. The absence of EBIT/EBITDA raises concerns about operational profitability measurement, but overall financial health is commendable.Income Statement
Everest Group has demonstrated strong revenue growth with a 18.45% increase from 2023 to 2024. The company maintains a high Gross Profit Margin as Gross Profit equates to Total Revenue, indicative of efficient cost management. However, the absence of EBIT and EBITDA in 2024 suggests potential concerns in operational profitability measurement.75
Positive
Balance Sheet
The company shows a strong equity position with an increasing Stockholders' Equity, reaching $13.88 billion in 2024. The Debt-to-Equity ratio is favorable with zero total debt in 2024, indicating low leverage risk. The Equity Ratio improved to 24.62% in 2024, suggesting a solid financial foundation.80
Positive
Cash Flow
Everest Group's cash flow is robust, with a consistent increase in Free Cash Flow, growing by 8.87% from 2023 to 2024. The Operating Cash Flow to Net Income ratio is strong, indicating efficient conversion of income into cash. This highlights financial stability and effective cash management.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 17.39B | 17.08B | 14.59B | 11.98B | 11.30B | 9.49B | Gross Profit |
| 17.39B | 17.08B | 14.59B | 11.98B | 11.30B | 9.49B | EBIT |
| 716.00M | 1.64B | 2.31B | 689.00M | 1.62B | 621.67M | EBITDA |
| 22.00M | 1.70B | -23.50M | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 850.00M | 1.37B | 2.52B | 597.00M | 1.38B | 514.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.52B | 6.26B | 1.44B | 24.67B | 24.93B | 21.98B | Total Assets |
| 58.13B | 56.34B | 49.40B | 39.97B | 38.19B | 32.79B | Total Debt |
| 0.00 | 3.59B | 3.41B | 3.08B | 3.09B | 1.91B | Net Debt |
| -1.57B | 2.04B | 1.97B | 1.69B | 1.65B | 1.11B | Total Liabilities |
| 43.99B | 42.47B | 36.20B | 31.52B | 28.05B | 23.06B | Stockholders Equity |
| 14.14B | 13.88B | 13.20B | 8.44B | 10.14B | 9.73B |
| Cash Flow | Free Cash Flow | ||||
| 4.89B | 4.96B | 4.55B | 3.69B | 3.83B | 2.87B | Operating Cash Flow |
| 4.89B | 4.96B | 4.55B | 3.69B | 3.83B | 2.87B | Investing Cash Flow |
| -4.31B | -4.48B | -5.90B | -3.42B | -3.87B | -3.68B | Financing Cash Flow |
| -554.00M | -383.00M | 1.41B | -359.00M | 674.19M | 800.22M |
Everest Group Technical Analysis
Neutral
348.08
Price Trends
351.90
Negative
351.23
Negative
362.46
Negative
Market Momentum
-1.72
Positive
49.71
Neutral
29.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EG, the sentiment is Neutral. The current price of 348.08 is below the 20-day moving average (MA) of 348.99, below the 50-day MA of 351.90, and below the 200-day MA of 362.46, indicating a bearish trend. The MACD of -1.72 indicates Positive momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 29.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EG.
Everest Group Risk Analysis
Everest Group disclosed 38 risk factors in its most recent earnings report. Everest Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Everest Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $11.97B | 7.74 | 16.30% | 0.65% | 32.10% | -30.52% | |
80 Outperform | $2.17B | 6.61 | 14.07% | ― | 35.36% | -3.34% | |
78 Outperform | $13.54B | 17.31 | 7.60% | 1.72% | 1.60% | -7.50% | |
78 Outperform | $23.14B | 28.73 | 18.93% | 1.11% | 15.76% | 1.97% | |
73 Outperform | $14.81B | 17.35 | 6.12% | 2.33% | 12.81% | -70.56% | |
71 Outperform | $2.25B | 19.69 | 7.20% | ― | -5.57% | -44.54% | |
64 Neutral | $12.83B | 9.83 | 7.64% | 16985.66% | 12.34% | -5.73% |
* Financial Sector Average
Performance Comparison
EG
Everest Group
348.08
-33.56
-8.79%
CBOE
Cboe Global Markets
220.95
40.45
22.41%
RGA
Reinsurance Group
209.12
2.79
1.35%
RNR
Renaissancere Holdings
246.10
20.16
8.92%
SPNT
SiriusPoint
19.24
6.49
50.90%
HG
Hamilton Insurance Group, Ltd. Class B
21.08
4.62
28.07%
Everest Group Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -3.00%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call for Everest Group Ltd. highlighted strong growth in property lines and international markets, successful share repurchases, and robust operating income despite catastrophe losses. However, challenges were noted with the elevated combined ratio due to catastrophic events, a decline in casualty written premium, and increased attritional loss ratios. The sentiment is balanced with notable achievements in property and international markets, but challenges remain in specific areas such as casualty and aviation losses.Q1-2025 Updates
Positive Updates
Growth in Property Lines
Total premiums increased from the prior year, driven by approximately 16% growth in property lines or 8% excluding reinstatement premiums. At the April renewal, the book grew by 5%, led by property growth of 15%.
Strong International Insurance Business
The international insurance business turned a modest profit in the quarter despite continued meaningful investment in people and technology. Strong growth in key markets at attractive loss ratios.
Share Repurchases
Everest repurchased $200 million of shares in the quarter at an average price just over $348 per share, consistent with their commitment to delivering value to shareholders.
Operating Income Despite Catastrophes
Everest delivered $276 million of operating income despite significant catastrophe loss activity in the first quarter.
Improvements in Book Value Per Share
Book value per share ended the quarter at $332.39, an improvement of 3.5% from year-end 2024 when adjusted for dividends.
Negative Updates
Elevated Combined Ratio Due to Catastrophic Events
The combined ratio is elevated at 102.7% due to California wildfire and aviation losses. Catastrophe losses contributed 13.9 points to the combined ratio.
Decline in Casualty Written Premium
Pro-rata written premium was down almost 22% in the quarter, driven by the portfolio actions taken since the January 1st, 2024, renewal.
Attritional Loss Ratio Increase
The Group attritional loss ratio was 62.2%, a 330 basis point increase over the prior year's quarter, driven by aviation losses and conservative loss picks in U.S. casualty lines.
Flat Insurance Written Premium
Insurance written premium in the quarter was down 1.3% from the prior year, with property lines growing 19% but offset by a 15% decline in the third-party book due to U.S. casualty portfolio remediation.
Aviation Losses Impact
Aviation losses of $70 million, net of recoveries and reinstatement premiums, contributed 2 points to the attritional loss ratio.
Company Guidance
During the Everest Group's first quarter 2025 earnings call, the management provided guidance on several key metrics, reflecting the company's strategic focus and market conditions. The combined ratio for the quarter stood at 102.7%, impacted by catastrophic events such as the California wildfires and aviation losses. Total group written premium was $4.4 billion, mirroring Q1 2024. The reinsurance division saw a 16% growth in property lines, while the insurance division faced a 1.3% decline in written premiums due to a 15% reduction in the third-party book. Notably, catastrophe losses contributed 13.9 points to the combined ratio, with California wildfires alone accounting for $440 million. Everest's attritional loss ratio was 62.2%, with aviation losses adding 2 points. The company repurchased $200 million in shares at an average price of $348 per share, indicating a commitment to shareholder value. Everest's overall reserve position improved, and the company projected moderate catastrophe pricing pressure for the remainder of 2025, with opportunities for capital deployment at attractive returns.Everest Group Corporate Events
Executive/Board ChangesShareholder Meetings
Everest Group Holds Annual Shareholder Meeting
Neutral
May 16, 2025
On May 14, 2025, Everest Group, Ltd. held its Annual General Meeting of Shareholders where several key decisions were made. The shareholders elected a slate of directors, appointed KPMG as the independent registered public accounting firm for the fiscal year ending December 31, 2025, approved the 2024 compensation for the Company’s Named Executive Officers, and endorsed the 2025 Employee Stock Purchase Plan and amendments to the Company’s bye-laws.
The most recent analyst rating on (EG) stock is a Hold with a $390.00 price target. To see the full list of analyst forecasts on Everest Group stock, see the EG Stock Forecast page.
Spark’s Take on EG Stock
According to Spark, TipRanks’ AI Analyst, EG is a Outperform.
Everest Group’s strong financial foundation and effective cash flow management are significant strengths, bolstering the stock’s overall score. The valuation suggests the stock may be undervalued, offering potential upside. Technical indicators and earnings call insights present a mixed outlook, with challenges in certain areas like casualty premiums and elevated catastrophe-related ratios. Overall, the stock demonstrates stability but faces some operational hurdles.
To see Spark’s full report on EG stock, click here.
Executive/Board Changes
Everest Group Approves Executive Compensation Awards
Neutral
Mar 4, 2025
On February 26, 2025, Everest Group’s Compensation Committee approved significant compensation awards for its executive officers. Jim Williamson, the President and CEO, received a one-time restricted stock award valued at $2.5 million, while Mark Kociancic, the Executive Vice President and CFO, received a $1.5 million award. Additionally, Mr. Kociancic’s target annual incentive bonus was increased to 175%, and the target value of his equity compensation was raised to $2.5 million.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.