The Hanover Insurance GroupTHG -1.35%82 FCF Margin % is 6.82% as of Mar. 2026, which is 50% below its 10-year median of 13.69. GuruFocus rates THG with a GF Score™ of 82/100 and a GF Value™ of $201.18 (Fairly Valued). The stock has 7 warning signs investors should review. Among 501 Insurance companies, The Hanover Insurance Group ranks better than 71.66% on this metric.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Property & Casualty subindustry, The Hanover Insurance Group's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Hanover Insurance Group FCF Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, The Hanover Insurance Group's FCF Margin % distribution charts can be found below:
* The bar in red indicates where The Hanover Insurance Group's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Hanover Insurance Group (THG) has a FCF Margin % of 6.82% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on The Hanover Insurance Group and its competitors. This is 50% below median its historical median of 13.69. Over the past decade, The Hanover Insurance Group's FCF Margin % has ranged from 5.87 to 18.74. According to the industry distribution chart, The Hanover Insurance Group ranks #142 out of 501 companies in the Insurance industry, placing it in the top 28.3%.
Is The Hanover Insurance Group's FCF Margin % too high?
The Hanover Insurance Group's current FCF Margin % of 6.82% is 50% below median its 10-year median of 13.69. Over the past 10 years, this metric has ranged from a low of 5.87 to a high of 18.74. The Insurance industry median FCF Margin % is 9.60. The Hanover Insurance Group's value of 6.82% is 29% below this industry median. Based on the distribution chart, The Hanover Insurance Group ranks #142 out of 501 companies in the Insurance industry, which is above the industry midpoint. Overall, The Hanover Insurance Group has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hanover Insurance Group's FCF Margin % compare to KNSL and MCY?
According to the Insurance industry distribution chart, The Hanover Insurance Group ranks #142 out of 501 companies for FCF Margin %. This puts The Hanover Insurance Group in the upper half of its industry. The industry median FCF Margin % is 9.60. The Hanover Insurance Group's value of 6.82% is 29% below this benchmark. Historically, The Hanover Insurance Group's own FCF Margin % has ranged from 5.87 to 18.74 over the past decade. While the company's 10-year median is 13.69 vs. the industry median of 9.60, The Hanover Insurance Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for an Insurance company?
The median FCF Margin % among Insurance companies is 9.60, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Hanover Insurance Group's current FCF Margin % of 6.82% is 29% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on The Hanover Insurance Group and its competitors. For the Insurance industry, the median FCF Margin % is 9.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hanover Insurance Group's current FCF Margin % is 6.82%, which is 50% below median its own 10-year median of 13.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hanover Insurance Group stock overvalued right now?
Based on GuruFocus' analysis, The Hanover Insurance Group (THG) is currently considered Fairly Valued. The stock's GF Value™ is $201.18, compared to a current price of $207.56 — trading 3.2% above its estimated fair value. The current FCF Margin % is 6.82%, which is 50% below median its 10-year median of 13.69 and 29% below the Insurance industry median of 9.60. The Hanover Insurance Group's overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For The Hanover Insurance Group (THG), the current FCF Margin % is 6.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Hanover Insurance Group (THG) Overvalued in 2026?
Based on GuruFocus' analysis, The Hanover Insurance Group stock appears to be overvalued.
The current stock price of $207.56 is trading 3.2% above its estimated GF Value™ of $201.18.
GuruFocus considers The Hanover Insurance Group to be Fairly Valued.
Key valuation signals for THG:
FCF Margin %: 6.82% (50% below median its 10-year median of 13.69)
GF Value™: $201.18 vs. price of $207.56 (3.2% above fair value)
Industry Position: 29% below the Insurance median (#142 of 501)
No single metric tells the full story. See the THG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hanover Insurance Group Inc is a holding company whose primary business is offering property and casualty insurance products and services. The company markets itself through independent agents and brokers in the United States while conducting business through Hanover Insurance, Citizens and other THG subsidiaries. The company conducts business operations through four operating segments: Core Commercial, Specialty, Personal Lines, and Other. The company operates an investment portfolio that is exposed to fixed-income securities.
82GF Score
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