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Employers HoldingsEIG +0.20%70 Pretax Margin % is 15.76% as of Jun. 2026, which is 13% below its 10-year median of 18.03. GuruFocus rates EIG with a GF Score™ of 70/100 and a GF Value™ of $53.74 (Fairly Valued). The stock has 4 warning signs investors should review. Among 499 Insurance companies, Employers Holdings ranks worse than 89.18% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Employers Holdings Pretax Margin % Related Terms
Employers Holdings Pretax Margin % Historical Data
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The historical data trend for Employers Holdings's Pretax Margin % can be seen below:
* 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.
EIG vs TIPT, AMSF, ITIC: Pretax Margin % Comparison
For the Insurance - Specialty subindustry, Employers Holdings's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Employers Holdings Pretax Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Employers Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Employers Holdings's Pretax 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.
Employers Holdings (EIG) has a Pretax Margin % of 15.76% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Employers Holdings and its competitors. This is 13% below median its historical median of 18.03. Over the past decade, Employers Holdings' Pretax Margin % has ranged from 0.80 to 23.18. According to the industry distribution chart, Employers Holdings ranks #445 out of 499 companies in the Insurance industry, placing it in the top 89.2%.
Is Employers Holdings' Pretax Margin % too high?
Employers Holdings' current Pretax Margin % of 15.76% is 13% below median its 10-year median of 18.03. Over the past 10 years, this metric has ranged from a low of 0.80 to a high of 23.18. The Insurance industry median Pretax Margin % is 11.90. Employers Holdings' value of 15.76% is 32.4% above this industry median. Based on the distribution chart, Employers Holdings ranks #445 out of 499 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Employers Holdings has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Employers Holdings' Pretax Margin % compare to TIPT and AMSF?
According to the Insurance industry distribution chart, Employers Holdings ranks #445 out of 499 companies for Pretax Margin %. This places Employers Holdings in the lower half of its industry. The industry median Pretax Margin % is 11.90. Employers Holdings' value of 15.76% is 32.4% above this benchmark. Historically, Employers Holdings' own Pretax Margin % has ranged from 0.80 to 23.18 over the past decade. While the company's 10-year median is 18.03 vs. the industry median of 11.90, Employers Holdings has consistently been above 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 Pretax Margin % for an Insurance company?
The median Pretax Margin % among Insurance companies is 11.90, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Employers Holdings's current Pretax Margin % of 15.76% is 32.4% above 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Employers Holdings and its competitors. For the Insurance industry, the median Pretax Margin % is 11.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Employers Holdings's current Pretax Margin % is 15.76%, which is 13% below median its own 10-year median of 18.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Employers Holdings stock overvalued right now?
Based on GuruFocus' analysis, Employers Holdings (EIG) is currently considered Fairly Valued. The stock's GF Value™ is $53.74, compared to a current price of $50.65 — trading 5.7% below its estimated fair value. The current Pretax Margin % is 15.76%, which is 13% below median its 10-year median of 18.03 and 32.4% above the Insurance industry median of 11.90. Employers Holdings' overall GF Score™ is 70/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Employers Holdings (EIG), the current Pretax Margin % is 15.76% as of Jun. 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 Employers Holdings (EIG) Overvalued in 2026?
Based on GuruFocus' analysis, Employers Holdings stock appears to be undervalued.
The current stock price of $50.65 is trading 5.7% below its estimated GF Value™ of $53.74.
GuruFocus considers Employers Holdings to be Fairly Valued.
Key valuation signals for EIG:
Pretax Margin %: 15.76% (13% below median its 10-year median of 18.03)
GF Value™: $53.74 vs. price of $50.65 (5.7% below fair value)
Industry Position: 32.4% above the Insurance median (#445 of 499)
No single metric tells the full story. See the EIG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Employers Holdings Inc is a provider of workers' compensation insurance and services focused on small and mid-sized businesses engaged in low-to-medium hazard industries. Its customers are employers, and the insurance premiums that those employers pay to account for company revenue. Substantially all of the remaining revenue is generated through investments. The company operates exclusively in the United States, and it generates more than half of its business in California. By industry, the company has exposure to restaurants, which account for roughly a fourth of the total premiums the company earns. It operates as a single reportable segment, Insurance Operations through its wholly owned subsidiaries.
70GF Score
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