Everest (US:EG) ZACKSยท2025-05-22 15:41Core Viewpoint - Everest Group, Ltd. (EG) shares are currently trading at a discount compared to the Zacks Multi-line Insurance industry, with a forward price-to-book value of 1.02X, significantly lower than the industry average of 2.46X, the Finance sector's 4.3X, and the Zacks S&P 500 Composite's 7.98X [1] Group 1: Financial Performance - Everest Group has a market capitalization of $14.48 billion, with an average trading volume of 0.4 million shares over the last three months [3] - The Zacks Consensus Estimate for Everest Group's 2025 earnings per share indicates a year-over-year increase of 53.9%, with revenues projected at $17.70 billion, reflecting a 2.4% year-over-year improvement [4] - Earnings have grown 21.4% over the past five years, outperforming the industry average of 10.3%, with a long-term earnings growth rate expected at 28.2%, compared to the industry average of 12.5% [5] Group 2: Analyst Sentiment - The Zacks Consensus Estimate for 2025 earnings has decreased by 3% in the past 30 days, while the estimate for 2026 has decreased by 1% during the same period [6] - Shares of Everest Group have lost 12.1% in the past year, underperforming the industry, Finance sector, and Zacks S&P 500 composite, which grew by 4.8%, 17.9%, and 10.9%, respectively [7][8] Group 3: Growth Drivers - Factors driving Everest Group's growth include global presence, product diversification, rate increases, and a high retention rate [11] - The Insurance segment is expected to benefit from an increase in property and short-tail business, as well as a rise in specialty casualty business [11] - Net investment income is anticipated to improve due to higher income from the fixed income portfolio, increased limited partnership income, and a favorable interest rate environment [12] Group 4: Capital Management - Everest Group maintains a strong capital position, with sufficient cash generation capabilities and a target long-term debt leverage ratio of 15-20% over the next three years [13] - The board approved a 14.3% increase in its quarterly dividend in May 2024, with a target total shareholder return on equity of over 17% from 2024 to 2026 [14] - The company plans to continue share repurchases throughout 2025, reflecting robust earnings power and disciplined capital management [14] Group 5: Investment Outlook - Higher income from the fixed income portfolio, product diversification, strong renewal retention, and a solid capital position make Everest Group a strong candidate for investment [15] - The stock has a VGM Score of B, indicating attractive value, growth, and momentum [15]