Everest (US:EG) ZACKSยท2025-08-19 16:56Core Viewpoint - Everest Group, Ltd. is currently experiencing a short-term bearish trend as its shares trade below the 50-day simple moving average, indicating potential resistance levels for traders and analysts [1] Price Performance - Shares of Everest Group have declined by 8.4% year-to-date, underperforming the Finance sector's growth of 10.7% and the Zacks S&P 500 Composite's growth of 9.6% [2] - The company has a market capitalization of $13.9 billion, with an average trading volume of 0.4 million shares over the last three months [2] Valuation Metrics - Everest Group's shares are trading at a price-to-book value of 0.93X, which is lower than the industry average of 2.19X, indicating that the shares are affordable [4] Growth Projections - The Zacks Consensus Estimate for Everest Group's 2025 revenues is $17.6 billion, reflecting a year-over-year growth of 2.2% [9] - The consensus estimate for current-year earnings is $45.39 per share, suggesting a significant growth of 52.2% from the previous year [9] - Projections for 2026 indicate earnings per share and revenues will increase by 34.6% and 4.8%, respectively [9] Analyst Sentiment - Analysts have recently lowered their earnings estimates for both 2025 and 2026, with a 1.2% decrease for 2025 and a 0.9% decrease for 2026 [12] Strategic Expansion - Everest Group is expanding its operations globally, reducing risk concentration in North America and enhancing diversification across over 100 countries [8][15] - The company ranks as the 4th largest P&C reinsurer, benefiting from a diversified portfolio and lower catastrophe volatility [8][16] Financial Stability - The company maintains a strong balance sheet with a debt-to-capital ratio of 19.3%, significantly below the industry average of 34.4% [18] - Its times interest earned ratio stands at 447x, far exceeding the industry's 11.5x, indicating robust financial flexibility [18] Investment Income - Net investment income is on the rise, supported by a conservative and diversified portfolio, with over 75% allocated to investment-grade fixed income [17] Shareholder Value - Everest Group has increased its dividend four times in the last five years, with a five-year annualized dividend growth rate of 11.7% [21] - The company has also approved a share buyback program worth $10 million [21] Conclusion - Everest Group benefits from strong organic growth, a conservative investment portfolio, and a solid balance sheet, which support earnings stability and risk-adjusted returns [22] - However, challenges remain due to exposure to catastrophe losses and a return on equity that lags behind the industry average [22]