Everest Group (EG) AI Stock Analysis

• Market Cap: $16.65B
• Dividend Yield: 2.3%
• Average Volume (3M): 436.57K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.30
• Revenue Growth: 18.47%
• EPS Growth: -46.75%
• Country: US
• Employees: 3,037
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Reinsurance
• EPS (TTM): 31.81
• Shares Outstanding: 47,784,880
• 10 Day Avg. Volume: 352,483
• 30 Day Avg. Volume: 436,574
• PEG Ratio: 0.31
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.87
• Price to Cash Flow (P/CF): 4.90
• P/FCF Ratio: 4.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $396.00
• Price Target Upside: 15.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Everest Group scores a 74, reflecting strong financial performance with robust equity and cash flow positions. Valuation metrics suggest the stock is attractively priced. Technical indicators show positive momentum, though caution is warranted due to potential overbought conditions. Despite challenges from recent earnings calls, the company's strategic focus on reinsurance and international growth, supported by new leadership, positions it for future success.

Positive Factors

Management Actions

EG's newly appointed CEO is taking meaningful steps to turnaround profitability levels.

Management Faith

Despite a discount vs peers, there is sufficient faith in management's ability to execute on the turnaround.

Negative Factors

Market Conditions

The reinsurance segment should also face a slowdown due to a soft market pricing environment.

Reserve Charge Impact

The turnaround will take longer than originally expected following casualty reserve additions 3x the original estimate, driving continued expense ratio pressure.

Stock Downgrade

The stock is downgraded to Equal-weight and the price target is reduced to $340 given the reserve charges and updated outlook.

Everest Group Business Overview & Revenue Model

Company Description

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through Reinsurance Operations and Insurance Operations segments. The Reinsurance Operations segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines brokers, and general agents in the United States, Bermuda, Canada, Europe, South America, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and property and casualty reinsurance and insurance coverages, including marine, aviation, surety, errors and omissions liability, directors' and officers' liability, medical malpractice, mortgage reinsurance, other specialty lines, accident and health, and workers' compensation products. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023. The company was founded in 1973 and is headquartered in Hamilton, Bermuda.

How the Company Makes Money

Everest 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 demonstrates robust financial health with strong revenue growth and cash flow management. The balance sheet is solid with a high equity base and no debt, indicating low financial risk. The absence of EBIT/EBITDA metrics slightly obscures operational profitability, but overall stability 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.

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.

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.28B	14.59B	11.98B	11.30B	9.49B
	Gross Profit
17.28B	14.59B	11.98B	11.30B	9.49B
	EBIT
0.00	2.31B	689.00M	1.62B	621.67M
	EBITDA
0.00	-23.50M	0.00	0.00	0.00
	Net Income Common Stockholders
1.37B	2.52B	597.00M	1.38B	514.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.26B	1.44B	24.67B	24.93B	21.98B
	Total Assets
56.34B	49.40B	39.97B	38.19B	32.79B
	Total Debt
3.59B	3.41B	3.08B	3.09B	1.91B
	Net Debt
-1.55B	1.97B	1.69B	1.65B	1.11B
	Total Liabilities
42.47B	36.20B	31.52B	28.05B	23.06B
	Stockholders Equity
13.88B	13.20B	8.44B	10.14B	9.73B
Cash Flow		Free Cash Flow
4.96B	4.55B	3.69B	3.83B	2.87B
	Operating Cash Flow
4.96B	4.55B	3.69B	3.83B	2.87B
	Investing Cash Flow
-4.48B	-5.90B	-3.42B	-3.87B	-3.68B
	Financing Cash Flow
-383.00M	1.41B	-359.00M	674.19M	800.22M

Everest Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 341.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EG, the sentiment is Negative. The current price of 341.4 is below the 20-day moving average (MA) of 355.15, below the 50-day MA of 347.98, and below the 200-day MA of 365.76, indicating a bearish trend. The MACD of 4.24 indicates Negative momentum. The RSI at 59.45 is Neutral, neither overbought nor oversold. The STOCH value of 63.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EG.

Everest Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HG	81 Outperform	$1.88B	4.84	18.30%	―	55.66%	62.05%
CBOE	79 Outperform	$21.55B	28.53	18.42%	1.19%	8.51%	1.13%
RGA	75 Outperform	$12.01B	16.97	7.21%	1.93%	19.29%	-19.91%
EG	74 Outperform	$16.65B	10.95	10.14%	2.30%	18.47%	-46.75%
RNR	73 Outperform	$11.71B	6.78	18.40%	0.69%	28.22%	-31.48%
SPNT	71 Outperform	$2.60B	15.78	8.71%	―	-7.05%	-52.10%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%

Everest Group Corporate Events

Everest Group Approves Executive Compensation Awards

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.

Everest Group Projects Strong 2024 Financial Results

On January 27, 2025, Everest Group announced preliminary financial results for 2024, anticipating a net income between $1.3 billion and $1.4 billion. The results reflect a strengthening of U.S. casualty reserves by $1.1 billion in the Insurance segment and $684 million in the Reinsurance segment, driven by social inflation and portfolio concentrations. Additionally, the company introduced a new ‘Other’ segment and outlined a strategic shift away from detailed forward guidance, aiming for mid-teens shareholder returns. These measures are part of a broader strategy to fortify the company’s balance sheet and enhance future returns.

Everest Group Appoints Jim Williamson as CEO

Everest Group, Ltd. has announced the appointment of Jim Williamson as President and Chief Executive Officer. Effective immediately, Williamson’s extensive industry experience and previous roles at Everest position him to lead the company towards future growth and value creation, as acknowledged by the Board’s confidence.

Everest Group Appoints Jim Williamson as Acting CEO

Everest Group, Ltd. announced the appointment of Jim Williamson as Acting Chief Executive Officer and member of the Board of Directors, as disclosed in a report filed on January 8, 2025. Williamson will receive an additional $25,000 monthly stipend, effective January 13, 2025, reflecting his new responsibilities, while other compensation terms remain unchanged.