Erie Indemnity Company

Valuation Analysis

About the Company

Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. It provides issuance and renewal services; sales related services, including agent compensation and sales and advertising support services; underwriting services that include underwriting and policy processing; and other services consist of customer services and administrative support services, as well as information technology services. The company was incorporated in 1925 and is based in Erie, Pennsylvania.

Erie Indemnity Company Stock at a Glance

Erie Indemnity Company (ERIE) is currently trading at $226.67 with a market capitalization of $11.9B. The trailing P/E ratio stands at 20.76x, with a forward P/E of 16.18x. The 52-week range spans from $204.63 to $380.67; the current price is 40.5% below the yearly high. Year-over-year revenue growth stands at +2.3%. The net profit margin stands at 13.97%.

💰 Dividend

Erie Indemnity Company pays an annual dividend of $5.85 per share, representing a yield of 2.58%. The payout ratio stands at 51.79%.

Erie Indemnity Company: The Investment Case in Detail

Erie Indemnity Company (ERIE) operates in the Financial Services — specifically Insurance Brokers — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Return on equity of 25.85% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

Revenue growth has slowed to just 2.3%, which is below nominal GDP — the business is no longer outgrowing the broader economy. Short interest sits at 10.2% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

What to Watch Next

• The forward P/E of 16.18x is meaningfully below the trailing 20.76x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (10.2%).

Trading Data

💵 Dividend Info

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