Erie Indemnity Company (ERIE) AI Stock Analysis

Established in 1925 and based in Erie, Pennsylvania, Erie Indemnity Company operates as the managing attorney-in-fact for subscribers of the Erie Insurance Exchange. The company provides critical operational functions including sales, underwriting, policy processing, issuance, renewal services, and risk assessment on behalf of policyholders. Erie Indemnity Company also oversees agent compensation mechanisms, provides sales and advertising support to expand market engagement, and delivers administrative and customer support. The business utilizes information technology platforms to ensure service delivery across its insurance operations.

Between FY2021 and FY2025, annual revenue expanded from $2.70B to $4.07B, representing a five-year revenue compound annual growth rate of 9.6%. Net income rose from $297.9M in FY2021 to a peak of $600.3M in FY2024 before settling at $559.3M in FY2025, alongside diluted EPS of $12.24. Over that span, operating margin shifted from -10.6% in FY2021 to 17.7% in FY2025. In the trailing twelve months, revenue reached $4.12B with a profit margin of 14.0%. For the latest quarter ended June 30, 2026, quarterly revenue grew 2.8% year-over-year while quarterly earnings increased 3.2%.

As of June 30, 2026, Erie Indemnity Company held $344.6M in cash and short-term investments against total debt of $63.2M, resulting in a net cash position of $281.5M. The company maintains a current ratio of 1.25 and a debt-to-equity ratio of 0.03 against shareholders' equity of $2.47B. For FY2025, operating cash flow reached $686.7M, funding $115.7M in capital expenditures and generating free cash flow of $571.0M. During FY2025, the company distributed $254.3M in dividends, while its five-year share count change was -0.0%.

Erie Indemnity Company trades at a trailing price-to-earnings ratio of 22.1x and a forward P/E of 26.7x, both higher than the median of its S&P 500 Financial Services peers at 14.2x and 12.2x, respectively. Its price-to-sales ratio stands at 3.1x, matching the peer group median of 3.1x, while its price-to-book ratio is 5.0x. Over the past year, the stock fell 20.0%, lagging the 16.8% gain for the S&P 500. Over five years, the stock gained 37.6% compared to an 83.0% return for the benchmark index.

The company pays a quarterly dividend totaling $5.85 per share annualized, representing a dividend yield of 2.40% and a payout ratio of 46.4%. Erie Indemnity Company has paid dividends for 32 consecutive years. Its five-year annualized dividend growth rate stands at -1.4%, and its most recent ex-dividend date was October 5, 2026.

Wall Street coverage includes 1 StrongBuy rating, with 0 Buy, 0 Hold, 0 Sell, and 0 StrongSell ratings. The mean price target is $115.00, which is 52.8% below the last close of $243.71. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $4.17B and EPS of $12.70, reflecting 3.7% earnings growth. The company exceeded EPS estimates in 2 of the last 4 quarters, and the next earnings date is October 29, 2026.

This page is an AI-written research summary of Erie Indemnity Company (ERIE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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