📊 ERIE Key Takeaways
Is Erie Indemnity Co (ERIE) a Good Investment?
Erie Indemnity demonstrates fortress-like financial health with zero debt, $2.4B equity, and 7.2% revenue growth, but deteriorating profitability with net income declining 6.8% YoY signals operational headwinds offsetting top-line expansion. Weak capital efficiency (6.4% ROE, 4.5% ROA) and modest free cash flow generation suggest the company is not effectively converting growth into shareholder returns.
ERIE INDEMNITY CO shows strong core fundamentals, with solid revenue growth, healthy double-digit operating and free cash flow margins, and very high returns on equity and assets. The balance sheet is notably conservative with no long-term debt and ample liquidity, which supports resilience. The main caution is that net income declined year over year despite revenue growth, suggesting some pressure on expense control or earnings quality that should be monitored.
Erie Indemnity Co Key Strengths (ERIE)
- Zero long-term debt with $268.6M cash provides financial flexibility and low financial risk
- Revenue growing 7.2% YoY with healthy 16.5% operating margin showing core business strength
- Strong balance sheet: $3.4B assets vs $1.0B liabilities with $2.4B stockholders equity provides stability
- Positive free cash flow generation of $54.5M demonstrates operational viability
- Consistent top-line growth with revenue up 7.2% year over year
- Strong profitability profile with 17.6% operating margin, 13.8% net margin, and high ROE/ROA
- Excellent financial health driven by zero long-term debt and robust free cash flow generation
ERIE Stock Risks: Erie Indemnity Co Investment Risks
- Net income declining 6.8% YoY despite revenue growth indicates margin compression or rising operating costs
- Very low ROE (6.4%) and ROA (4.5%) suggest inefficient capital deployment and poor capital productivity
- Modest FCF margin (5.4%) provides limited reinvestment capacity or shareholder distributions
- Insurance sector cyclicality and underwriting cycle exposure could further pressure profitability
- Net income fell 6.8% year over year despite higher revenue
- Liquidity is adequate but not exceptionally strong at a 1.27x current ratio
- Growth quality could weaken if margin compression continues or cash conversion declines
Key Metrics to Watch
- Net income trend - need reversal from negative YoY growth to support thesis
- Operating margin stability - monitor for further compression below 16.5%
- Free cash flow growth - should accelerate beyond current 5.4% margin level
- Return on equity trajectory - 6.4% is insufficient; target improvement toward 8-10% minimum
- Net income and operating margin trend
- Free cash flow and operating cash flow conversion
Erie Indemnity Co (ERIE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Erie Indemnity Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ERIE Profit Margin, ROE & Profitability Analysis
ERIE vs Finance Sector: How Erie Indemnity Co Compares
How Erie Indemnity Co compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Erie Indemnity Co Stock Overvalued? ERIE Valuation Analysis 2026
Based on fundamental analysis, Erie Indemnity Co has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Erie Indemnity Co Balance Sheet: ERIE Debt, Cash & Liquidity
ERIE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Erie Indemnity Co's revenue has grown significantly by 54% over the 5-year period, indicating strong business expansion.
ERIE Revenue Growth, EPS Growth & YoY Performance
ERIE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $989.4M | $138.4M | N/A |
| Q3 2025 | $999.9M | $124.6M | N/A |
| Q2 2025 | $990.4M | $124.6M | N/A |
| Q1 2025 | $880.7M | $124.6M | N/A |
| Q3 2024 | $858.9M | $86.2M | N/A |
| Q2 2024 | $839.9M | $86.2M | N/A |
| Q1 2024 | $752.5M | $86.2M | N/A |
| Q3 2023 | $741.2M | $68.6M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Erie Indemnity Co Dividends, Buybacks & Capital Allocation
ERIE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Erie Indemnity Co (CIK: 0000922621)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780936217.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780936000.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780935753.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780934966.xml | View → |
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780585651.xml | View → |
❓ Frequently Asked Questions about ERIE
What is the AI rating for ERIE?
Erie Indemnity Co (ERIE) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ERIE's key strengths?
Claude: Zero long-term debt with $268.6M cash provides financial flexibility and low financial risk. Revenue growing 7.2% YoY with healthy 16.5% operating margin showing core business strength. ChatGPT: Consistent top-line growth with revenue up 7.2% year over year. Strong profitability profile with 17.6% operating margin, 13.8% net margin, and high ROE/ROA.
What are the risks of investing in ERIE?
Claude: Net income declining 6.8% YoY despite revenue growth indicates margin compression or rising operating costs. Very low ROE (6.4%) and ROA (4.5%) suggest inefficient capital deployment and poor capital productivity. ChatGPT: Net income fell 6.8% year over year despite higher revenue. Liquidity is adequate but not exceptionally strong at a 1.27x current ratio.
What is ERIE's revenue and growth?
Erie Indemnity Co reported revenue of $1.0B.
Does ERIE pay dividends?
Erie Indemnity Co pays dividends, with $68.1M distributed to shareholders in the trailing twelve months.
Where can I find ERIE SEC filings?
Official SEC filings for Erie Indemnity Co (CIK: 0000922621) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ERIE's EPS?
Erie Indemnity Co has a diluted EPS of $491.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ERIE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Erie Indemnity Co has a A grade with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ERIE stock overvalued or undervalued?
Valuation metrics for ERIE: ROE of 6.4% (sector avg: 12%), net margin of 14.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is ERIE's AI grade for 2026?
Our dual AI analysis gives Erie Indemnity Co a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ERIE's free cash flow?
Erie Indemnity Co's operating cash flow is $91.9M, with capital expenditures of $37.4M. FCF margin is 5.4%.
How does ERIE compare to other Finance stocks?
Vs Finance sector averages: Net margin 14.9% (avg: 25%), ROE 6.4% (avg: 12%), current ratio 1.29 (avg: 1.2).