PALOMAR HOLDINGS INC (PLMR) Stock Fundamental Analysis
NASDAQ:PLMR - Nasdaq - US69753M1053 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PLMR. PLMR was compared to 143 industry peers in the Insurance industry. PLMR scores excellent on profitability, but there are some minor concerns on its financial health. PLMR shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
PLMR had positive earnings in the past year.
In the past year PLMR had a positive cash flow from operations.
PLMR had positive earnings in each of the past 5 years.
In the past 5 years PLMR always reported a positive cash flow from operatings.
1.2 Ratios
PLMR's Return On Assets of 5.53% is amongst the best of the industry. PLMR outperforms 89.51% of its industry peers.
PLMR has a better Return On Equity (16.97%) than 77.62% of its industry peers.
PLMR's Return On Invested Capital of 5.59% is amongst the best of the industry. PLMR outperforms 84.62% of its industry peers.
PLMR had an Average Return On Invested Capital over the past 3 years of 4.75%. This is in line with the industry average of 4.27%.
The 3 year average ROIC (4.75%) for PLMR is below the current ROIC(5.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.53% | ||
| ROE | 16.97% | ||
| ROIC | 5.59% |
ROA(3y)4.61%
ROA(5y)3.93%
ROE(3y)15.5%
ROE(5y)11.97%
ROIC(3y)4.75%
ROIC(5y)3.96%
1.3 Margins
PLMR has a better Profit Margin (21.99%) than 93.01% of its industry peers.
PLMR's Profit Margin has improved in the last couple of years.
PLMR has a better Operating Margin (28.07%) than 92.31% of its industry peers.
PLMR's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.07% | ||
| PM (TTM) | 21.99% | ||
| GM | N/A |
OM growth 3Y4.56%
OM growth 5Y9.37%
PM growth 3Y4.72%
PM growth 5Y17.81%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
PLMR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PLMR has been increased compared to 1 year ago.
Compared to 5 years ago, PLMR has more shares outstanding
There is no outstanding debt for PLMR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
There is no outstanding debt for PLMR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.61
WACC9.11%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PLMR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.49%, which is quite impressive.
The Earnings Per Share has been growing by 23.66% on average over the past years. This is a very strong growth
Looking at the last year, PLMR shows a very strong growth in Revenue. The Revenue has grown by 50.51%.
Measured over the past years, PLMR shows a very strong growth in Revenue. The Revenue has been growing by 37.35% on average per year.
EPS 1Y (TTM)47.49%
EPS 3Y35.41%
EPS 5Y23.66%
EPS Q2Q%71.56%
Revenue 1Y (TTM)50.51%
Revenue growth 3Y30.75%
Revenue growth 5Y37.35%
Sales Q2Q%20.13%
3.2 Future
The Earnings Per Share is expected to grow by 21.23% on average over the next years. This is a very strong growth
Based on estimates for the next years, PLMR will show a quite strong growth in Revenue. The Revenue will grow by 17.39% on average per year.
EPS Next Y37.05%
EPS Next 2Y26.41%
EPS Next 3Y21.23%
EPS Next 5YN/A
Revenue Next Year25.06%
Revenue Next 2Y23.12%
Revenue Next 3Y17.39%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.69, PLMR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PLMR indicates a slightly more expensive valuation: PLMR is more expensive than 73.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PLMR to the average of the S&P500 Index (25.82), we can say PLMR is valued inline with the index average.
The Price/Forward Earnings ratio is 19.99, which indicates a rather expensive current valuation of PLMR.
Based on the Price/Forward Earnings ratio, PLMR is valued a bit more expensive than 69.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. PLMR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.69 | ||
| Fwd PE | 19.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLMR is valued a bit more expensive than the industry average as 66.43% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, PLMR is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.25 | ||
| EV/EBITDA | 23.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PLMR has an outstanding profitability rating, which may justify a higher PE ratio.
PLMR's earnings are expected to grow with 21.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)1.17
EPS Next 2Y26.41%
EPS Next 3Y21.23%
5. Dividend
5.1 Amount
No dividends for PLMR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
162.56
+1.74 (+1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.85%
Inst Owner Change1.19%
Ins Owners2.88%
Ins Owner Change5.53%
Market Cap4.35B
Analysts80
Price Target164.02 (0.9%)
Short Float %2.23%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.19%
Min EPS beat(2)15.38%
Max EPS beat(2)21.01%
EPS beat(4)4
Avg EPS beat(4)16.41%
Min EPS beat(4)12.71%
Max EPS beat(4)21.01%
EPS beat(8)8
Avg EPS beat(8)14.94%
EPS beat(12)11
Avg EPS beat(12)7.82%
EPS beat(16)14
Avg EPS beat(16)4.71%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-1.85%
Revenue beat(4)1
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-7.57%
Max Revenue beat(4)11.48%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)3
Avg Revenue beat(12)-15.64%
Revenue beat(16)3
Avg Revenue beat(16)-24.4%
PT rev (1m)8.65%
PT rev (3m)32.35%
EPS NQ rev (1m)3.23%
EPS NQ rev (3m)9.02%
EPS NY rev (1m)3.73%
EPS NY rev (3m)12.46%
Revenue NQ rev (1m)-2.08%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)3.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.69 | ||
| Fwd PE | 19.99 | ||
| P/S | 7.12 | ||
| P/FCF | 15.25 | ||
| P/OCF | 13.78 | ||
| P/B | 5.5 | ||
| P/tB | 5.68 | ||
| EV/EBITDA | 23.71 |
EPS(TTM)5.87
EY3.61%
EPS(NY)8.13
Fwd EY5%
FCF(TTM)10.66
FCFY6.56%
OCF(TTM)11.79
OCFY7.25%
SpS22.82
BVpS29.57
TBVpS28.64
PEG (NY)0.75
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.53% | ||
| ROE | 16.97% | ||
| ROCE | 7.25% | ||
| ROIC | 5.59% | ||
| ROICexc | 5.89% | ||
| ROICexgc | 9.23% | ||
| OM | 28.07% | ||
| PM (TTM) | 21.99% | ||
| GM | N/A | ||
| FCFM | 46.73% |
ROA(3y)4.61%
ROA(5y)3.93%
ROE(3y)15.5%
ROE(5y)11.97%
ROIC(3y)4.75%
ROIC(5y)3.96%
ROICexc(3y)4.95%
ROICexc(5y)4.14%
ROICexgc(3y)7.96%
ROICexgc(5y)6.46%
ROCE(3y)6.16%
ROCE(5y)5.14%
ROICexcg growth 3Y4.17%
ROICexcg growth 5Y10.49%
ROICexc growth 3Y1.1%
ROICexc growth 5Y4.73%
OM growth 3Y4.56%
OM growth 5Y9.37%
PM growth 3Y4.72%
PM growth 5Y17.81%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 591.27% | ||
| Cap/Sales | 4.95% | ||
| Interest Coverage | 434.52 | ||
| Cash Conversion | 178.79% | ||
| Profit Quality | 212.53% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC9.11%
ROIC/WACC0.61
Cap/Depr(3y)179.25%
Cap/Depr(5y)306.32%
Cap/Sales(3y)2.07%
Cap/Sales(5y)2.95%
Profit Quality(3y)220.49%
Profit Quality(5y)315.8%
High Growth Momentum
Growth
EPS 1Y (TTM)47.49%
EPS 3Y35.41%
EPS 5Y23.66%
EPS Q2Q%71.56%
EPS Next Y37.05%
EPS Next 2Y26.41%
EPS Next 3Y21.23%
EPS Next 5YN/A
Revenue 1Y (TTM)50.51%
Revenue growth 3Y30.75%
Revenue growth 5Y37.35%
Sales Q2Q%20.13%
Revenue Next Year25.06%
Revenue Next 2Y23.12%
Revenue Next 3Y17.39%
Revenue Next 5YN/A
EBIT growth 1Y49.32%
EBIT growth 3Y36.71%
EBIT growth 5Y50.23%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y116.75%
FCF growth 3Y45.45%
FCF growth 5Y43.72%
OCF growth 1Y128.75%
OCF growth 3Y43.81%
OCF growth 5Y42.47%