KINSALE CAPITAL GROUP INC (KNSL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KNSL - US49714P1084 - Common Stock
386.67 USD
-15.73 (-3.91%)
386.67 USD
0 (0%)
KNSL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. KNSL has an excellent profitability rating, but there are concerns on its financial health. KNSL is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- In the past year KNSL was profitable.
- KNSL had a positive operating cash flow in the past year.
- Each year in the past 5 years KNSL has been profitable.
- KNSL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of KNSL (8.13%) is better than 94.59% of its industry peers.
- KNSL's Return On Equity of 25.42% is amongst the best of the industry. KNSL outperforms 91.89% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.64%, KNSL belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
- KNSL had an Average Return On Invested Capital over the past 3 years of 7.61%. This is significantly below the industry average of 14.94%.
- The 3 year average ROIC (7.61%) for KNSL is below the current ROIC(7.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 25.42% | ||
| ROIC | 7.64% |
ROA(3y)7.48%
ROA(5y)7.14%
ROE(3y)25.89%
ROE(5y)22.97%
ROIC(3y)7.61%
ROIC(5y)6.78%
1.3 Margins
- With an excellent Profit Margin value of 27.18%, KNSL belongs to the best of the industry, outperforming 97.97% of the companies in the same industry.
- In the last couple of years the Profit Margin of KNSL has grown nicely.
- The Operating Margin of KNSL (31.51%) is better than 93.92% of its industry peers.
- KNSL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.51% | ||
| PM (TTM) | 27.18% | ||
| GM | N/A |
OM growth 3Y5.55%
OM growth 5Y8.21%
PM growth 3Y3.58%
PM growth 5Y5.22%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KNSL is destroying value.
- Compared to 1 year ago, KNSL has more shares outstanding
- KNSL has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, KNSL has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of KNSL is 0.21, which is an excellent value as it means it would take KNSL, only 0.21 years of fcf income to pay off all of its debts.
- KNSL has a better Debt to FCF ratio (0.21) than 91.22% of its industry peers.
- KNSL has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.11, KNSL is doing good in the industry, outperforming 77.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC8.77%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- KNSL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.58%, which is quite good.
- The Earnings Per Share has been growing by 46.15% on average over the past years. This is a very strong growth
- Looking at the last year, KNSL shows a quite strong growth in Revenue. The Revenue has grown by 18.57% in the last year.
- The Revenue has been growing by 38.41% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)19.58%
EPS 3Y40.94%
EPS 5Y46.15%
EPS Q2Q%24.05%
Revenue 1Y (TTM)18.57%
Revenue growth 3Y34.73%
Revenue growth 5Y38.41%
Sales Q2Q%19%
3.2 Future
- KNSL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.92% yearly.
- Based on estimates for the next years, KNSL will show a quite strong growth in Revenue. The Revenue will grow by 10.76% on average per year.
EPS Next Y20.18%
EPS Next 2Y14.3%
EPS Next 3Y13.35%
EPS Next 5Y9.92%
Revenue Next Year16.61%
Revenue Next 2Y11.9%
Revenue Next 3Y11.17%
Revenue Next 5Y10.76%
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 decreasing.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 21.11, which indicates a rather expensive current valuation of KNSL.
- 70.95% of the companies in the same industry are cheaper than KNSL, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of KNSL to the average of the S&P500 Index (28.87), we can say KNSL is valued slightly cheaper.
- KNSL is valuated rather expensively with a Price/Forward Earnings ratio of 18.42.
- 70.27% of the companies in the same industry are cheaper than KNSL, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, KNSL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.11 | ||
| Fwd PE | 18.42 |
4.2 Price Multiples
- 62.84% of the companies in the same industry are cheaper than KNSL, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KNSL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.35 | ||
| EV/EBITDA | 16.25 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- KNSL has an outstanding profitability rating, which may justify a higher PE ratio.
- KNSL's earnings are expected to grow with 13.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)0.46
EPS Next 2Y14.3%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.17%, KNSL is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.41, KNSL is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, KNSL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
5.2 History
- On average, the dividend of KNSL grows each year by 13.48%, which is quite nice.
- KNSL has been paying a dividend for at least 10 years, so it has a reliable track record.
- KNSL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)13.48%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
- 3.24% of the earnings are spent on dividend by KNSL. This is a low number and sustainable payout ratio.
- KNSL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP3.24%
EPS Next 2Y14.3%
EPS Next 3Y13.35%
KINSALE CAPITAL GROUP INC / KNSL FAQ
What is the fundamental rating for KNSL stock?
ChartMill assigns a fundamental rating of 5 / 10 to KNSL.
What is the valuation status of KINSALE CAPITAL GROUP INC (KNSL) stock?
ChartMill assigns a valuation rating of 3 / 10 to KINSALE CAPITAL GROUP INC (KNSL). This can be considered as Overvalued.
What is the profitability of KNSL stock?
KINSALE CAPITAL GROUP INC (KNSL) has a profitability rating of 8 / 10.
What is the earnings growth outlook for KINSALE CAPITAL GROUP INC?
The Earnings per Share (EPS) of KINSALE CAPITAL GROUP INC (KNSL) is expected to grow by 20.18% in the next year.
Can you provide the dividend sustainability for KNSL stock?
The dividend rating of KINSALE CAPITAL GROUP INC (KNSL) is 4 / 10 and the dividend payout ratio is 3.24%.