KINSALE CAPITAL GROUP INC (KNSL) Stock Fundamental Analysis
NYSE:KNSL - New York Stock Exchange, Inc. - US49714P1084 - Common Stock - Currency: USD
KNSL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 144 industry peers in the Insurance industry. While KNSL has a great profitability rating, there are quite some concerns on its financial health. KNSL is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
KNSL had positive earnings in the past year.
KNSL had a positive operating cash flow in the past year.
Each year in the past 5 years KNSL has been profitable.
In the past 5 years KNSL always reported a positive cash flow from operatings.
1.2 Ratios
KNSL has a better Return On Assets (8.49%) than 96.53% of its industry peers.
KNSL has a Return On Equity of 27.96%. This is amongst the best in the industry. KNSL outperforms 93.75% of its industry peers.
KNSL has a Return On Invested Capital of 7.98%. This is amongst the best in the industry. KNSL outperforms 90.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KNSL is above the industry average of 4.07%.
The last Return On Invested Capital (7.98%) for KNSL is above the 3 year average (7.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 27.96% | ||
| ROIC | 7.98% |
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 26.91%, KNSL belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
KNSL's Profit Margin has improved in the last couple of years.
The Operating Margin of KNSL (31.11%) is better than 95.14% of its industry peers.
KNSL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.11% | ||
| PM (TTM) | 26.91% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KNSL is destroying value.
KNSL has more shares outstanding than it did 1 year ago.
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 0.19, which is an excellent value as it means it would take KNSL, only 0.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KNSL (0.19) is better than 90.28% of its industry peers.
KNSL has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.12, KNSL is doing good in the industry, outperforming 78.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | N/A |
ROIC/WACC0.84
WACC9.46%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.06% over the past year.
KNSL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.15% yearly.
The Revenue has grown by 23.34% in the past year. This is a very strong growth!
Measured over the past years, KNSL shows a very strong growth in Revenue. The Revenue has been growing by 38.41% on average per year.
EPS 1Y (TTM)20.06%
EPS 3Y40.94%
EPS 5Y46.15%
EPS Q2Q%6%
Revenue 1Y (TTM)23.34%
Revenue growth 3Y34.73%
Revenue growth 5Y38.41%
Sales Q2Q%13.57%
3.2 Future
Based on estimates for the next years, KNSL will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.34% on average per year.
The Revenue is expected to grow by 13.13% on average over the next years. This is quite good.
EPS Next Y11.94%
EPS Next 2Y13.59%
EPS Next 3Y13.34%
EPS Next 5YN/A
Revenue Next Year10.27%
Revenue Next 2Y11.62%
Revenue Next 3Y13.13%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
KNSL is valuated quite expensively with a Price/Earnings ratio of 29.25.
Based on the Price/Earnings ratio, KNSL is valued a bit more expensive than the industry average as 75.69% of the companies are valued more cheaply.
KNSL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 22.96, the valuation of KNSL can be described as rather expensive.
73.61% of the companies in the same industry are cheaper than KNSL, based on the Price/Forward Earnings ratio.
KNSL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 22.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KNSL indicates a slightly more expensive valuation: KNSL is more expensive than 65.28% of the companies listed in the same industry.
KNSL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.65 | ||
| EV/EBITDA | 22.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of KNSL may justify a higher PE ratio.
KNSL's earnings are expected to grow with 13.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.45
PEG (5Y)0.63
EPS Next 2Y13.59%
EPS Next 3Y13.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.14%, KNSL is not a good candidate for dividend investing.
KNSL's Dividend Yield is slightly below the industry average, which is at 3.51.
Compared to an average S&P500 Dividend Yield of 2.42, KNSL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
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.
As KNSL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)13.48%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
3.36% of the earnings are spent on dividend by KNSL. This is a low number and sustainable payout ratio.
The dividend of KNSL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP3.36%
EPS Next 2Y13.59%
EPS Next 3Y13.34%
476.16
+3.03 (+0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.06%
Inst Owner Change3.18%
Ins Owners5.29%
Ins Owner Change0.91%
Market Cap11.10B
Analysts72.22
Price Target488.73 (2.64%)
Short Float %7.61%
Short Ratio7.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Yearly Dividend0.6
Dividend Growth(5Y)13.48%
DP3.36%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.36%
Min EPS beat(2)4.33%
Max EPS beat(2)14.39%
EPS beat(4)4
Avg EPS beat(4)6.42%
Min EPS beat(4)2.67%
Max EPS beat(4)14.39%
EPS beat(8)8
Avg EPS beat(8)9.29%
EPS beat(12)12
Avg EPS beat(12)11.5%
EPS beat(16)16
Avg EPS beat(16)16.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)2.26%
Revenue beat(4)3
Avg Revenue beat(4)0.95%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)3.37%
Revenue beat(8)5
Avg Revenue beat(8)0.38%
Revenue beat(12)8
Avg Revenue beat(12)1.14%
Revenue beat(16)11
Avg Revenue beat(16)2.08%
PT rev (1m)2.22%
PT rev (3m)-1.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 22.96 | ||
| P/S | 7.2 | ||
| P/FCF | 11.65 | ||
| P/OCF | 11.37 | ||
| P/B | 7.48 | ||
| P/tB | 7.5 | ||
| EV/EBITDA | 22.87 |
EPS(TTM)16.28
EY3.42%
EPS(NY)20.73
Fwd EY4.35%
FCF(TTM)40.86
FCFY8.58%
OCF(TTM)41.88
OCFY8.8%
SpS66.14
BVpS63.64
TBVpS63.49
PEG (NY)2.45
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 27.96% | ||
| ROCE | 9.93% | ||
| ROIC | 7.98% | ||
| ROICexc | 8.17% | ||
| ROICexgc | 8.98% | ||
| OM | 31.11% | ||
| PM (TTM) | 26.91% | ||
| GM | N/A | ||
| FCFM | 61.77% |
ROA(3y)7.48%
ROA(5y)7.14%
ROE(3y)25.89%
ROE(5y)22.97%
ROIC(3y)7.61%
ROIC(5y)6.78%
ROICexc(3y)7.91%
ROICexc(5y)7.09%
ROICexgc(3y)8.76%
ROICexgc(5y)7.83%
ROCE(3y)9.47%
ROCE(5y)8.43%
ROICexcg growth 3Y4.55%
ROICexcg growth 5Y9.08%
ROICexc growth 3Y4.66%
ROICexc growth 5Y9.3%
OM growth 3Y5.55%
OM growth 5Y8.21%
PM growth 3Y3.58%
PM growth 5Y5.22%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.19 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | 412.67% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 46.56 | ||
| Cash Conversion | 201.15% | ||
| Profit Quality | 229.57% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC9.46%
ROIC/WACC0.84
Cap/Depr(3y)289.36%
Cap/Depr(5y)642.64%
Cap/Sales(3y)0.97%
Cap/Sales(5y)2.25%
Profit Quality(3y)284.25%
Profit Quality(5y)278.99%
High Growth Momentum
Growth
EPS 1Y (TTM)20.06%
EPS 3Y40.94%
EPS 5Y46.15%
EPS Q2Q%6%
EPS Next Y11.94%
EPS Next 2Y13.59%
EPS Next 3Y13.34%
EPS Next 5YN/A
Revenue 1Y (TTM)23.34%
Revenue growth 3Y34.73%
Revenue growth 5Y38.41%
Sales Q2Q%13.57%
Revenue Next Year10.27%
Revenue Next 2Y11.62%
Revenue Next 3Y13.13%
Revenue Next 5YN/A
EBIT growth 1Y26.99%
EBIT growth 3Y42.2%
EBIT growth 5Y49.77%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y11.62%
FCF growth 3Y33.41%
FCF growth 5Y43.1%
OCF growth 1Y13.55%
OCF growth 3Y33.86%
OCF growth 5Y40.49%