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 145 industry peers in the Insurance industry. PLMR has an excellent profitability rating, but there are some minor concerns on its financial health. PLMR is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
In the past 5 years PLMR has always been profitable.
Each year in the past 5 years PLMR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.53%, PLMR belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
PLMR has a better Return On Equity (16.97%) than 77.93% of its industry peers.
With an excellent Return On Invested Capital value of 5.59%, PLMR belongs to the best of the industry, outperforming 84.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PLMR is in line with the industry average of 4.07%.
The last Return On Invested Capital (5.59%) for PLMR is above the 3 year average (4.75%), which is a sign of increasing profitability.
| 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
The Profit Margin of PLMR (21.99%) is better than 93.10% of its industry peers.
PLMR's Profit Margin has improved in the last couple of years.
The Operating Margin of PLMR (28.07%) is better than 93.79% of its industry peers.
In the last couple of years the Operating Margin of PLMR has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PLMR is destroying value.
Compared to 1 year ago, PLMR has more shares outstanding
PLMR has more shares outstanding than it did 5 years ago.
PLMR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
PLMR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.62
WACC9.03%
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%.
PLMR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 37.35% yearly.
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
Based on estimates for the next years, PLMR will show a very strong growth in Earnings Per Share. The EPS will grow by 23.58% on average per year.
PLMR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.35% yearly.
EPS Next Y40%
EPS Next 2Y27.5%
EPS Next 3Y23.58%
EPS Next 5YN/A
Revenue Next Year25.06%
Revenue Next 2Y23.33%
Revenue Next 3Y20.35%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
Based on the Price/Earnings ratio of 24.17, the valuation of PLMR can be described as rather expensive.
70.34% of the companies in the same industry are cheaper than PLMR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, PLMR is valued at the same level.
The Price/Forward Earnings ratio is 17.15, which indicates a rather expensive current valuation of PLMR.
66.21% of the companies in the same industry are cheaper than PLMR, based on the Price/Forward Earnings ratio.
PLMR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 17.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PLMR indicates a slightly more expensive valuation: PLMR is more expensive than 62.07% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PLMR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.31 | ||
| EV/EBITDA | 20.73 |
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 23.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)1.02
EPS Next 2Y27.5%
EPS Next 3Y23.58%
5. Dividend
5.1 Amount
No dividends for PLMR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
141.88
+0.71 (+0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners93.88%
Inst Owner Change0%
Ins Owners2.44%
Ins Owner Change4.17%
Market Cap3.79B
Analysts80
Price Target189.31 (33.43%)
Short Float %2.29%
Short Ratio1.88
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)0%
PT rev (3m)25.41%
EPS NQ rev (1m)-1.2%
EPS NQ rev (3m)4.38%
EPS NY rev (1m)2.15%
EPS NY rev (3m)6.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 17.15 | ||
| P/S | 6.22 | ||
| P/FCF | 13.31 | ||
| P/OCF | 12.04 | ||
| P/B | 4.8 | ||
| P/tB | 4.96 | ||
| EV/EBITDA | 20.73 |
EPS(TTM)5.87
EY4.14%
EPS(NY)8.27
Fwd EY5.83%
FCF(TTM)10.66
FCFY7.51%
OCF(TTM)11.79
OCFY8.31%
SpS22.81
BVpS29.56
TBVpS28.63
PEG (NY)0.6
PEG (5Y)1.02
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
WACC9.03%
ROIC/WACC0.62
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 Y40%
EPS Next 2Y27.5%
EPS Next 3Y23.58%
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 2Y23.33%
Revenue Next 3Y20.35%
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%