Palomar Holdings Intrinsic Value – PALOMAR HOLDINGS Reports 2nd Quarter Earnings for FY2023
August 15, 2023
🌥️Earnings Overview
On August 2 2023, PALOMAR HOLDINGS ($NASDAQ:PLMR) announced their earnings results for the second quarter of FY2023, ending June 30 2023. Revenue was reported at USD 90.4 million, a 13.5% increase from the same quarter of the previous year. Net income also rose 20.4%, clocking in at USD 17.6 million.
Stock Price
The company’s stock opened at $59.6 and closed at $60.0, down by a marginal 0.3% from the previous closing price of $60.2. This slight dip was largely attributed to the uncertainty in the stock market due to the ongoing pandemic. Despite the negative sentiment surrounding PALOMAR HOLDINGS stock, their reported earnings were strong. This marks the company’s best quarter yet in terms of profitability and is a testament to their strong management team and innovative strategies.
The increased revenue and net income were driven by the company’s investments into new technology and research & development projects. These results suggest that PALOMAR HOLDINGS is well-positioned to capitalize on the economic recovery as it continues to strengthen its foothold in the market. The company’s strong financial performance and robust management team further suggest that the stock can remain resilient and continue to increase in value for the foreseeable future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Palomar Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 348.91 | 57.92 | 16.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Palomar Holdings. More…
| Operations | Investing | Financing |
| 137.83 | -156.81 | 5.02 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Palomar Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.55k | 1.13k | 16.69 |
Key Ratios Snapshot
Some of the financial key ratios for Palomar Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 33.6% | – | 22.5% |
| FCF Margin | ROE | ROA |
| 37.7% | 12.0% | 3.2% |
Analysis – Palomar Holdings Intrinsic Value
GoodWhale has conducted an analysis of PALOMAR HOLDINGS‘ financials and determined that the intrinsic value of PALOMAR HOLDINGS share is around $108.7. This valuation was calculated using GoodWhale’s proprietary Valuation Line. Currently, PALOMAR HOLDINGS stock is trading at $60.0, meaning it is undervalued by 44.8%. This presents an opportunity for investors to capitalize on the stock’s undervaluation and potentially earn a return. More…
Peers
The Company’s segments include Insurance, Reinsurance and Corporate. The Company’s insurance subsidiaries provide property and casualty insurance in the non-standard personal automobile insurance market. The Company’s reinsurance subsidiaries provide excess and surplus lines reinsurance. The Company’s Corporate segment includes the operations of Palomar Specialty Insurance Company (PSIC), which is a captive reinsurance company. The Company’s competitors include United Insurance Holdings Corp, Heritage Insurance Holdings Inc, Universal Insurance Holdings Inc.
– United Insurance Holdings Corp ($NASDAQ:UIHC)
United Insurance Holdings Corp is a property and casualty insurance holding company. The Company through its subsidiaries is engaged in providing property and casualty insurance to policyholders in the United States. As of December 31, 2016, the Company’s primary insurance subsidiaries had an A.M. Best rating of A- (Excellent).
– Heritage Insurance Holdings Inc ($NYSE:HRTG)
Heritage Insurance Holdings Inc is a Florida-based insurance holding company that offers property and casualty insurance in the United States through its subsidiaries. The company has a market cap of $37.99 million and a return on equity of -49.54%. Heritage Insurance Holdings Inc offers a range of personal and commercial insurance products, including home, auto, and business insurance. The company’s products are available through a network of independent insurance agents.
– Universal Insurance Holdings Inc ($NYSE:UVE)
As of 2022, Universal Insurance Holdings Inc has a market cap of 280.44M. The company is a holding company that operates through its subsidiaries to provide property and casualty insurance protection to homeowners, condominium owners, and renters in the United States.
Summary
PALOMAR HOLDINGS has seen significant growth in the second quarter of FY2023, with total revenue up 13.5% and net income up 20.4% year-on-year. This is a positive sign for investors in the company, demonstrating strong performance in both sales and profitability. The company’s strong financials and potential for further growth make it an attractive option for those looking to invest in the stock market. With careful analysis and a long-term view, investors can be confident that PALOMAR HOLDINGS is a sound investment choice.
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