Palomar Holdings Intrinsic Value – Palomar Holdings Reports Strong Non-GAAP EPS, Revenue Falls Short of Expectations
May 4, 2023
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The investment and insurance technology company is based in San Diego, California and provides private equity investments to help companies grow and acquire new technologies. Palomar Holdings ($NASDAQ:PLMR) has had a positive outlook so far this year, with their stock price up more than 50% since early January. Despite the revenue shortfall, investors remain bullish on the company and are optimistic that the strong Non-GAAP EPS results are further indication of their strength in the industry. Looking ahead, Palomar Holdings is expected to continue to invest in technology to help them build on their success.
Earnings
In PALOMAR HOLDINGS‘ latest earnings report for FY2022 Q4 as of December 31 2022, the company reported a total revenue of 88.63M USD and 18.76M USD in net income. This represented a 21.1% increase in total revenue and a 12.8% increase in net income compared to the same period last year. In the last three years, PALOMAR HOLDINGS’ total revenue has grown from 42.3M USD to 88.63M USD. While these figures represent strong non-GAAP EPS, the total revenue fell short of expectations.
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 |
| 327.09 | 52.17 | 15.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Palomar Holdings. More…
| Operations | Investing | Financing |
| 169.58 | -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 |
| 1.31k | 921.7 | 15.37 |
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 |
| 42.4% | – | 20.9% |
| FCF Margin | ROE | ROA |
| 50.0% | 11.4% | 3.3% |
Share Price
This was despite revenue falling short of expectations due to the ongoing impact of the COVID-19 pandemic. The company’s stock opened at $49.3 and closed at $49.6, up 1.8% from the previous closing price of 48.7. This decline was attributed to the drop in sales in their insurance business segment as a result of the pandemic.
Despite the mixed results, investors were buoyed by the strong non-GAAP earnings as well as optimism about future growth prospects for Palomar Holdings. With a number of initiatives in place to expand its offerings into new markets, the company is well positioned to capitalize on any potential upside from a post-pandemic recovery. Live Quote…
Analysis – Palomar Holdings Intrinsic Value
At GoodWhale, we have conducted an analysis of PALOMAR HOLDINGS‘s fundamentals and have determined that the intrinsic value of one PALOMAR HOLDINGS share is around $112.1. This figure has been calculated using our proprietary Valuation Line. Currently, PALOMAR HOLDINGS stock is being traded at $49.6, and this represents a significant undervaluation of 55.8%. More…
Peers
The Company’s segments include Insurance, Reinsurance and Corporate. The Company’s insurance subsidiaries provide property and casualty insurance in the non-standard personal automobile insurance market. The Company’s reinsurance subsidiaries provide excess and surplus lines reinsurance. The Company’s Corporate segment includes the operations of Palomar Specialty Insurance Company (PSIC), which is a captive reinsurance company. The Company’s competitors include United Insurance Holdings Corp, Heritage Insurance Holdings Inc, Universal Insurance Holdings Inc.
– United Insurance Holdings Corp ($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, a publicly-traded company, reported its latest financial results and they showed a beat on non-GAAP earnings. Earnings per share (EPS) of $0.80 exceeded the analysts’ consensus estimates by $0.06. The underwhelming revenue performance was partially offset by the beat on EPS, which implies that the company is managing its costs effectively. Investors should analyze the latest figures and consider their investments in Palomar Holdings accordingly.
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