Bowhead Specialty Holdings Inc.
Bowhead Specialty Holdings Inc. Fundamental Analysis
Bowhead Specialty Holdings Inc. (BOW) shows moderate financial fundamentals with a PE ratio of 13.77, profit margin of 9.75%, and ROE of 12.83%. The company generates $0.6B in annual revenue with strong year-over-year growth of 29.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BOW's fundamental strength across five key dimensions:
Efficiency Score
WeakBOW struggles to generate sufficient returns from assets.
Valuation Score
ModerateBOW shows balanced valuation metrics.
Growth Score
ModerateBOW shows steady but slowing expansion.
Financial Health Score
ExcellentBOW maintains a strong and stable balance sheet.
Profitability Score
WeakBOW struggles to sustain strong margins.
Key Financial Metrics
Is BOW Expensive or Cheap?
P/E Ratio
BOW trades at 13.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BOW's PEG of 7.39 indicates potential overvaluation.
Price to Book
The market values Bowhead Specialty Holdings Inc. at 1.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.80 times EBITDA. This signals the market has high growth expectations.
How Well Does BOW Make Money?
Net Profit Margin
For every $100 in sales, Bowhead Specialty Holdings Inc. keeps $9.75 as profit after all expenses.
Operating Margin
Core operations generate 12.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.83 in profit for every $100 of shareholder equity.
ROA
Bowhead Specialty Holdings Inc. generates $2.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bowhead Specialty Holdings Inc. generates strong operating cash flow of $329.76M, reflecting robust business health.
Free Cash Flow
Bowhead Specialty Holdings Inc. generates strong free cash flow of $324.19M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.89 in free cash annually.
FCF Yield
BOW converts 44.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5110.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How BOW Stacks Against Its Sector Peers
| Metric | BOW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.77 | 18.50 | Better (Cheaper) |
| ROE | 12.83% | 809.00% | Weak |
| Net Margin | 9.75% | 2211.00% | Weak |
| Debt/Equity | 0.00 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 5110.75 | 691.82 | Strong Liquidity |
| ROA | 2.27% | -24320.00% (disorted) | Weak |
BOW outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bowhead Specialty Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
182.78%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
359.59%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
Declining