Palomar Holdings, Inc.
Palomar Holdings, Inc. Fundamental Analysis
Palomar Holdings, Inc. (PLMR) shows strong financial fundamentals with a PE ratio of 16.29, profit margin of 22.56%, and ROE of 22.79%. The company generates $0.9B in annual revenue with strong year-over-year growth of 47.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 90.0/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze PLMR's fundamental strength across five key dimensions:
Efficiency Score
WeakPLMR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPLMR trades at attractive valuation levels.
Growth Score
ExcellentPLMR delivers strong and consistent growth momentum.
Financial Health Score
ModeratePLMR shows balanced financial health with some risks.
Profitability Score
ExcellentPLMR achieves industry-leading margins.
Key Financial Metrics
Is PLMR Expensive or Cheap?
P/E Ratio
PLMR trades at 16.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PLMR's PEG of 1.34 indicates fair valuation.
Price to Book
The market values Palomar Holdings, Inc. at 3.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.03 times EBITDA. This signals the market has high growth expectations.
How Well Does PLMR Make Money?
Net Profit Margin
For every $100 in sales, Palomar Holdings, Inc. keeps $22.56 as profit after all expenses.
Operating Margin
Core operations generate 29.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.79 in profit for every $100 of shareholder equity.
ROA
Palomar Holdings, Inc. generates $8.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Palomar Holdings, Inc. generates strong operating cash flow of $364.24M, reflecting robust business health.
Free Cash Flow
Palomar Holdings, Inc. generates strong free cash flow of $358.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $13.52 in free cash annually.
FCF Yield
PLMR converts 11.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How PLMR Stacks Against Its Sector Peers
| Metric | PLMR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.29 | 18.86 | Better (Cheaper) |
| ROE | 22.79% | 847.00% | Weak |
| Net Margin | 22.56% | 4202.00% | Weak |
| Debt/Equity | 0.00 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 8.85% | -21543.00% (disorted) | Weak |
PLMR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Palomar Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
311.89%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
832.68%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
427.66%
Industry Style: Value, Dividend, Cyclical
High Growth