Accelerant Holdings Class A (ARX) AI Stock Analysis

• Market Cap: $2.70B
• Dividend Yield: N/A
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 451
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 0.38
• Shares Outstanding: 112,745,130
• 10 Day Avg. Volume: 1,059,102
• 30 Day Avg. Volume: 1,188,137
• PEG Ratio: -1.04
• Price to Book (P/B): 10.76
• Price to Sales (P/S): 7.52
• P/FCF Ratio: 5.86
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $22.00
• Price Target Upside: 75.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $14.00 ▲(11.64% Upside)

Accelerant Holdings Class A demonstrates strong financial performance and positive earnings call sentiment, which are significant strengths. However, bearish technical indicators and the absence of valuation metrics temper the overall score. The company's growth prospects remain promising, but market conditions and partner dependencies warrant caution.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and providing a buffer against economic downturns.

Technology Investments

Investments in technology improve operational efficiency and product offerings, strengthening competitive advantage and customer satisfaction.

Negative Factors

FX Impact on Net Income

Negative FX impacts can reduce net income and create earnings volatility, affecting financial predictability and investor confidence.

Dependence on Specific Partners

Reliance on specific partners can pose risks if partnerships change, potentially disrupting revenue streams and strategic initiatives.

Margin Improvement Needs

Improving margins is crucial for sustaining profitability, as it affects the company's ability to reinvest in growth and withstand cost pressures.

Accelerant Holdings Class A Business Overview & Revenue Model

Company Description

Accelerant Holdings Class A (ARX) is a financial services company focused on providing innovative insurance solutions and risk management services. The company operates primarily in the insurance sector, leveraging advanced technology and data analytics to deliver tailored insurance products to a wide range of clients, including businesses and individuals. With a commitment to enhancing the efficiency and effectiveness of insurance underwriting, Accelerant Holdings aims to facilitate better risk assessment and coverage options for its customers.

How the Company Makes Money

Accelerant Holdings generates revenue primarily through the underwriting of insurance policies, where it collects premiums from policyholders in exchange for coverage against specified risks. The company employs a data-driven approach to assess risk accurately, which helps in setting competitive premium rates while maintaining profitability. Additionally, Accelerant may earn income through investment returns on the premiums it collects before claims are paid. Strategic partnerships with other insurance providers and technology firms also contribute to its revenue model, allowing for shared resources and expanded market reach. The ongoing development of proprietary technology and platforms may provide additional revenue opportunities through licensing or service fees.

Accelerant Holdings Class A Financial Statement Overview

Summary

Accelerant Holdings Class A exhibits strong financial performance with impressive revenue growth and improved profitability. The balance sheet is stable, and cash flow generation is robust, providing a solid foundation for future growth. However, there is room for improvement in margins and leverage management.

Income Statement

Accelerant Holdings Class A has shown impressive revenue growth, with a significant increase in total revenue over the past year. The company has transitioned from a net loss to a net profit, indicating improved profitability. Gross profit margins remain strong, although there is room for improvement in EBIT and EBITDA margins. Overall, the income statement reflects a positive growth trajectory and improving profitability.

Balance Sheet

The balance sheet of Accelerant Holdings Class A shows a stable financial position with a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has turned positive, reflecting improved efficiency in generating profits from shareholders' equity. The equity ratio is healthy, suggesting a strong capital structure. However, there is a need to maintain this stability to mitigate potential risks.

Cash Flow

The cash flow statement reveals robust free cash flow growth, demonstrating strong cash generation capabilities. The free cash flow to net income ratio is high, indicating efficient conversion of profits into cash. Operating cash flow has significantly increased, supporting the company's operational needs. Overall, the cash flow position is strong, providing a solid foundation for future investments and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	374.90M	584.64M	325.50M	213.10M	103.20M
Gross Profit	243.10M	335.94M	195.30M	78.60M	63.50M
EBITDA	64.60M	77.94M	-18.50M	-74.30M	-15.50M
Net Income	15.30M	27.20M	-48.80M	-91.70M	-21.50M
Balance Sheet
Total Assets	7.50B	6.09B	3.74B	2.20B	1.16B
Cash, Cash Equivalents and Short-Term Investments	2.21B	1.82B	869.90M	509.00M	340.10M
Total Debt	126.70M	121.40M	120.30M	100.50M	49.90M
Total Liabilities	7.01B	5.67B	3.45B	1.85B	899.40M
Stockholders Equity	450.60M	408.70M	310.50M	354.50M	257.90M
Cash Flow
Free Cash Flow	292.00M	751.10M	257.30M	39.00M	98.00M
Operating Cash Flow	309.30M	785.50M	289.90M	65.70M	112.70M
Investing Cash Flow	-182.80M	-380.10M	-11.70M	-147.50M	-132.50M
Financing Cash Flow	900.00K	110.30M	10.30M	254.70M	233.70M

Accelerant Holdings Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARX	71 Outperform	$2.70B	―	―	―	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HUIZ	57 Neutral	$33.30M	13.16	4.56%	―	19.30%	-17.56%
SLQT	49 Neutral	$279.80M	―	15.11%	―	13.16%	―
EHTH	45 Neutral	$124.91M	111.59	5.88%	―	16.79%	―
GOCO	42 Neutral	$54.36M	―	-13.38%	―	17.46%	60.17%
TIRX	41 Neutral	$26.98M	-1.75	-11.18%	―	624.24%	85.46%

Accelerant Holdings Class A Corporate Events

Accelerant Holdings Reports Strong Q2 Growth Amid FX Concerns

The recent earnings call for Accelerant Holdings Class A was marked by a generally positive sentiment, underscored by robust growth in premiums and revenue, improved margins, and successful expansions. However, concerns were raised regarding the impact of foreign exchange (FX) on net income and the company’s reliance on specific partners. Overall, the sentiment was optimistic, albeit with certain areas warranting attention.

Accelerant Holdings Reports Strong Q2 2025 Results

Accelerant Holdings is a technology company that operates a data-driven risk exchange platform for the specialty insurance market, connecting underwriters with risk capital providers across 22 countries and over 500 specialty insurance products.