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Conifer Holdings (CNFR)
NASDAQ:CNFR
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Conifer Holdings
(NASDAQ:CNFR)
48Neutral
Conifer Holdings (CNFR) vs. S&P 500 (SPY)
Market Cap
$8.56M
Dividend YieldN/A
Average Volume (3M)38.98K
Price to Earnings (P/E)0.4
Beta (1Y)0.04
Revenue Growth-18.97%
EPS GrowthN/A
CountryUS
Employees9
SectorFinancial
Sector Strength88
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.93
Shares Outstanding12,222,881
10 Day Avg. Volume50,272
30 Day Avg. Volume38,985
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.08
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit0.39
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Conifer Holdings Business Overview & Revenue Model
Company DescriptionConifer Holdings, Inc., an insurance holding company, engages in the sale of property and casualty insurance products. It offers insurance coverage in specialty commercial and personal product lines. The company underwrites various specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. It serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, including companies that provide security guard services, security alarm products and services, and private investigative services. The company also offers specialty homeowners insurance products, such as low- value dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wholesale agency services comprising commercial and personal lines insurance products for its insurance company subsidiaries, as well as third party insurers. Conifer Holdings, Inc. markets and sells its insurance products through a network of approximately 4,600 independent agents in 50 states in the United States. The company was incorporated in 2009 and is headquartered in Birmingham, Michigan.
How the Company Makes MoneyConifer Holdings makes money by underwriting and selling specialty insurance products through its subsidiary insurance companies. The company's primary revenue streams include premiums collected from policyholders in exchange for coverage against specified risks. Additionally, Conifer Holdings earns investment income from the management of its insurance float, which consists of money held in reserve for claims that have not yet been paid out. The company also benefits from reinsurance arrangements that help manage risk and stabilize earnings. Key factors contributing to its earnings include its ability to accurately assess risk, set competitive premium rates, and manage claims efficiently. Conifer Holdings may also engage in partnerships with independent agents and brokers to expand its distribution network and reach a broader client base.
Conifer Holdings Financial Statement Overview
Summary
Conifer Holdings is facing significant challenges in profitability and revenue growth, as evidenced by declining income statement metrics. The balance sheet shows improvement with reduced leverage, although returns on equity remain insufficient. Recent positive free cash flow is encouraging, but sustainable operational performance is a concern.Income Statement
Conifer Holdings has experienced a significant decline in revenue over the years, highlighting challenges in maintaining top-line growth. The negative net profit margin and negative EBIT and EBITDA margins indicate ongoing profitability issues, as the company struggles to manage costs effectively.45
Neutral
Balance Sheet
The company's balance sheet shows a relatively low debt-to-equity ratio due to recent debt reductions, which is a positive sign of financial health. However, the return on equity is negative, reflecting the company's ongoing net losses. The equity ratio is also relatively low, indicating potential risks associated with leverage.60
Neutral
Cash Flow
Conifer Holdings has shown positive free cash flow in the most recent year, a significant improvement from prior periods. However, the company's operating cash flow to net income ratio remains concerning due to ongoing net losses, highlighting challenges in generating cash from operations.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 67.27M | 98.76M | 104.89M | 118.59M | 107.33M | Gross Profit |
| 67.27M | 98.76M | 104.89M | 118.59M | 107.33M | EBIT |
| -34.24M | 0.00 | -17.20M | -15.22M | -2.27M | EBITDA |
| -34.24M | -21.89M | -17.10M | 1.56M | 3.12M | Net Income Common Stockholders |
| 24.35M | -25.90M | -11.05M | -1.92M | -244.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 27.65M | 31.96M | 164.16M | 182.71M | 173.51M | Total Assets |
| 281.66M | 311.80M | 312.35M | 290.40M | 261.60M | Total Debt |
| 0.00 | 25.06M | 33.88M | 33.56M | 41.00M | Net Debt |
| -27.65M | 13.94M | 5.84M | 23.65M | 32.80M | Total Liabilities |
| 260.13M | 308.92M | 293.40M | 249.90M | 217.18M | Stockholders Equity |
| 21.52M | 2.89M | 18.95M | 40.50M | 44.41M |
| Cash Flow | Free Cash Flow | |||
| 3.19M | -13.39M | -70.79M | 6.36M | 2.90M | Operating Cash Flow |
| 3.19M | -13.39M | -40.47M | 5.36M | 2.98M | Investing Cash Flow |
| 70.29M | -272.00K | 56.50M | 1.38M | -7.34M | Financing Cash Flow |
| -21.09M | -3.25M | 2.09M | -5.01M | 5.08M |
Conifer Holdings Technical Analysis
Neutral
0.70
Price Trends
0.73
Negative
0.89
Negative
0.97
Negative
Market Momentum
>-0.01
Negative
54.17
Neutral
53.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNFR, the sentiment is Neutral. The current price of 0.7 is above the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.73, and below the 200-day MA of 0.97, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 53.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNFR.
Conifer Holdings Risk Analysis
Conifer Holdings disclosed 51 risk factors in its most recent earnings report. Conifer Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Conifer Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $603.75M | 9.70 | 24.08% | ― | 10.84% | 16.40% | |
67 Neutral | $405.36M | 9.10 | 6.46% | 4.92% | -16.46% | 69.94% | |
64 Neutral | $245.37M | 12.31 | 36.28% | ― | 10.69% | ― | |
64 Neutral | $12.64B | 9.74 | 8.05% | 17044.60% | 12.66% | -4.62% | |
56 Neutral | $564.73M | 7.46 | 37.69% | ― | 1.00% | -77.16% | |
48 Neutral | $8.56M | 0.36 | -291.99% | ― | -18.97% | ― | |
46 Neutral | $267.22M | 53.72 | 2.47% | ― | -6.46% | ― |
* Financial Sector Average
Performance Comparison
CNFR
Conifer Holdings
0.70
-0.17
-19.54%
GBLI
Global Indemnity
28.43
-2.61
-8.41%
KINS
Kingstone Companies
17.87
13.77
335.85%
ACIC
American Coastal Insurance
11.69
1.73
17.37%
HRTG
Heritage Insurance Holdings
19.48
11.26
136.98%
NODK
NI Holdings
12.91
-1.91
-12.89%
Conifer Holdings Earnings Call Summary
Earnings Call Date:Mar 28, 2025
(Q2-2024)
| % Change Since: 2.94%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Neutral
The call highlighted a strategic shift towards a more sustainable revenue model and improved expense management, but also detailed significant declines in gross written premiums, continued net losses, and impacts from adverse weather conditions. The sentiment reflects cautious optimism with ongoing challenges.Q2-2024 Updates
Positive Updates
Strategic Shift to Commission-Based Revenue Model
Conifer has strategically shifted towards a commission-based revenue model through their managing general agency, Conifer Insurance Services, focusing on more stable and predictable revenue streams rather than the traditional risk-bearing carrier revenue model.
Improved Expense Ratio
The expense ratio improved to 32% in the second quarter, down 580 basis points from the same period last year, and well below the near-term target of 35%.
Increase in Agency Commission Revenue
Agency commission in the second quarter rose significantly to nearly $9 million compared to $211,000 in the second quarter of 2023, showcasing progress in driving commission-based revenue.
Net Investment Income Growth
Net investment income was $1.5 million during the second quarter, up 11% from $1.4 million in the prior year period.
Negative Updates
Decrease in Gross Written Premium
Gross written premium decreased 58% to $19 million, reflecting the strategic decision to reduce premium leverage on operating subsidiaries.
High Combined Ratio
The overall combined ratio was 124% in the second quarter, impacted by the Oklahoma storms, indicating higher costs relative to premiums earned.
Net Loss for the Quarter
The company reported a net loss allocable to common shareholders of $4 million or $0.32 per share, and an adjusted operating loss of $3.6 million or $0.30 per share for the second quarter of 2024.
Decrease in Fair Value of Investments
There was a $196,000 decrease in the fair value of equity investments in the second quarter, leading to a net realized investment loss of $118,000.
Company Guidance
During Conifer Holdings' Q2 2024 earnings call, the company outlined significant strategic changes aimed at enhancing profitability and long-term growth. The transition to a commission-based revenue model through their wholly-owned managing general agency, Conifer Insurance Services, resulted in a 58% decrease in overall gross written premium, which was split between 36% commercial lines and 64% personal lines. This shift is designed to stabilize revenue streams and reduce risk by leveraging third-party insurers with A.M. Best ratings of A- or better. The commercial lines combined ratio stood at 105%, with an accident year combined ratio of 81%, while the overall combined ratio was impacted by spring storms, particularly in Oklahoma, resulting in a 124% combined ratio for the quarter. Despite a net loss of $4 million, the company improved its expense ratio to 32%, down 580 basis points from the previous year, and increased net investment income by 11% to $1.5 million. The management emphasized their commitment to operational profitability, supported by ongoing expense reductions and potential asset sales for liquidity needs.Conifer Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Conifer Holdings Secures Leadership with Extended Contracts
Positive
Dec 19, 2024
Conifer Holdings, Inc. has entered into amended and restated employment agreements with its President and CEO, Brian Roney, and CFO, Harold Meloche, extending their terms through June 2027. The agreements include structured cash bonuses and revised severance benefits, indicating a strategic move to secure key leadership and potentially stabilize company operations amidst market changes.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.