Neptune Insurance Holdings, Inc. Class A (NP) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: N/A
• Average Volume (3M): 240.10K
• Price to Earnings (P/E): 90.4
• Beta (1Y): 1.09
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 60
• Sector: Financial
• Sector Strength: 70
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 94,600,000
• 10 Day Avg. Volume: 207,764
• 30 Day Avg. Volume: 240,096
• PEG Ratio: 0.13
• Price to Book (P/B): -0.63
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 5.01
• Enterprise Value/Market Cap: 0.10
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.67
• Price Target Upside: 14.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $25.00 ▼(-0.48% Downside)

Neptune Insurance Holdings, Inc. has a moderate overall stock score driven by strong financial performance in terms of revenue growth and profitability. However, significant financial risks due to negative equity and high leverage, combined with neutral technical indicators and lack of valuation data, limit the stock's attractiveness. The recent IPO is a positive corporate event but does not significantly impact the overall score.

Positive Factors

Revenue Growth

Neptune Insurance's 31% revenue growth in Q3 indicates robust market demand and effective business strategies, supporting long-term expansion.

Business Model Efficiency

The MGA model allows Neptune to operate efficiently with low asset risk, enhancing profitability and scalability in the insurance market.

Cash Flow Management

Strong cash flow management indicates effective operations and financial health, providing resources for growth and stability.

Negative Factors

Negative Equity

Negative equity suggests financial instability and potential challenges in meeting obligations, impacting long-term viability.

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially affecting future growth and sustainability.

Debt-to-Equity Ratio

A negative debt-to-equity ratio highlights financial risk, limiting the company's ability to secure favorable financing terms.

Neptune Insurance Holdings, Inc. Class A Business Overview & Revenue Model

Company Description

A data-driven managing general agent for flood insurance. Sells residential and commercial flood insurance (primary & excess), and parametric earthquake insurance. Uses AI and machine learning platforms (e.g. underwriting engine "Triton", policy management "Poseidon"), distributes via agency network, and does not take balance sheet risk or handle claims themselves; rather, insurance and reinsurance carriers do.

How the Company Makes Money

Neptune Insurance Holdings generates revenue primarily through the collection of premiums from its policyholders. The company underwrites various insurance policies, which provide the foundational income stream, while also earning investment income from the reserves it maintains to cover future claims. Key revenue streams include personal auto insurance, homeowners insurance, and commercial insurance products. Additionally, Neptune Insurance may engage in reinsurance arrangements and strategic partnerships with other financial institutions that can help mitigate risk and expand its market reach, further contributing to its earnings.

Neptune Insurance Holdings, Inc. Class A Financial Statement Overview

Summary

Neptune Insurance Holdings, Inc. shows strong revenue growth and profitability, supported by efficient cash flow management. However, the negative equity and high leverage present significant financial risks, which need to be addressed for long-term sustainability.

Income Statement

Neptune Insurance Holdings, Inc. shows strong revenue growth of 40.57% year-over-year, indicating robust expansion. The company maintains healthy profitability with a gross profit margin of 66.41% and a net profit margin of 28.99% in the latest period. EBIT and EBITDA margins are also strong at 53.56% and 56.10% respectively, reflecting efficient operations. However, the high margins are somewhat offset by the negative equity position, which could pose risks to sustainability.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, resulting in a negative debt-to-equity ratio. This indicates potential financial instability and high leverage risk. The return on equity is also negative, reflecting challenges in generating returns for shareholders. Despite these issues, the company has managed to increase its total assets, which could be a positive sign if leveraged effectively.

Cash Flow

Neptune Insurance Holdings, Inc. demonstrates strong cash flow management with a significant increase in free cash flow by 216.16% year-over-year. The operating cash flow to net income ratio is above 1, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also high at 92.56%, suggesting effective conversion of earnings into cash. However, the high leverage and negative equity could impact future cash flow stability.

Breakdown	Dec 2024	Dec 2023
Income Statement
Total Revenue	119.30M	84.87M
Gross Profit	79.23M	54.51M
EBITDA	66.93M	47.37M
Net Income	34.59M	17.89M
Balance Sheet
Total Assets	48.15M	41.67M
Cash, Cash Equivalents and Short-Term Investments	7.09M	8.13M
Total Debt	133.65M	174.86M
Total Liabilities	414.14M	429.27M
Stockholders Equity	-365.99M	-387.60M
Cash Flow
Free Cash Flow	46.21M	14.62M
Operating Cash Flow	49.93M	18.65M
Investing Cash Flow	-3.71M	-4.03M
Financing Cash Flow	-42.47M	-9.87M

Neptune Insurance Holdings, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DSP	65 Neutral	$794.78M	479.55	4.45%	―	22.97%	49.49%
NP	56 Neutral	$3.47B	90.42	―	―	―	―
GRND	53 Neutral	$2.17B	-31.36	-171.54%	―	28.97%	-4.18%