Palomar Holdings (PLMR)
NASDAQ:PLMR
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Palomar Holdings
(NASDAQ:PLMR)
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Rating:71Outperform
Price Target:
$120.00
▼(-9.47% Downside)
Action:Reiterated
Date:05/14/26
PLMR scores well on fundamentals and the latest earnings call (strong growth, profitability, and raised guidance), which outweigh a weak technical backdrop (below key moving averages with negative MACD). Valuation is reasonable at ~18.5x earnings, while increased TTM leverage and some margin/FCF softening temper the overall score.
Positive Factors
Scaleable Top‑Line Growth
Sustained, broad-based premium growth (strong GWP and net earned premium expansion) increases underwriting scale and diversification. Larger scale improves fixed-cost absorption, distribution leverage with agents, and enhances risk pooling — durable drivers of underwriting margins and capital efficiency.
Negative Factors
Rising Financial Leverage
A material step-up in long-term debt increases financial leverage and interest obligations, reducing flexibility. Higher leverage raises sensitivity to underwriting stress and market shocks, potentially constraining capital actions and increasing the cost of absorbing larger-than-expected catastrophe or attritional loss periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Scaleable Top‑Line Growth
Sustained, broad-based premium growth (strong GWP and net earned premium expansion) increases underwriting scale and diversification. Larger scale improves fixed-cost absorption, distribution leverage with agents, and enhances risk pooling — durable drivers of underwriting margins and capital efficiency.
Read all positive factors
Palomar Holdings (PLMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.07B
Dividend YieldN/A
Average Volume (3M)269.31K
Price to Earnings (P/E)18.5
Beta (1Y)0.37
Revenue Growth60.95%
EPS Growth43.94%
CountryUS
Employees253
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)7.41
Shares Outstanding26,503,872
10 Day Avg. Volume321,925
30 Day Avg. Volume269,306
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)3.81
Price to Sales (P/S)4.10
P/FCF Ratio8.93
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue3.36
Enterprise Value/Gross Profit5.54
Enterprise Value/Ebitda12.32
Forecast
1Y Price Target
$155.20Price Target Upside17.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)9.68
Revenue Forecast (FY)$2.58B
Palomar Holdings Business Overview & Revenue Model
Company Description
Palomar Holdings, Inc., an insurance holding company, provides specialty property insurance to residential and commercial customers. The company offers personal and commercial specialty property insurance products, including residential and commer...
How the Company Makes Money
Palomar makes money primarily through its insurance underwriting operations and investment income. (1) Earned premiums: The company sells policies in specialty property and casualty lines (including earthquake insurance and other niche products). ...
Palomar Holdings Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: substantial top-line growth (GWP +42%), strong segment-level performance (notably crop +82% and surety +131%), rising adjusted net income (+23%), improving investment income (+49%) and constructive capital actions (share repurchases and $200M authorization). Management also strengthened reinsurance and issued a $410M catastrophe bond. Offsetting these positives were higher loss and combined ratios driven by attritional growth, expense pressure from mix and integration, competitive rate pressure in commercial property and commercial earthquake (~18% decrease on renewals), and weather-related crop risks. Overall, the positives — broad-based premium growth, margin-retaining profitability, improved guidance, balance sheet strength, and successful integration of acquisitions — outweigh the challenges, which are being managed with underwriting discipline and conservative reserving.Positive Updates
Strong Top-Line Growth
Gross written premium increased 42% year-over-year to $629.8 million, driven by broad-based growth across all five product categories (including earthquake). Net earned premiums grew 59% YoY to $261.4 million.
Negative Updates
Higher Combined and Loss Ratios
Adjusted combined ratio increased to 76% in Q1 from 68.5% a year ago and from 73.4% sequentially; total loss ratio rose to 33.3% from 23.6% YoY, driven primarily by higher attritional losses associated with growth in casualty and crop.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Gross written premium increased 42% year-over-year to $629.8 million, driven by broad-based growth across all five product categories (including earthquake). Net earned premiums grew 59% YoY to $261.4 million.
Read all positive updates
Company Guidance
Management raised 2026 adjusted net income guidance to $262M–$278M (midpoint implying ~25% YoY growth), which includes $8M–$12M of catastrophe losses (plus customary mini-cats) and is consistent with a risk‑adjusted reinsurance pricing decline of ~15%; the midpoint also implies ROE north of 20% and contributes to an earnings CAGR >30% since 2023 through the midpoint. For the year they expect an adjusted combined ratio in the mid‑70s, a loss ratio (including catastrophes) in the mid‑to‑upper‑30s, the net earned premium ratio to increase into the upper‑40s with Q3 as the low point, and slight improvements in acquisition and other underwriting expense ratios (2025 baselines: acquisition ~12.1%, other underwriting ~8%). Q1 results supporting the guide were adjusted net income $63.1M ($2.31/share, +23% YoY), Q1 adjusted combined ratio 76%, annualized adjusted ROE 26.6%, GWP up 42% to $629.8M, net earned premiums $261.4M (+59% YoY), and balance sheet/investment metrics of $959M shareholders’ equity, ~$1.6B cash & invested assets, weighted‑avg duration ~4 years and a Q1 yield ~4.9% (new investments >5%).Palomar Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 977.99M | 875.97M | 553.86M | 375.93M | 327.09M | 247.79M |
| Gross Profit | 593.13M | 647.37M | 269.45M | 195.59M | 137.64M | 110.90M |
| EBITDA | 266.88M | 262.65M | 157.44M | 111.92M | 72.54M | 60.72M |
| Net Income | 197.09M | 197.07M | 117.57M | 79.20M | 52.17M | 45.85M |
Balance Sheet | ||||||
| Total Assets | 3.61B | 2.23B | 2.26B | 1.71B | 1.31B | 925.73M |
| Cash, Cash Equivalents and Short-Term Investments | 1.47B | 725.15M | 550.86M | 695.35M | 583.17M | 482.97M |
| Total Debt | 297.43M | 7.09M | 0.00 | 52.60M | 36.40M | 3.47M |
| Total Liabilities | 2.65B | 1.28B | 1.53B | 1.24B | 921.70M | 531.57M |
| Stockholders Equity | 959.04M | 942.67M | 729.03M | 471.25M | 384.75M | 394.17M |
Cash Flow | ||||||
| Free Cash Flow | 365.36M | 401.99M | 260.91M | 109.35M | 163.65M | 82.96M |
| Operating Cash Flow | 368.96M | 409.12M | 261.16M | 116.11M | 169.58M | 87.81M |
| Investing Cash Flow | -675.42M | -353.98M | -306.24M | -128.48M | -156.81M | -58.19M |
| Financing Cash Flow | 243.69M | -28.79M | 73.77M | -3.94M | 5.02M | -13.04M |
Palomar Holdings Technical Analysis
Negative
132.55
Price Trends
120.71
Negative
123.82
Negative
122.38
Negative
Market Momentum
-2.88
Negative
45.70
Neutral
67.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLMR, the sentiment is Negative. The current price of 132.55 is above the 20-day moving average (MA) of 115.77, above the 50-day MA of 120.71, and above the 200-day MA of 122.38, indicating a bearish trend. The MACD of -2.88 indicates Negative momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 67.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLMR.
Palomar Holdings Risk Analysis
Palomar Holdings disclosed 53 risk factors in its most recent earnings report. Palomar 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
Palomar Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.02B | 6.00 | 32.64% | 0.82% | 22.11% | 90.84% | |
76 Outperform | $894.82M | 4.80 | 14.75% | ― | 22.83% | 2.00% | |
71 Outperform | $3.07B | 18.48 | 21.74% | ― | 60.95% | 43.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
55 Neutral | $1.74B | -264.26 | 1.52% | 3.15% | 0.51% | -88.36% | |
52 Neutral | $4.41B | -33.40 | -26.52% | ― | 57.13% | 38.73% |
* Financial Sector Average
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Palomar Holdings Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Palomar Holdings Reports Strong Q1 Growth and Buyback Plan
Positive
May 6, 2026
Palomar Holdings, Inc., a specialty insurer focused on residential and commercial earthquake, property, casualty, surety and crop products, reported steady profitability and strong top-line growth for the quarter ended March 31, 2026. The business...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Palomar Highlights Strong Q4 Results and Gray Surety Acquisition
Positive
Feb 23, 2026
On February 23, 2026, Palomar Holdings, Inc. updated its investor presentation, highlighting fourth-quarter gross written premium of $492.6 million, up 31.8% year on year, and adjusted net income of $61.1 million, a 48% gain that translated into a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.