Palomar Holdings (PLMR) AI Stock Analysis

• Market Cap: $3.40B
• Dividend Yield: N/A
• Average Volume (3M): 197.82K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.31
• Revenue Growth: 54.41%
• EPS Growth: 52.71%
• Country: US
• Employees: 253
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 2.01
• Shares Outstanding: 26,501,692
• 10 Day Avg. Volume: 194,142
• 30 Day Avg. Volume: 197,820
• PEG Ratio: 0.51
• Price to Book (P/B): 3.70
• Price to Sales (P/S): 4.87
• P/FCF Ratio: 10.33
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 4.13
• Enterprise Value/Gross Profit: 8.30
• Enterprise Value/Ebitda: 14.13
• 1Y Price Target: $161.25
• Price Target Upside: 25.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 8.6
• Revenue Forecast (FY): $2.43B

• Rating: 83 Outperform
• Price Target: $158.00 ▲(23.00% Upside)

Overall score is driven primarily by strong financial quality (profitable growth and a zero-debt balance sheet) and a very positive earnings update with raised guidance and strong underwriting results. Technicals add support via a clear uptrend and positive momentum, while valuation is more neutral due to a moderate P/E and no provided dividend yield.

Positive Factors

Revenue Growth

Strong growth in gross written premiums indicates effective market penetration and product demand, supporting long-term revenue expansion.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling reinvestment in growth initiatives and strategic acquisitions.

Strategic Acquisitions

Acquisitions like First Indemnity of America provide new growth vectors, diversifying revenue streams and strengthening market position.

Negative Factors

Impact of Wildfires

Wildfires pose ongoing risks to the insurance market, potentially disrupting operations and increasing claims, affecting profitability.

Fronting Business Decline

A significant decline in the fronting business could indicate challenges in maintaining partnerships, impacting revenue stability.

Reinsurance Cost Pressure

High reinsurance costs could strain margins and impact profitability, especially amid market uncertainties like wildfires.

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 commercial earthquake, commercial all risk, specialty homeowners, inland marine, Hawaii hurricane, and residential flood, as well as other products, such as assumed reinsurance, commercial flood, real estate error and omission, and real estate investor products. It markets and distributes its products through retail agents, wholesale brokers, program administrators, and carrier partnerships. The company was formerly known as GC Palomar Holdings. Palomar Holdings, Inc. was incorporated in 2013 and is headquartered in La Jolla, California.

How the Company Makes Money

Palomar Holdings generates revenue primarily through the underwriting of specialty insurance policies. The company collects premiums from policyholders in exchange for providing coverage against specific risks, such as earthquakes and hurricanes. Palomar employs a focused underwriting strategy to assess and price risk accurately, allowing it to maintain profitability while offering competitive rates. Additionally, the company leverages reinsurance agreements to manage its exposure to large-scale catastrophic events, which helps stabilize its financial performance. Key revenue streams include premium income from policyholders and investment income from the company's portfolio of invested assets. Significant partnerships with reinsurers and distribution partners also contribute to Palomar's ability to expand its market reach and enhance its product offerings.

Palomar Holdings Financial Statement Overview

Summary

Palomar Holdings showcases strong financial health with substantial revenue and net income growth, a solid balance sheet, and robust cash flow generation. However, the absence of EBIT and EBITDA figures in 2024 and fluctuating total assets warrant caution. The company's strong equity position and consistent cash flow performance provide a solid foundation for future growth.

Income Statement

Palomar Holdings has demonstrated strong revenue growth, with an impressive increase from $113.3M in 2019 to $553.9M in 2024. The gross profit margin is robust, consistently at 100% due to the nature of the insurance industry. Net profit margins have improved, reaching 21.2% in 2024 from 9.4% in 2019. However, the absence of EBIT and EBITDA in 2024 raises concerns about operational efficiency, affecting the overall score.

Balance Sheet

The company maintains a healthy balance sheet with zero debt in 2024, resulting in a favorable debt-to-equity ratio. Stockholders' equity has significantly increased, enhancing the equity ratio to 87.8% in 2024. However, fluctuations in total assets and a decrease in total liabilities indicate potential volatility. The strong equity position supports financial stability.

Cash Flow

Palomar Holdings exhibits strong cash flow performance with free cash flow increasing substantially to $260.9M in 2024 from $38.8M in 2019. Operating cash flow to net income ratio remains robust, indicating efficient cash conversion. However, the significant increase in investing cash outflows might pose a risk to future liquidity if not managed properly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	775.96M	553.86M	375.93M	327.09M	247.79M	168.46M
Gross Profit	386.11M	269.45M	195.59M	137.64M	110.90M	40.31M
EBITDA	226.79M	157.44M	111.92M	72.54M	60.72M	7.56M
Net Income	175.87M	117.57M	79.20M	52.17M	45.85M	6.26M
Balance Sheet
Total Assets	2.94B	2.26B	1.71B	1.31B	925.73M	729.09M
Cash, Cash Equivalents and Short-Term Investments	1.25B	550.86M	695.35M	583.17M	482.97M	431.52M
Total Debt	0.00	0.00	52.60M	36.40M	0.00	0.00
Total Liabilities	2.07B	1.53B	1.24B	921.70M	531.57M	365.38M
Stockholders Equity	878.11M	729.03M	471.25M	384.75M	394.17M	363.71M
Cash Flow
Free Cash Flow	358.31M	260.91M	109.35M	163.65M	82.96M	49.48M
Operating Cash Flow	364.34M	261.16M	116.11M	169.58M	87.81M	53.55M
Investing Cash Flow	-311.80M	-306.24M	-128.48M	-156.81M	-58.19M	-181.44M
Financing Cash Flow	-27.37M	73.77M	-3.94M	5.02M	-13.04M	128.33M

Palomar Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 128.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 128.46 is below the 20-day moving average (MA) of 132.62, above the 50-day MA of 127.49, and below the 200-day MA of 134.11, indicating a neutral trend. The MACD of 0.66 indicates Positive momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 30.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLMR.

Palomar Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLMR	83 Outperform	$3.40B	20.04	22.24%	―	54.41%	52.71%
HCI	78 Outperform	$2.28B	11.23	31.94%	0.82%	8.71%	17.26%
AHL	73 Outperform	$3.42B	―	13.97%	―	―	―
ROOT	70 Neutral	$1.09B	22.50	17.02%	―	38.50%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LMND	57 Neutral	$5.93B	-33.42	-31.34%	―	30.53%	21.82%
KMPR	52 Neutral	$2.25B	10.05	9.03%	3.15%	4.51%	-8.29%

Palomar Holdings Corporate Events

Palomar Holdings to Acquire Gray Casualty & Surety

On October 27, 2025, Palomar Insurance Holdings, a subsidiary of Palomar Holdings, Inc., announced an agreement to acquire The Gray Casualty & Surety Company for $300 million. This acquisition, expected to close in the first half of 2026, aims to enhance Palomar’s presence in the surety market by leveraging Gray Surety’s national footprint and experienced management team. The transaction is subject to regulatory approvals and customary closing conditions, and it signifies Palomar’s strategic intent to bolster its market position and drive profitable growth.

The most recent analyst rating on (PLMR) stock is a Buy with a $137.00 price target. To see the full list of analyst forecasts on Palomar Holdings stock, see the PLMR Stock Forecast page.