Ryan Specialty Group (RYAN) AI Stock Analysis

• Market Cap: $13.63B
• Dividend Yield: 0.91%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 2216.5
• Beta (1Y): 0.27
• Revenue Growth: 22.21%
• EPS Growth: -30.67%
• Country: US
• Employees: 5,556
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 0.66
• Shares Outstanding: 128,039,920
• 10 Day Avg. Volume: 1,311,913
• 30 Day Avg. Volume: 1,444,108
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 8.07
• Enterprise Value/Gross Profit: 11.29
• Enterprise Value/Ebitda: 30.95
• 1Y Price Target: $70.91
• Price Target Upside: 37.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 68 Neutral
• Price Target: $59.00 ▲(14.14% Upside)

Ryan Specialty Group's strong financial performance and strategic growth initiatives are offset by technical weaknesses and high valuation concerns. The stock's bearish technical indicators and extremely high P/E ratio suggest caution. However, the company's robust revenue growth and strategic partnerships provide a solid foundation for future growth.

Positive Factors

Revenue Growth

Strong revenue growth driven by both organic expansion and strategic acquisitions indicates robust market demand and effective business strategy.

Strategic Partnerships

Strengthening strategic partnerships enhances market reach and product offerings, positioning the company for sustained growth and competitive advantage.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and potential for reinvestment, underpinning long-term financial health and growth potential.

Negative Factors

Decline in Property Pricing

Continued decline in property pricing can negatively impact revenue and organic growth, posing a challenge to maintaining current growth rates.

High Leverage

High leverage may limit financial flexibility and increase risk, especially in volatile market conditions, potentially affecting long-term stability.

Challenges in Construction Sector

Challenges in the construction sector due to macroeconomic factors could lead to prolonged binding periods and impact revenue growth negatively.

Ryan Specialty Group Business Overview & Revenue Model

Company Description

Ryan Specialty Group Holdings, Inc. operates as a service provider of specialty products and solutions for insurance brokers, agents, and carriers. It offers distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter. The company was founded in 2010 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Ryan Specialty Group generates revenue primarily through brokerage fees and commissions from the placement of insurance policies for clients. The company earns a significant portion of its income by acting as an intermediary between insurance carriers and clients, facilitating the underwriting process and providing access to specialty insurance products. Additionally, RYAN's managing general underwriting segment contributes to its revenue by generating profits from underwriting activities, including risk assessment and policy issuance. Strategic partnerships with various insurance carriers enhance RYAN's product offerings and market reach, further solidifying its revenue streams. The company's expertise in niche markets allows it to command competitive fees and maintain strong relationships with clients, thereby driving consistent earnings growth.

Ryan Specialty Group Financial Statement Overview

Summary

Ryan Specialty Group exhibits strong revenue growth and operational efficiency, evidenced by stable EBIT and EBITDA margins. While profitability is improving, enhancing net margins and reducing leverage could fortify financial health. The company's solid cash flow generation supports ongoing operations and potential investments, though improving the equity ratio would enhance balance sheet resilience.

Income Statement

Ryan Specialty Group demonstrates robust revenue growth, with a notable increase from $2.52 billion in 2024 to $2.81 billion in TTM. The gross profit margin is strong at 54.2%, and the net profit margin improved to 4.6% in TTM. The EBIT margin remains stable at 15.4%, indicating consistent operational efficiency. However, while the EBITDA margin is healthy at 23.3%, there's room for improvement in net margins to enhance profitability further.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 5.99, indicating high leverage compared to equity. The return on equity has improved to 21.0% in TTM, showcasing effective utilization of equity for generating profits. However, the equity ratio remains low at 5.7%, suggesting a reliance on liabilities for asset financing. Strengthening equity could improve financial stability.

Cash Flow

Operating cash flow to net income ratio is robust at 4.45, demonstrating strong cash generation relative to net income. Free cash flow increased to $510 million, indicating a healthy cash position. However, the free cash flow to net income ratio is 3.97, which suggests potential to enhance cash earnings efficiency. Continued positive cash flow trends support operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.81B	2.52B	2.08B	1.73B	1.43B	1.02B
Gross Profit	2.01B	924.63M	756.52M	596.21M	441.15M	360.06M
EBITDA	733.18M	598.63M	497.60M	418.32M	186.62M	235.58M
Net Income	55.68M	94.67M	61.04M	163.26M	65.87M	68.10M
Balance Sheet
Total Assets	10.63B	9.65B	7.25B	6.38B	5.46B	4.53B
Cash, Cash Equivalents and Short-Term Investments	172.59M	540.20M	838.79M	992.72M	386.96M	312.65M
Total Debt	3.65B	3.46B	2.16B	2.16B	1.68B	1.69B
Total Liabilities	9.44B	8.55B	6.27B	5.57B	4.86B	4.46B
Stockholders Equity	610.09M	627.66M	559.75M	478.40M	343.77M	69.79M
Cash Flow
Free Cash Flow	510.40M	467.87M	447.43M	320.47M	263.71M	122.89M
Operating Cash Flow	571.34M	514.87M	477.20M	335.51M	273.49M	135.39M
Investing Cash Flow	-2.14B	-1.76B	-476.23M	-22.42M	-457.94M	-865.42M
Financing Cash Flow	1.33B	1.17B	-12.61M	314.76M	429.28M	989.24M

Ryan Specialty Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYAN, the sentiment is Negative. The current price of 51.69 is below the 20-day moving average (MA) of 56.55, below the 50-day MA of 60.37, and below the 200-day MA of 66.31, indicating a bearish trend. The MACD of -2.34 indicates Positive momentum. The RSI at 23.94 is Positive, neither overbought nor oversold. The STOCH value of 11.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RYAN.

Ryan Specialty Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESNT	81 Outperform	$6.24B	9.24	12.94%	1.91%	4.79%	-0.76%
MTG	77 Outperform	$6.54B	9.30	14.85%	1.87%	3.26%	12.70%
AIZ	77 Outperform	$10.57B	15.16	13.65%	1.50%	6.42%	-7.74%
FNF	74 Outperform	$16.16B	15.07	14.20%	3.33%	7.25%	17.55%
RYAN	68 Neutral	$13.63B	2,216.52	9.44%	0.91%	22.21%	-30.67%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%
FAF	65 Neutral	$6.93B	36.57	3.80%	3.18%	14.28%	-2.87%

Ryan Specialty Group Corporate Events

Ryan Specialty Group Appoints Michael Bungert to Board

On September 3, 2025, Ryan Specialty Holdings, Inc. appointed Michael G. Bungert, a veteran in the (re)insurance industry, to its Board of Directors and its Compensation and Governance Committee. Mr. Bungert, who has extensive experience in the insurance sector, is expected to bring strategic insights to the company. His appointment is seen as a move to strengthen Ryan Specialty’s position as a leader in the specialty insurance market, with Mr. Bungert’s experience anticipated to contribute to the firm’s innovative solutions and forward momentum.

Ryan Specialty Group Reports Strong Q2 2025 Performance

Ryan Specialty Holdings, Inc. reported a strong financial performance for the second quarter of 2025, with total revenue increasing by 23.0% year-over-year to $855.2 million. The company achieved a net income of $124.7 million and an adjusted EBITDAC growth of 24.5%, reflecting its resilience in a challenging property rate environment. The firm also completed three acquisitions, bolstering its market position and demonstrating its commitment to long-term growth and value creation for shareholders.

Ryan Specialty Group Announces Leadership Changes

On July 16, 2025, Ryan Specialty Holdings, Inc. announced the passing of D. Cameron Findlay, a long-serving director and Chairperson of the Compensation and Governance Committee. Mr. Findlay, who had been with the company since 2012, was remembered for his extensive experience and contributions to the firm. In response to his passing, John W. Rogers, Jr. was appointed as Lead Director and Henry S. Bienen as Chairperson of the Compensation and Governance Committee. The announcement reflects the company’s efforts to address leadership changes while honoring Mr. Findlay’s legacy.