Ryan Specialty Group (RYAN) AI Stock Analysis

• Market Cap: $10.66B
• Dividend Yield: 0.93%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 86.7
• Beta (1Y): 0.37
• Revenue Growth: 22.77%
• EPS Growth: -34.97%
• Country: US
• Employees: 5,556
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 0.45
• Shares Outstanding: 129,680,820
• 10 Day Avg. Volume: 3,645,118
• 30 Day Avg. Volume: 2,153,075
• PEG Ratio: -2.89
• Price to Book (P/B): 10.14
• Price to Sales (P/S): 2.15
• P/FCF Ratio: 11.41
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 3.44
• Enterprise Value/Ebitda: 11.03
• 1Y Price Target: $57.00
• Price Target Upside: 38.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $46.00 ▲(11.38% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by solid operating performance and strong free cash flow, partially offset by elevated balance-sheet leverage. Technicals are weak (broadly below key moving averages with negative MACD), and valuation is a major headwind due to the very high P/E. Earnings call signals a balanced outlook: moderated 2026 growth and margin pressure near term, but supportive shareholder actions (buyback authorization and dividend increase) and longer-term efficiency initiatives.

Positive Factors

Free Cash Flow Generation

Consistently strong free cash flow (operating cash flow ~$644M; FCF ~$576M) provides durable internal funding for acquisitions, buybacks and dividends, reducing reliance on external financing. High FCF also supports capital allocation flexibility during industry cycles and funds strategic investments.

Sustained Revenue Scaling & Organic Growth

Long track record of scaling revenue with 15 years of double-digit organic growth and 7 consecutive years >20% total growth shows durable commercial capabilities, repeatable client wins and resilient sales engine that underpin long-term market share gains across specialties.

Delegated Authority & Product Diversification

Expansion of delegated authority to $1.4B and a platform managing >$10B premium across 300+ products builds structural competitive advantage: higher recurring revenue, scale in underwriting expertise, and diversification across geographies and lines that reduce exposure to any single P&C cycle.

Negative Factors

High Financial Leverage

A highly levered capital structure (rising debt-to-equity) amplifies earnings volatility and elevates refinancing and interest rate risk. High leverage reduces balance sheet flexibility for opportunistic M&A and increases sensitivity to underwriting or macro shocks over the next several quarters.

Margin Pressure & Rising Interest Costs

Near-term margin headwinds from investments, lower fiduciary income and higher healthcare costs, combined with materially higher expected interest expense, compress net profitability. Sustained margin pressure could limit reinvestment capacity and slow margin recovery despite efficiency programs.

Exposure to Property Pricing Volatility & Builders Risk

Significant property rate deterioration and lumpy builders risk results create structural earnings variability in specialty lines. Persistent softening in property pricing or prolonged construction delays would reduce revenue and underwriting returns in areas where the firm has concentrated delegated authority exposure.

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 commissions and fees earned from its brokerage services, which involve placing insurance coverage for clients with various carriers. The company also earns income from its managing general underwriting operations, where it underwrites specific insurance products and retains a portion of the premiums. Key revenue streams include transaction-based commissions from insurance placements, ongoing fees from clients for advisory services, and premiums collected from the insurance products it underwrites. Significant partnerships with various insurance carriers enhance RYAN's ability to offer a diverse range of products, while its reputation in the specialty market allows it to attract a broad client base, contributing to its overall earnings.

Ryan Specialty Group Financial Statement Overview

Summary

Strong revenue scaling and solid operating profitability supported by robust, improving free cash flow, but the balance sheet is a major constraint due to very high and rising leverage (debt-to-equity elevated), increasing financial risk despite strong ROE.

Income Statement

Revenue has scaled strongly over the period, accelerating again in 2025 (annual revenue growth ~296% vs ~21% in 2024). Operating profitability is solid and improving on an absolute basis (EBITDA $803M in 2025 vs $599M in 2024), with EBITDA margins holding in the mid‑20% range. The key weakness is bottom-line conversion: net margin remains modest (about 7.0% in 2025), and profitability has been more volatile than operating metrics, indicating below-the-line pressure despite strong gross/operating performance.

Balance Sheet

The balance sheet is highly levered, with debt-to-equity elevated and rising (about 5.68x in 2025 vs 3.85x in 2023), which reduces flexibility and increases sensitivity to earnings or rate shocks. Equity has grown, and return on equity is strong in 2025 (~33%), but that strength is amplified by high leverage rather than a conservatively capitalized profile. Overall asset growth is notable, but the capital structure remains the primary risk factor.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow increased materially in 2025 (operating cash flow ~$644M; free cash flow ~$576M), with strong free cash flow growth (~63%). Free cash flow closely tracks reported earnings (free cash flow at ~0.89x net income in 2025 and ~0.91–0.96x in prior years), suggesting solid earnings quality. A watch item is year-to-year volatility in the provided operating cash flow coverage metric (notably low in 2021–2024 before improving sharply in 2025), which points to potential variability in cash dynamics even though absolute cash flow is strong.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.05B	2.52B	2.08B	1.73B	1.43B
Gross Profit	2.76B	2.52B	2.08B	1.73B	1.43B
EBITDA	803.08M	598.63M	473.27M	393.31M	253.60M
Net Income	63.40M	94.67M	61.04M	61.05M	65.87M
Balance Sheet
Total Assets	10.56B	9.65B	7.25B	6.38B	5.46B
Cash, Cash Equivalents and Short-Term Investments	158.32M	540.20M	838.79M	992.72M	386.96M
Total Debt	3.68B	3.46B	2.16B	2.16B	1.68B
Total Liabilities	9.31B	8.55B	6.27B	5.57B	4.86B
Stockholders Equity	648.07M	627.66M	559.75M	478.40M	343.77M
Cash Flow
Free Cash Flow	575.71M	467.87M	447.43M	320.47M	263.71M
Operating Cash Flow	643.67M	514.87M	477.20M	335.51M	273.49M
Investing Cash Flow	-834.01M	-1.76B	-476.23M	-22.42M	-457.94M
Financing Cash Flow	78.12M	1.17B	-12.61M	314.76M	429.28M

Ryan Specialty Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 41.3 is below the 20-day moving average (MA) of 45.20, below the 50-day MA of 49.24, and below the 200-day MA of 57.50, indicating a bearish trend. The MACD of -2.65 indicates Positive momentum. The RSI at 35.90 is Neutral, neither overbought nor oversold. The STOCH value of 32.70 is Neutral, 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	76 Outperform	$5.92B	8.88	12.35%	1.88%	2.78%	-0.50%
FNF	74 Outperform	$15.20B	13.05	7.93%	3.69%	3.91%	55.78%
AIZ	72 Outperform	$11.00B	12.98	15.90%	1.36%	6.91%	17.60%
MTG	68 Neutral	$5.99B	8.53	―	1.89%	2.20%	9.90%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FAF	66 Neutral	$6.74B	11.03	11.95%	3.58%	25.99%	426.44%
RYAN	57 Neutral	$10.66B	86.72	9.94%	0.93%	22.77%	-34.97%

Ryan Specialty Group Corporate Events

Ryan Specialty Launches Empower Program and Share Repurchases

On February 10, 2026, Ryan Specialty’s board approved a three-year “Empower Program” restructuring, beginning in the first quarter of 2026, aimed at streamlining brokerage, binding and underwriting operations, scaling data and technology capabilities and improving efficiency across specialties. The initiative, which comprises business platform optimization and changes to compensation and benefits, is expected to be completed by the end of 2028, generate about $80 million in annual savings by 2029 and result in roughly $160 million in pre-tax charges, about 95% of which will require future cash outlays and be treated as special items in reported results.

The board also authorized a share repurchase program of up to $300 million in Class A common stock, adding buybacks to Ryan Specialty’s capital allocation tools and signaling confidence in the firm’s outlook and commitment to enhancing shareholder returns. In tandem with these actions, the company reported fourth-quarter 2025 revenue growth of 13.2% to $751.2 million and full-year 2025 revenue growth of 21.3% to $3.05 billion, supported by 10.1% organic growth and contributions from five acquisitions, even as net income declined year over year and margins compressed amid higher operating expenses.

Management highlighted that 2025 marked the firm’s seventh consecutive year of 20%-plus total revenue growth and 15th straight year of double-digit organic growth, underscoring its continued expansion and market share gains despite industry headwinds. The Empower Program and new repurchase authorization together indicate a dual focus on operational optimization and shareholder value, with implications for near-term earnings volatility due to restructuring charges but potential longer-term margin improvement and accretive capital returns.

The most recent analyst rating on (RYAN) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on Ryan Specialty Group stock, see the RYAN Stock Forecast page.

Ryan Specialty Schedules 2026 Virtual Annual Stockholder Meeting

Ryan Specialty Holdings, Inc. has scheduled its 2026 annual meeting of stockholders to be held virtually on April 28, 2026, with the record date set as the close of business on March 2, 2026, determining which shareholders are entitled to receive notice and vote. The company also detailed procedural timelines that govern shareholder participation in the meeting.

The board established February 22, 2026 as the deadline for stockholder proposals to be included in the proxy materials under SEC Rule 14a-8, aligning with the expected start of proxy printing and distribution. Separately, under its bylaws, the company set February 20, 2026 as the cutoff for advance notice of director nominations and other proposals, clarifying governance processes for investors and reinforcing regulatory compliance around shareholder rights.

The most recent analyst rating on (RYAN) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on Ryan Specialty Group stock, see the RYAN Stock Forecast page.

Ryan Specialty Group Board Member Retirement Announced

Ryan Specialty Holdings, Inc. announced that Robert Le Blanc will retire from the Board of Directors effective February 11, 2026, following Onex Corporation’s sale of its remaining shares in the company. Le Blanc, who has been part of the Board since 2018 as Onex’s nominee, contributed significantly to the company’s growth and market leadership in specialty insurance solutions. His retirement marks the end of a significant chapter in Ryan Specialty’s history, reflecting the company’s evolution and Onex’s profitable investment.

The most recent analyst rating on (RYAN) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Ryan Specialty Group stock, see the RYAN Stock Forecast page.