Skyward Specialty Insurance Group, Inc. (SKWD) AI Stock Analysis

• Market Cap: $1.99B
• Dividend Yield: N/A
• Average Volume (3M): 440.11K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.42
• Revenue Growth: 22.20%
• EPS Growth: 5.78%
• Country: US
• Employees: 580
• Sector: Financial
• Sector Strength: 71
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.89
• Shares Outstanding: 40,486,656
• 10 Day Avg. Volume: 519,707
• 30 Day Avg. Volume: 440,105
• PEG Ratio: 0.64
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 6.73
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 4.76
• Enterprise Value/Ebitda: 15.02
• 1Y Price Target: $59.14
• Price Target Upside: 20.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: $55.00 ▲(11.65% Upside)

Skyward Specialty Insurance Group, Inc. exhibits strong financial performance and a positive earnings call outlook, contributing to a robust overall score. However, weak technical indicators and challenges in investment income slightly offset these strengths. The stock's reasonable valuation supports its position in the market.

Positive Factors

Earnings

Skyward produced operating EPS of $0.89, beating the Street’s estimate of $0.84, showcasing strong financial performance.

Growth Potential

Skyward is a fast-growing, technology-enabled specialty insurer focusing on niche markets with complex risks, positioning it for future success.

Technology Utilization

By leveraging technology across all aspects of its business, Skyward enhances risk selection and claim management, boosting efficiency and returns.

Negative Factors

Growth Challenges

Despite better-than-expected 2025 guidance, there is limited room for incremental upside due to decelerating top-line growth.

Risk-Reward Outlook

The risk-reward outlook is largely in balance, leading to a downgrade from Outperform to Peer Perform.

Valuation Concerns

Valuation appears full given growth outlook, making it difficult to support further multiple expansion.

Skyward Specialty Insurance Group, Inc. Business Overview & Revenue Model

Company Description

Skyward Specialty Insurance Group, Inc. (SKWD) is a specialty insurance company that provides a range of property and casualty insurance products. The company focuses on offering customized insurance solutions in niche markets, catering to sectors such as construction, energy, healthcare, professional services, and transportation. With a commitment to innovation and client-centric service, Skyward Specialty aims to deliver tailored risk management solutions to meet the unique needs of its diverse clientele.

How the Company Makes Money

Skyward Specialty Insurance Group, Inc. generates revenue primarily through the underwriting and sale of insurance policies. The company's key revenue streams include premiums collected from policyholders in exchange for coverage against specified risks. Additionally, Skyward Specialty earns income from investment activities, where it invests the premiums collected into various financial instruments to generate returns. The company may also engage in reinsurance agreements to manage risk exposure and optimize capital efficiency. Significant partnerships with brokers and agents, who distribute Skyward's specialized insurance products, contribute to the company's market reach and revenue generation.

Skyward Specialty Insurance Group, Inc. Financial Statement Overview

Summary

Skyward Specialty Insurance Group, Inc. demonstrates strong financial health with significant revenue and profit growth, efficient equity utilization, and robust cash flow generation. While operational efficiency has shown some volatility, the company's conservative leverage and strong cash position provide a cushion against potential risks.

Income Statement

Skyward Specialty Insurance Group, Inc. has demonstrated strong revenue growth, with a TTM (Trailing-Twelve-Months) revenue increase of 28.5% compared to the previous year. The gross profit margin remains robust at 100% due to the nature of the insurance industry. Net profit margin improved to 10.3%, showcasing enhanced profitability. However, the lack of EBIT in the previous year indicates potential volatility in operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.15, indicating conservative leverage. The return on equity has improved to 14.96%, reflecting efficient use of shareholders' equity. However, the equity ratio stands at 21.29%, suggesting a moderate reliance on liabilities to finance assets.

Cash Flow

Skyward shows a solid cash flow position with a high free cash flow to net income ratio of 2.53, indicating strong cash generation relative to accounting profits. However, the operating cash flow to net income ratio of 2.57 suggests the need for careful management of operating activities to sustain cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21B	1.15B	895.40M	636.40M	535.82M	447.89M
Gross Profit	533.61M	327.89M	895.40M	636.40M	535.82M	447.89M
EBITDA	169.11M	165.59M	124.02M	60.29M	58.05M	-84.01M
Net Income	124.10M	118.83M	85.98M	39.40M	38.32M	-74.64M
Balance Sheet
Total Assets	4.03B	3.73B	2.95B	2.36B	2.12B	1.95B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.18B	863.92M	774.17M	664.74M	299.41M
Total Debt	119.55M	119.54M	128.69M	128.61M	128.53M	128.45M
Total Liabilities	3.18B	2.94B	1.51B	1.94B	1.69B	1.65B
Stockholders Equity	850.72M	794.00M	661.03M	421.66M	426.08M	393.52M
Cash Flow
Free Cash Flow	303.44M	300.89M	335.03M	206.61M	173.13M	42.64M
Operating Cash Flow	307.61M	305.12M	338.19M	208.94M	175.28M	44.71M
Investing Cash Flow	-274.61M	-243.69M	-493.81M	-193.38M	-183.01M	-74.93M
Financing Cash Flow	5.23M	-4.23M	130.95M	2.18M	1.38M	56.30M

Skyward Specialty Insurance Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKWD, the sentiment is Negative. The current price of 49.26 is below the 20-day moving average (MA) of 50.90, below the 50-day MA of 55.10, and below the 200-day MA of 52.16, indicating a bearish trend. The MACD of -1.78 indicates Negative momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 28.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKWD.

Skyward Specialty Insurance Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKWD	73 Outperform	$1.99B	15.55	16.20%	―	22.20%	5.78%
HCI	72 Outperform	$2.00B	13.68	23.90%	1.02%	9.62%	-18.69%
BOW	70 Outperform	$1.03B	21.42	13.23%	―	41.00%	61.54%
ROOT	68 Neutral	$1.25B	18.94	27.52%	―	59.76%	―
Sector *	68 Neutral	$17.46B	11.65	10.44%	3.86%	10.36%	1.15%
SAFT	64 Neutral	$1.09B	12.84	10.08%	4.91%	18.52%	65.66%
LMND	59 Neutral	$4.03B	―	-35.10%	―	22.91%	4.95%

Skyward Specialty Insurance Group, Inc. Corporate Events

Skyward Specialty Elects Directors and Approves Compensation

On May 7, 2025, Skyward Specialty Insurance Group, Inc. held its Annual Meeting of Shareholders. During the meeting, Marcia Dall and Anthony J. Kuczinski were elected as directors, and the compensation of named executive officers was approved. The company decided to hold annual advisory votes on executive compensation until 2031. Additionally, Ernst & Young LLP was ratified as the independent auditors for the fiscal year ending December 31, 2025.

The most recent analyst rating on (SKWD) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Skyward Specialty Insurance Group, Inc. stock, see the SKWD Stock Forecast page.