Skyward Specialty Insurance Group, Inc. (SKWD)
NASDAQ:SKWD
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Skyward Specialty Insurance Group, Inc.
(NASDAQ:SKWD)
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Rating:76Outperform
Price Target:
$57.00
▲(21.72% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by strong financial performance (growth, profitability, and cash generation) and a constructive earnings update with reaffirmed guidance and solid underwriting results. These positives are tempered by weaker technical momentum (trading below major moving averages) and a key financial watch item of higher recent leverage and margin variability.
Positive Factors
Sustained Premium and Revenue Growth
Skyward's multi-year premium and revenue scale reflects durable market traction across specialty programs and distribution channels. Growing managed and fee-generating premiums expand recurring income streams and diversification, supporting long-term top-line resilience and capacity to absorb underwriting variability.
Negative Factors
Recent Leverage Step-Up
A sharp TTM increase in debt materially reduces balance-sheet flexibility versus prior conservative leverage. Higher leverage raises interest and refinancing risk, narrows tactical options for capital allocation, and could constrain capacity to respond to large loss events or opportunistic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Premium and Revenue Growth
Skyward's multi-year premium and revenue scale reflects durable market traction across specialty programs and distribution channels. Growing managed and fee-generating premiums expand recurring income streams and diversification, supporting long-term top-line resilience and capacity to absorb underwriting variability.
Read all positive factors
Skyward Specialty Insurance Group, Inc. (SKWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.05B
Dividend YieldN/A
Average Volume (3M)398.57K
Price to Earnings (P/E)11.5
Beta (1Y)0.54
Revenue Growth28.95%
EPS Growth37.60%
CountryUS
Employees580
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.28
Shares Outstanding40,543,064
10 Day Avg. Volume358,047
30 Day Avg. Volume398,575
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)2.05
Price to Sales (P/S)1.46
P/FCF Ratio5.13
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue1.53
Enterprise Value/Gross Profit4.95
Enterprise Value/Ebitda9.07
Forecast
1Y Price Target
$60.67Price Target Upside29.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)4.92
Revenue Forecast (FY)$2.72B
Skyward Specialty Insurance Group, Inc. Business Overview & Revenue Model
Company Description
Incorporated in 2006 and headquartered in Houston, Texas, Skyward Specialty Insurance Group, Inc. functions as an insurance holding company. The firm specializes in writing commercial property and casualty insurance policies for clients across the...
How the Company Makes Money
Skyward Specialty primarily makes money through (1) underwriting income and (2) net investment income. Underwriting income is generated by collecting premiums on specialty P&C policies and managing the total cost of providing that coverage (claims...
Skyward Specialty Insurance Group, Inc. Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive tone driven by strong quarter-over-quarter and year-over-year financial performance: 39% EPS growth, 20%+ operating ROE, double-digit premium growth on a pro forma basis, expanding fee-generating premiums (up 49%), and solid underwriting results (combined ratio 89.5, 87.7 ex-cat). Management reiterated 2026 guidance and highlighted strategic initiatives (Uber autonomy, life sciences product, Syndicate 1972) that should support future growth. Headwinds discussed include an aggressive/softening property market, reinsurance price deterioration on certain covers, a meaningful but contained decline in the captives & risk specialty segment, and some volatility in alternative investments. Overall the positives (strong profitability, capital strength, premium and fee growth, disciplined underwriting) outweigh the identified challenges, supporting a constructive outlook.Positive Updates
Earnings Per Share and Profitability
Diluted operating EPS improved to $1.25 from $0.90 year-over-year, a 39% increase. Net income was $50 million and operating income was $57 million. Annualized operating return on equity was 20.3%, indicating strong profitability.
Negative Updates
Challenging Property Market and Reinsurance Pricing
Management described accelerating softness and aggressive pricing in parts of the global property market. Reinsurance risk-adjusted rates came down meaningfully on renewal; second-event cover reduced from ~$7.5 million to ~$5 million, indicating less favorable reinsurance economics.
Read all updates
Q1-2026 Updates
Positive
Negative
Earnings Per Share and Profitability
Diluted operating EPS improved to $1.25 from $0.90 year-over-year, a 39% increase. Net income was $50 million and operating income was $57 million. Annualized operating return on equity was 20.3%, indicating strong profitability.
Read all positive updates
Company Guidance
Management reaffirmed its unchanged 2026 guidance and reiterated key targets while pointing to a strong Q1 that underpins that outlook: Q1 diluted operating EPS was $1.25 (up 39% YoY) with net income $50M and operating income $57M, underwriting income $52M, annualized operating ROE 20.3%, book value per share $27.50 (up 10% QoQ and ~31% YoY), gross written premiums $668M (pro forma +10%), managed premiums $968M (pro forma +20%) including $300M of fee-generating premiums (+49%), combined ratio 89.5 (1.8 pts of CAT) / ex‑cat 87.7, Skyward combined ratio 88.9 (86.8 ex‑cat) and Apollo combined ratio 85.3 (non‑cat loss ratio 52.8, expense ratio 32.5); investment portfolio ≈$2.7B (90% fixed income/short‑term) with net investment income $27M and embedded yield 5.3%; balance sheet: shareholders’ equity $1.2B and leverage ~28%; and management reaffirmed fee income guidance of $30–$35M for 2026 (Q1 fee income ≈$10M with ~$4–$5M of related fee‑based expenses) and an aggregate expense‑ratio target below 30% (Q1 was 28.5%).Skyward Specialty Insurance Group, Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.48B | 1.41B | 1.15B | 895.40M | 636.40M | 535.82M |
| Gross Profit | 460.55M | 622.11M | 327.89M | 271.65M | 168.20M | 134.35M |
| EBITDA | 251.01M | 227.88M | 165.59M | 124.02M | 60.29M | 58.53M |
| Net Income | 177.70M | 170.03M | 118.83M | 85.98M | 39.40M | 38.32M |
Balance Sheet | ||||||
| Total Assets | 6.55B | 4.79B | 3.73B | 2.95B | 2.36B | 2.12B |
| Cash, Cash Equivalents and Short-Term Investments | 2.45B | 1.55B | 1.18B | 1.35B | 774.17M | 664.74M |
| Total Debt | 486.00M | 119.98M | 119.54M | 128.69M | 128.61M | 128.53M |
| Total Liabilities | 5.32B | 3.78B | 2.94B | 2.29B | 1.94B | 1.69B |
| Stockholders Equity | 1.22B | 1.01B | 794.00M | 661.03M | 421.66M | 426.08M |
Cash Flow | ||||||
| Free Cash Flow | 424.25M | 402.62M | 300.89M | 335.03M | 206.61M | 173.13M |
| Operating Cash Flow | 427.85M | 408.08M | 305.12M | 338.19M | 208.94M | 175.28M |
| Investing Cash Flow | -627.96M | -366.90M | -243.69M | -493.81M | -193.38M | -183.01M |
| Financing Cash Flow | 363.04M | 411.00K | -4.23M | 130.95M | 2.18M | 1.38M |
Skyward Specialty Insurance Group, Inc. Technical Analysis
Positive
46.83
Price Trends
46.28
Positive
45.63
Positive
46.68
Positive
Market Momentum
1.26
Negative
65.09
Neutral
80.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKWD, the sentiment is Positive. The current price of 46.83 is below the 20-day moving average (MA) of 47.02, above the 50-day MA of 46.28, and above the 200-day MA of 46.68, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 65.09 is Neutral, neither overbought nor oversold. The STOCH value of 80.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKWD.
Skyward Specialty Insurance Group, Inc. Risk Analysis
Skyward Specialty Insurance Group, Inc. disclosed 48 risk factors in its most recent earnings report. Skyward Specialty Insurance Group, Inc. 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
Skyward Specialty Insurance Group, Inc. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $2.09B | 6.16 | 32.64% | 0.82% | 22.11% | 90.84% | |
82 Outperform | $1.90B | 4.17 | 48.38% | ― | ― | ― | |
76 Outperform | $2.05B | 11.51 | 17.35% | ― | 28.95% | 37.60% | |
76 Outperform | $822.81M | 14.03 | 14.75% | ― | 22.83% | 2.00% | |
75 Outperform | $1.04B | 16.22 | 7.16% | 4.59% | 10.67% | -13.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $2.02B | 15.82 | 8.36% | 2.88% | 21.30% | 69.50% |
* Financial Sector Average
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Skyward Specialty Insurance Group, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Skyward Specialty Shareholders Back Board, Pay and Auditor
Positive
May 11, 2026
On May 5, 2026, Skyward Specialty Insurance Group, Inc. held its Annual Meeting of Shareholders, where shareholders elected Peter C. Hearn and Gena Ashe as directors based on proxy-solicited votes. At the same meeting, investors approved the compa...
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.