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

• Market Cap: $2.09B
• Dividend Yield: N/A
• Average Volume (3M): 345.48K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.39
• Revenue Growth: 22.51%
• EPS Growth: 2.19%
• Country: US
• Employees: 580
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.05
• Shares Outstanding: 40,487,366
• 10 Day Avg. Volume: 299,944
• 30 Day Avg. Volume: 345,484
• 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: 0.85
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 9.39
• 1Y Price Target: $64.83
• Price Target Upside: 24.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 3.83
• Revenue Forecast (FY): $2.16B

• Rating: 79 Outperform
• Price Target: $53.00 ▲(1.96% Upside)

Skyward Specialty Insurance Group, Inc. exhibits strong financial performance and strategic growth initiatives, particularly through the Apollo acquisition. While technical indicators suggest a bearish trend, the company's robust earnings and strategic positioning provide a favorable outlook. The valuation is reasonable, and recent corporate events further bolster the company's growth prospects.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, enhancing long-term profitability and competitiveness.

Apollo Acquisition

The Apollo acquisition is set to enhance market position and financial performance, providing strategic growth opportunities and increased leverage.

Cash Flow Generation

Robust cash flow generation supports financial stability and flexibility, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Increased Competition

Rising competition in the P&C market may pressure margins and growth, requiring strategic adjustments to maintain competitive advantage.

Volatility in Investment Income

Volatile investment income can impact financial predictability and profitability, necessitating careful portfolio management to mitigate risks.

Operational Efficiency Volatility

Operational efficiency volatility can affect profitability and resource allocation, requiring consistent management focus to stabilize operations.

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

Company Description

Skyward Specialty Insurance Group, Inc., an insurance holding company, engages in underwriting commercial property and casualty insurance coverages in the United States. The company offers general liability, excess liability, professional liability, commercial auto, group accident and health, property, surety, and workers' compensation insurance products. Skyward Specialty Insurance Group, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.

How the Company Makes Money

Skyward Specialty Insurance Group generates revenue primarily through the underwriting of insurance policies. The company collects premiums from policyholders in exchange for coverage against specific risks. Key revenue streams include premiums from property and casualty insurance, specialty insurance products, and risk management services. Additionally, SKWD may earn investment income from its reserves and surplus funds, which are allocated in various investment instruments. Strategic partnerships with brokers and agents also enhance their distribution channels, facilitating wider reach and penetration into niche markets, contributing to overall revenue growth.

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 volatility, the company's conservative leverage and strong cash position provide a cushion against potential risks, positioning it well in the insurance industry.

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	1.34B	1.15B	895.40M	636.40M	535.82M	447.89M
Gross Profit	376.23M	327.89M	271.65M	168.20M	134.35M	48.73M
EBITDA	190.12M	165.59M	124.02M	60.29M	58.53M	-83.02M
Net Income	141.20M	118.83M	85.98M	39.40M	38.32M	-74.64M
Balance Sheet
Total Assets	4.59B	3.73B	2.95B	2.36B	2.12B	487.16M
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.18B	1.35B	774.17M	664.74M	74.85M
Total Debt	119.56M	119.54M	128.69M	128.61M	128.53M	128.45M
Total Liabilities	3.63B	2.94B	2.29B	1.94B	1.69B	411.35M
Stockholders Equity	961.42M	794.00M	661.03M	421.66M	426.08M	75.81M
Cash Flow
Free Cash Flow	371.38M	300.89M	335.03M	206.61M	173.13M	42.64M
Operating Cash Flow	378.21M	305.12M	338.19M	208.94M	175.28M	44.71M
Investing Cash Flow	-331.30M	-243.69M	-493.81M	-193.38M	-183.01M	-74.93M
Financing Cash Flow	1.00K	-4.23M	130.95M	2.18M	1.38M	56.30M

Skyward Specialty Insurance Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 51.98 is above the 20-day moving average (MA) of 48.92, above the 50-day MA of 47.79, and above the 200-day MA of 51.79, indicating a neutral trend. The MACD of 1.13 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 80.67 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. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKWD	79 Outperform	$2.09B	15.31	16.06%	―	22.51%	2.19%
SAFT	75 Outperform	$1.18B	13.44	9.97%	4.59%	13.35%	16.56%
STC	74 Outperform	$2.15B	19.98	7.08%	2.88%	16.22%	69.80%
HCI	73 Outperform	$2.52B	12.42	31.94%	0.82%	8.71%	17.26%
SLDE	73 Outperform	$2.43B	1.79	52.29%	―	―	―
ROOT	70 Neutral	$1.15B	23.82	17.02%	―	38.50%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Skyward Specialty Insurance Group, Inc. Corporate Events

Skyward Specialty Gets Approval for Apollo Acquisition

On December 3, 2025, Skyward Specialty Insurance Group, Inc. announced it has received regulatory and minority shareholder approvals for its acquisition of Apollo Group Holdings Limited, with the transaction expected to close in early 2026. The company also provided its 2026 financial guidance, projecting significant growth in gross written premiums, net income, and adjusted operating income, reflecting the anticipated impact of the Apollo acquisition and its commitment to delivering top quartile results.

Skyward Specialty Enters New $150M Credit Agreement

On November 13, 2025, Skyward Specialty Insurance Group, Inc. entered into a new Credit Agreement with a revolving loan facility initially set at $150 million, which will increase to $250 million upon the closing of its acquisition of Apollo Group Holdings Limited. The agreement includes provisions for letters of credit and an uncommitted accordion feature for additional financing, with interest rates tied to the company’s debt to capitalization ratio. Concurrently, the company terminated its previous credit agreement from March 28, 2023, fully repaying all outstanding amounts.

Skyward Specialty Appoints Christopher Peirce to Board

Skyward Specialty Insurance Group, Inc. announced the appointment of Christopher Peirce to its Board of Directors, effective February 1, 2026. Peirce, with 30 years of experience at Liberty Mutual Insurance, is expected to bring significant financial and strategic expertise to the board, particularly as the company anticipates the closure of the Apollo acquisition in early 2026. Additionally, Peirce is set to become the Chair of the Audit Committee after the 2025 financial year, succeeding Robert Creager, who will not seek re-election after his term ends in May.