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

• Market Cap: $1.90B
• Dividend Yield: N/A
• Average Volume (3M): 457.58K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.42
• Revenue Growth: 22.56%
• EPS Growth: 2.19%
• Country: US
• Employees: 580
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.05
• Shares Outstanding: 40,486,656
• 10 Day Avg. Volume: 400,202
• 30 Day Avg. Volume: 457,577
• 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: 1.11
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 8.21
• Enterprise Value/Ebitda: 7.24
• 1Y Price Target: $64.43
• Price Target Upside: 41.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 3.75
• Revenue Forecast (FY): $1.99B

• Rating: 74 Outperform
• Price Target: $51.00 ▲(11.70% Upside)

Skyward Specialty Insurance Group, Inc. scores well due to its strong financial performance and positive earnings call, highlighting robust growth and strategic initiatives. However, technical analysis indicates bearish trends, and valuation is moderate, slightly tempering the overall score.

Positive Factors

Revenue Growth

Skyward's revenue growth exceeding expectations highlights its strong market position and effective strategy, ensuring sustained expansion.

Technological Innovation

Investment in technology enhances underwriting capabilities, providing a competitive edge and supporting long-term growth and efficiency.

Strategic Product Launch

The new product addresses industry gaps, expanding market reach and reinforcing Skyward's position as an innovative leader in specialty insurance.

Negative Factors

Increased Competition

Rising competition may pressure margins and limit growth opportunities, necessitating strategic adjustments to maintain profitability.

Investment Income Volatility

Volatility in investment income can impact financial stability, requiring careful asset management to ensure consistent returns.

Auto Liability Inflation

Rising auto liability costs could increase claims expenses, affecting profitability and necessitating pricing adjustments.

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

Company Description

Skyward Specialty Insurance Group, Inc. (SKWD) is a specialized insurance provider that focuses on delivering innovative and tailored insurance solutions across various sectors, including property, casualty, and specialty insurance. The company aims to meet the unique needs of its clients through a robust portfolio of insurance products and services designed for a diverse range of industries, including transportation, energy, and healthcare. SKWD leverages advanced technology and a customer-centric approach to risk management, ensuring that it remains competitive in a dynamic insurance landscape.

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	257.07M	327.89M	271.65M	168.20M	134.35M	48.73M
EBITDA	291.58M	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	1.95B
Cash, Cash Equivalents and Short-Term Investments	1.97B	1.18B	863.92M	774.17M	664.74M	299.41M
Total Debt	100.00M	119.54M	128.69M	128.61M	128.53M	128.45M
Total Liabilities	3.63B	2.94B	1.51B	1.94B	1.69B	1.65B
Stockholders Equity	961.42M	794.00M	661.03M	421.66M	426.08M	393.52M
Cash Flow
Free Cash Flow	202.48M	300.89M	335.03M	206.61M	173.13M	42.64M
Operating Cash Flow	206.84M	305.12M	338.19M	208.94M	175.28M	44.71M
Investing Cash Flow	-15.73M	-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: Negative
• Last Price: 45.66
• 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 45.66 is below the 20-day moving average (MA) of 46.69, below the 50-day MA of 47.33, and below the 200-day MA of 51.74, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 44.08 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	74 Outperform	$1.90B	13.51	16.06%	―	22.56%	2.19%
SAFT	74 Outperform	$1.05B	11.94	9.97%	5.31%	13.48%	16.74%
STC	74 Outperform	$1.93B	19.18	7.08%	2.92%	16.22%	―
SLDE	73 Outperform	$2.11B	1.63	―	―	―	―
HCI	72 Outperform	$2.67B	18.27	23.90%	0.80%	9.62%	-18.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ROOT	67 Neutral	$1.22B	18.69	17.02%	―	38.50%	―

Skyward Specialty Insurance Group, Inc. Corporate Events

Skyward Specialty Insurance Group Reports Strong Q3 2025 Results

Skyward Specialty Insurance Group, Inc. is a specialty insurance company offering a range of commercial property and casualty products, operating through nine underwriting divisions and known for its innovative approach in the insurance sector. In its third quarter of 2025, Skyward Specialty reported a net income of $45.9 million, marking a significant increase from the previous year, alongside a notable rise in gross written premiums by 51.6% to $606.5 million. The company achieved a combined ratio of 89.2%, indicating strong underwriting performance, and an annualized return on equity of 19.3%. The agriculture and credit (re)insurance division led the growth, contributing significantly to the overall increase in premiums. Skyward Specialty’s strategic focus on niche markets and a diversified portfolio has proven effective, as evidenced by the robust financial results and improved expense ratios. Looking ahead, the company remains optimistic about its growth prospects, supported by its strategic initiatives and the anticipated completion of the Apollo acquisition, positioning it well for sustained success in the competitive insurance landscape.

Skyward Specialty Insurance Acquires Apollo Group Holdings

On September 2, 2025, Skyward Specialty Insurance Group, Inc. announced its agreement to acquire 100% of Apollo Group Holdings Limited for $555 million, with the transaction expected to close in the first quarter of 2026. This acquisition aligns with Skyward Specialty’s strategy to enhance its presence in U.S. specialty markets by integrating Apollo’s innovative underwriting platform, which operates at Lloyd’s of London, and is expected to deliver significant financial benefits and strategic alignment for both companies.

The most recent analyst rating on (SKWD) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Skyward Specialty Insurance Group, Inc. stock, see the SKWD Stock Forecast page.

Skyward Specialty’s Earnings Call: Record Income and Growth

Skyward Specialty Insurance Group, Inc. recently held its earnings call, revealing a strong financial performance with record adjusted operating income and significant growth in premiums. Despite facing challenges such as reduced investment income from alternative investments and softening conditions in the global property market, the company remains optimistic. Its diversified portfolio and strategic growth in key areas like agriculture and credit markets contribute to a positive outlook.

Skyward Specialty Insurance Sees Strong Q2 2025 Growth

Skyward Specialty Insurance Group, Inc., a rapidly growing specialty insurance company, provides commercial property and casualty products across various sectors, including agriculture, credit (re)insurance, and specialty programs, operating through nine underwriting divisions. The company recently reported its second quarter 2025 earnings, showcasing a significant increase in net income and adjusted operating income compared to the same period in 2024.