The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 59 | 14.6x | 20.3x | Near average | |
Growth | 84 | 60.7% | 5.6% | Above average | |
Quality | 76 | 26.6% | 7.6% | Above average | |
Safety | 77 | -0.4x | 0.4x | Above average | |
Capital Return | 41 | — | 2.15% | Near average | |
Momentum | 30 | — | — | Below average | |
Sentiment | 28 | — | — | Below average |
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Palomar Holdings, Inc. (PLMR) is a leading player in the US specialty insurance sector, focusing on providing innovative and diversified insurance products including earthquake, hurricane, casualty, crop, and surety and credit insurance. The company's business model relies on diversifying its investment and underwriting portfolio and distributing risks between admitted and excess and surplus (E&S) products, enabling it to achieve strong, stable, and resilient returns against the cyclical fluctuations typical of the traditional insurance market.
During the first quarter of 2026, the company achieved strong financial results, with total revenue reaching $278.9 million, net income of $42.9 million, and earnings per share of $1.57. Gross written premiums increased by 42% year-over-year to reach $629.8 million, and net earned premiums reached $261.4 million, representing a 59% increase compared to the first quarter of the previous year. The company recorded an adjusted combined ratio of 76% and an annualized adjusted return on equity of 26.6%, exceeding its strategic target of 20%.
Palomar Holdings, Inc. stock is currently trading at a price of $109.76, which is slightly below the average analyst price target of $110.25, and within a wide 52-week trading range of $100.81 to $165.1. The stock holds a general analyst consensus recommendation of "Buy", with the highest specified price target for the stock at $134 and the lowest target at $88.
The company raised its adjusted net income guidance for 2026 to be between $262 million and $278 million following a strong start in the first quarter and significant success in renewing reinsurance programs under excellent financial terms. Additionally, the issuance of Torrey Pines Re catastrophe bonds worth $410 million contributed to reducing reinsurance costs by 15% on a risk-adjusted basis, alongside the outperformance of the surety and crop insurance segments.
The crop insurance segment recorded significant year-over-year growth of 82% in gross written premiums during the first quarter of 2026, thanks to hiring specialized personnel and high demand for government-supported ECO products. The company now expects to achieve 35% growth in this segment for the full year 2026 compared to the previous forecast of 30%, noting that current drought risks in states like Oklahoma and Kansas are mitigated through risk-sharing structures and reinsurance.
The company repurchased 190,255 shares during the first quarter of 2026 at a cost of $23.1 million, and followed up by purchasing an additional 38,875 shares through May 5, 2026, at a cost of $4.2 million. As a result of management's belief that the stock trades below its intrinsic value, the Board of Directors approved a new $200 million share repurchase program for a two-year period that went into effect on May 6, 2026.
Automated analysis for informational purposes only — not investment advice.
The company faces intense competition in the commercial property and commercial earthquake segments, as commercial earthquake renewal rates decreased by 18% in the first quarter of 2026, and rates for large commercial property and excess and surplus (E&S) lines fell by 12% to 15%. The company is addressing this decline with strict underwriting discipline, showing full willingness to not renew contracts or walk away from business that does not meet target returns, relying on the growth of the residential earthquake segment as a solid balancing factor.