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Baldwin Insurance Group (BWIN)
NASDAQ:BWIN
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Baldwin Insurance Group
(NASDAQ:BWIN)
42Neutral
Positive Factors
Financial Performance
Upside was driven by better-than-expected EBITDA margin expansion.
Growth Potential
Strong double-digit organic growth across the more retail-oriented UCTS and MIS segments.
Negative Factors
Revenue and Margin Pressure
BWIN is facing pressure on the economics of home insurance products, which is affecting its revenue and margins.
Uncertainty and Challenges
Baldwin underperformed the sector due to downward EBITDA revisions and uncertainty from a change to its capacity arrangement for its retail programs.
Baldwin Insurance Group (BWIN) vs. S&P 500 (SPY)
Market Cap
$4.46B
Dividend YieldN/A
Average Volume (3M)605.90K
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth12.11%
EPS Growth43.67%
CountryUS
Employees4,000
SectorFinancial
Sector Strength85
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)0.65
Shares Outstanding68,152,040
10 Day Avg. Volume643,438
30 Day Avg. Volume605,903
Financial Highlights & Ratios
PEG Ratio-2.96
Price to Book (P/B)5.01
Price to Sales (P/S)0.00
P/FCF Ratio50.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$43.50Price Target Upside9.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Baldwin Insurance Group Business Overview & Revenue Model
Company DescriptionBaldwin Insurance Group (BWIN) is a comprehensive insurance provider operating across various sectors, including personal, commercial, and specialty insurance. The company offers a wide range of products such as auto, home, life, and health insurance for individuals, as well as tailored commercial insurance solutions for businesses. BWIN is dedicated to providing innovative and reliable insurance services that meet the diverse needs of its clients.
How the Company Makes MoneyBaldwin Insurance Group makes money primarily through the collection of insurance premiums from policyholders. These premiums are the main revenue stream, as clients pay for coverage against potential risks and damages. The company also earns through investment income, utilizing the premiums collected to invest in various financial instruments, thereby generating additional returns. Furthermore, BWIN may partner with other financial institutions and reinsurers to mitigate risk and enhance its service offerings, which can contribute to its earnings through shared premiums and commissions. The company focuses on maintaining a balanced portfolio of insurance products to cater to both individual and commercial clients, ensuring a steady flow of revenue.
Baldwin Insurance Group Financial Statement Overview
Summary
Baldwin Insurance Group has exhibited strong revenue growth and operational efficiency improvements. However, net income remains negative, and the high debt-to-equity ratio indicates financial leverage risks. The company’s solid cash flow generation suggests potential for future profitability.Income Statement
Baldwin Insurance Group has shown consistent revenue growth over the past years, with revenue increasing from $137.8M in 2019 to $1.38B in 2024. The gross profit margin has remained relatively stable, but the net income has been consistently negative, indicating profitability challenges. The EBIT and EBITDA margins have improved recently, showing operational efficiency gains.70
Positive
Balance Sheet
The company has a high debt-to-equity ratio due to significant liabilities compared to stockholders' equity, which poses a risk in terms of financial leverage. However, the equity ratio is strong, indicating that a significant portion of the company's assets is financed by equity. The return on equity is negative, reflecting the impact of net losses.65
Positive
Cash Flow
Operating cash flow has improved significantly over the years, indicating better cash generation from core operations. Free cash flow has also shown growth, supporting the company's ability to finance its operations and investments without relying heavily on external financing. The ratios of operating and free cash flow to net income are strong, suggesting effective cash management.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.38B | 1.22B | 980.72M | 567.29M | 240.92M | Gross Profit |
| 344.19M | 334.21M | 174.92M | 115.73M | 46.64M | EBIT |
| 60.65M | -42.55M | 86.36M | 51.51M | 20.17M | EBITDA |
| 164.62M | 115.26M | 88.82M | 65.08M | 18.75M | Net Income Common Stockholders |
| -24.52M | -90.14M | -76.03M | -58.10M | -29.89M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 148.12M | 116.21M | 230.47M | 227.74M | 142.02M | Total Assets |
| 3.53B | 3.50B | 24.08M | 82.54M | 4.00M | Total Debt |
| 1.64B | 1.63B | 12.49M | 17.50M | 5.34M | Net Debt |
| 1.49B | 1.52B | -217.98M | -210.24M | -136.68M | Total Liabilities |
| 2.53B | 2.48B | 619.00K | 592.00K | 455.00K | Stockholders Equity |
| 583.22M | 560.41M | 3.46B | 2.88B | 1.53B |
| Cash Flow | Free Cash Flow | |||
| 61.10M | 23.27M | -24.44M | 34.81M | 31.35M | Operating Cash Flow |
| 102.15M | 44.64M | -2.46M | 40.13M | 36.82M | Investing Cash Flow |
| 13.30M | -21.92M | -414.36M | -678.47M | -677.79M | Financing Cash Flow |
| -29.64M | -26.23M | 419.55M | 724.06M | 711.92M |
Baldwin Insurance Group Technical Analysis
Negative
39.80
Price Trends
41.79
Negative
40.86
Negative
43.78
Negative
Market Momentum
-0.91
Positive
45.65
Neutral
26.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWIN, the sentiment is Negative. The current price of 39.8 is below the 20-day moving average (MA) of 40.78, below the 50-day MA of 41.79, and below the 200-day MA of 43.78, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 26.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BWIN.
Baldwin Insurance Group Risk Analysis
Baldwin Insurance Group disclosed 60 risk factors in its most recent earnings report. Baldwin Insurance Group 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
Baldwin Insurance Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $5.32B | 7.98 | 14.09% | 2.08% | 4.33% | 10.21% | |
79 Outperform | $5.88B | 13.63 | 15.74% | 2.14% | 3.09% | 168.29% | |
73 Outperform | $5.26B | 23.60 | 7.48% | 1.69% | 13.37% | -35.09% | |
69 Neutral | $6.16B | 84.00 | 1.24% | 3.36% | 3.55% | 8.91% | |
64 Neutral | $4.55B | 154.22 | 0.61% | 0.06% | -4.09% | -94.77% | |
64 Neutral | $12.74B | 9.83 | 7.63% | 17000.35% | 12.34% | -5.32% | |
42 Neutral | $4.46B | ― | -5.28% | ― | 12.11% | 43.67% |
* Financial Sector Average
Performance Comparison
BWIN
Baldwin Insurance Group
39.80
7.29
22.42%
SIGI
Selective Insurance Group
88.63
-7.65
-7.95%
THG
Hanover Insurance
165.93
32.69
24.53%
WTM
White Mountains Insurance Group
1,800.20
64.80
3.73%
ACT
Enact Holdings
36.24
5.41
17.55%
JXN
Jackson Financial Incorporation
85.20
12.09
16.54%
Baldwin Insurance Group Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -2.71%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance with significant growth in key segments like UCTS and successful strategic initiatives like the capitalization of BRIE. However, challenges in the Insurance Advisory Solutions segment and pressure in the employee benefits business due to economic uncertainty were notable concerns. Despite these challenges, the company maintained positive momentum and confidence in achieving its full-year guidance.Q1-2025 Updates
Positive Updates
Strong Overall Financial Performance
Baldwin Group reported a 10% organic revenue growth and a 12% growth in adjusted EBITDA for the first quarter, with an 80 basis points improvement in adjusted EBITDA margin.
Underwriting Capacity and Technology Solutions Segment Growth
The UCTS segment experienced a significant organic revenue growth of 32%, driven by strong performance in multifamily and home portfolios, and the introduction of the multifamily captive.
Successful Capitalization of Reciprocal Insurance Exchange
Baldwin Group finalized the $110 million capitalization of Builder Reciprocal Insurance Exchange, marking a milestone in vertically integrating across the value chain.
Improved Client Retention
Client retention in Insurance Advisory Solutions improved year-over-year to approximately 92%.
Positive Credit Rating Developments
Baldwin Group was upgraded by S&P to B stable and had its B2 rating affirmed by Moody’s with an outlook change from negative to stable.
Negative Updates
Challenges in Insurance Advisory Solutions
Organic revenue growth in Insurance Advisory Solutions was 3%, impacted by negative 3.5% rate and exposure changes on renewals, largely due to a competitive insurance rate environment.
Employee Benefits Business Pressure
Renewal premium change in the employee benefits business was flat, attributed to muted hiring trends and a cautious outlook from clients amid macroeconomic uncertainty.
High Earn-Out Payments
Baldwin Group paid $123 million in earn-outs in the first quarter and an additional $37 million in April, impacting net leverage which increased to 4.2 times.
Company Guidance
During the Baldwin Group's first quarter 2025 earnings call, the company reported strong first-quarter results with a 10% increase in organic revenue growth and a 12% rise in adjusted EBITDA, achieving an adjusted EBITDA margin improvement of 80 basis points. Adjusted diluted earnings per share grew by 16%, while adjusted free cash flow increased by 6% to $26 million. They paid $123 million in earn-outs in Q1 and $37 million in April, with another $22 million expected in Q2. The Insurance Advisory Solutions segment experienced 3% organic revenue growth, with a 14% sales velocity and 92% client retention. The Underwriting Capacity and Technology Solutions segment saw a 32% organic revenue growth, driven by strong performance in multifamily and home portfolios. The Main Street Insurance Solution segment achieved 10% organic revenue growth. Looking ahead, Baldwin anticipates total revenue between $370 million to $380 million and adjusted EBITDA of $83 million to $88 million for Q2, with organic revenue growth at the low end of their 10%-15% long-term range.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.