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Palomar Holdings
(NASDAQ:PLMR)
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Rating:81Outperform
Price Target:
$163.00
▲(23.65% Upside)
Action:Reiterated
Date:08/12/26
PLMR scores well primarily on strong financial performance (high profitability, very low leverage, and robust cash generation) and a constructive earnings outlook highlighted by raised 2026 guidance and strong ROE targets. The score is tempered by only mixed near-term technical signals and moderate valuation support (P/E ~17.1, with no dividend yield data provided).
Positive Factors
Specialty growth and profitability
Strong premium growth combined with higher underwriting income indicates Palomar is expanding its specialty platform while preserving attractive economics. This supports scale benefits, reinforces distribution momentum, and provides a durable base for continued earnings growth across targeted insurance niches.
Negative Factors
Higher loss exposure from crop and casualty
Rapid expansion in crop and selected casualty increases exposure to lines with higher loss ratios and less predictable timing. If this mix persists, elevated claims could pressure underwriting margins and make reported profitability more variable despite strong premium growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty growth and profitability
Strong premium growth combined with higher underwriting income indicates Palomar is expanding its specialty platform while preserving attractive economics. This supports scale benefits, reinforces distribution momentum, and provides a durable base for continued earnings growth across targeted insurance niches.
Read all positive factors
Palomar Holdings (PLMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.33B
Dividend Yield0.35%
Average Volume (3M)207.45K
Price to Earnings (P/E)16.5
Beta (1Y)0.22
Revenue Growth60.27%
EPS Growth30.93%
CountryUS
Employees439
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)7.67
Shares Outstanding26,317,682
10 Day Avg. Volume253,187
30 Day Avg. Volume207,451
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)3.81
Price to Sales (P/S)4.10
P/FCF Ratio8.93
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue3.40
Enterprise Value/Gross Profit5.86
Enterprise Value/Ebitda12.72
Forecast
1Y Price Target
$162.75Price Target Upside23.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)10.08
Revenue Forecast (FY)$2.63B
Palomar Holdings Business Overview & Revenue Model
Company Description
Palomar Holdings, Inc. functions as an insurance holding company dedicated to providing specialized property coverage for both private homeowners and businesses. Its comprehensive product range encompasses essential offerings such as residential a...
How the Company Makes Money
Palomar makes money primarily through its insurance operations and investment income. (1) Insurance underwriting revenue: The company earns premiums from policyholders for specialty property and casualty coverages (including its core residential e...
Palomar Holdings Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance: record adjusted earnings, robust top-line growth (GWP +27%), meaningful franchise expansions (crop +96%, surety +236%), favorable reinsurance placements, and capital returns (share repurchases and dividend). Challenges were acknowledged — higher losses and an increased loss ratio due to mix and timing (notably crop), competitive rate pressure in large commercial earthquake and property, and modestly higher expense ratios — but management emphasized disciplined underwriting, conservative reserving, and line-by-line reinsurance and capital management actions to mitigate these headwinds. On balance, the positive execution, guidance raise, and material franchise expansions outweigh the manageable lowlights.Positive Updates
Record Adjusted Earnings and Guidance Raise
Adjusted net income was $63.8M (+31% YoY) or $2.36 per diluted share (+34% YoY). Management raised full-year adjusted net income guidance to $270M–$280M (midpoint implies ~27% YoY growth) and expects an adjusted ROE of ~26%.
Negative Updates
Higher Losses and Increased Loss Ratio
Losses & LAE rose to $99M (vs $46.2M prior year). Total loss ratio increased to 34.5% from 25.7% YoY, driven largely by growth in higher-loss-ratio lines (crop and selected casualty) and timing of crop losses appearing earlier than premium recognition.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Adjusted Earnings and Guidance Raise
Adjusted net income was $63.8M (+31% YoY) or $2.36 per diluted share (+34% YoY). Management raised full-year adjusted net income guidance to $270M–$280M (midpoint implies ~27% YoY growth) and expects an adjusted ROE of ~26%.
Read all positive updates
Company Guidance
Management raised full‑year 2026 adjusted net income guidance to $270–$280 million (midpoint implying ~27% y/y adjusted net income growth and an adjusted ROE of ~26%), noting the range includes $8–$12 million of catastrophe losses; they also reiterated the goal to sustain adjusted ROE above the Palomar 2X threshold of 20%. For 2026 they expect an adjusted combined ratio in the mid‑70s and a loss ratio (including catastrophes and prior‑year development) in the mid‑to‑upper‑30s (with the high point in Q3), a net earned premium ratio rising into the upper‑40s for the year (2025: 44.9%) with Q3 as the low point, and slight improvement in acquisition and other underwriting expense ratios versus 2025 (2025 acquisition 12.1%, other underwriting 8.0%), noting H1 will be higher and H2 lower because of crop seasonality. The guidance assumes continued strong investment income (Q2 yield ~4.9% and new investments >5%), and reflects capital actions already underway (Q2 repurchases of ~368,719 shares for ~$41 million at an average $111/share and initiation of a $0.45 quarterly dividend).Palomar Holdings Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
91
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.09B | 875.97M | 553.86M | 375.93M | 327.09M | 247.79M |
| Gross Profit | 634.10M | 647.37M | 269.45M | 195.59M | 137.64M | 110.90M |
| EBITDA | 292.19M | 262.65M | 157.44M | 111.92M | 72.54M | 60.72M |
| Net Income | 203.16M | 197.07M | 117.57M | 79.20M | 52.17M | 45.85M |
Balance Sheet | ||||||
| Total Assets | 3.96B | 2.23B | 2.26B | 1.71B | 1.31B | 925.73M |
| Cash, Cash Equivalents and Short-Term Investments | 1.57B | 725.15M | 550.86M | 695.35M | 583.17M | 482.97M |
| Total Debt | 295.77M | 7.09M | 0.00 | 52.60M | 36.40M | 3.47M |
| Total Liabilities | 2.98B | 1.28B | 1.53B | 1.24B | 921.70M | 531.57M |
| Stockholders Equity | 980.94M | 942.67M | 729.03M | 471.25M | 384.75M | 394.17M |
Cash Flow | ||||||
| Free Cash Flow | 410.85M | 401.99M | 260.91M | 109.35M | 163.65M | 82.96M |
| Operating Cash Flow | 415.26M | 409.12M | 261.16M | 116.11M | 169.58M | 87.81M |
| Investing Cash Flow | -634.39M | -353.98M | -306.24M | -128.48M | -156.81M | -58.19M |
| Financing Cash Flow | 200.53M | -28.79M | 73.77M | -3.94M | 5.02M | -13.04M |
Palomar Holdings Technical Analysis
Neutral
131.82
Price Trends
132.05
Negative
126.07
Positive
125.60
Positive
Market Momentum
-2.23
Positive
42.57
Neutral
35.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLMR, the sentiment is Neutral. The current price of 131.82 is above the 20-day moving average (MA) of 131.24, below the 50-day MA of 132.05, and above the 200-day MA of 125.60, indicating a neutral trend. The MACD of -2.23 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 35.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PLMR.
Palomar Holdings Risk Analysis
Palomar Holdings disclosed 53 risk factors in its most recent earnings report. Palomar Holdings 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
Palomar Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.33B | 16.49 | 21.61% | 0.35% | 60.27% | 30.93% | |
81 Outperform | $510.60M | 5.79 | 25.95% | 5.32% | ― | ― | |
81 Outperform | $1.25B | 11.74 | 17.11% | ― | 36.63% | 67.30% | |
80 Outperform | $1.11B | 17.87 | 13.73% | ― | 24.59% | 25.14% | |
79 Outperform | $7.51B | 13.32 | 29.06% | 0.28% | 15.82% | 28.42% | |
72 Outperform | $2.44B | 12.45 | 16.84% | ― | 37.99% | 34.78% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
PLMR
Palomar Holdings
126.49
13.98
12.43%
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SKWD
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BOW
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33.77
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AII
American Integrity Insurance Group, Inc.
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19.67%
ASIC
Ategrity Specialty Holdings LLC
26.17
8.97
52.15%
Palomar Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Palomar Highlights Strong Q2 Results and First Dividend
Positive
Aug 11, 2026
On August 10, 2026, Palomar updated its corporate investor presentation, highlighting second-quarter performance marked by $630.5 million in gross written premium, up 27% year on year, and adjusted net income of $63.8 million, up 31%. The company ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Palomar Holdings Announces Strong Q2 Results, Initiates Dividend
Positive
Aug 4, 2026
Palomar Holdings reported strong second-quarter 2026 results on August 4, 2026, with net income rising 13% year-on-year to $52.6 million and adjusted net income jumping 31% to $63.8 million. Diluted earnings per share increased 15.5% to $1.94, whi...
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.