Kinsale Capital Group (KNSL) AI Stock Analysis

• Market Cap: $9.77B
• Dividend Yield: 0.16%
• Average Volume (3M): 201.06K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.40
• Revenue Growth: 21.51%
• EPS Growth: 20.03%
• Country: US
• Employees: 660
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 4.78
• Shares Outstanding: 23,300,001
• 10 Day Avg. Volume: 222,229
• 30 Day Avg. Volume: 201,062
• PEG Ratio: 0.76
• Price to Book (P/B): 7.26
• Price to Sales (P/S): 6.78
• P/FCF Ratio: 11.31
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 6.65
• Enterprise Value/Gross Profit: 7.61
• Enterprise Value/Ebitda: 14.13
• 1Y Price Target: $493.86
• Price Target Upside: 18.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: $506.00 ▲(21.42% Upside)

Kinsale Capital Group's overall stock score is driven by its strong financial performance and positive earnings call insights, highlighting robust growth and strategic positioning. However, technical indicators suggest potential bearish momentum, and the valuation indicates moderate pricing with a low dividend yield. Competitive challenges in the Commercial Property division also present risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and profitability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and resilience against market fluctuations.

Balance Sheet Health

A debt-free balance sheet ensures financial stability and reduces risk, allowing the company to capitalize on growth opportunities without financial strain.

Negative Factors

Commercial Property Challenges

Declining premiums in the Commercial Property division suggest competitive pressures that may impact revenue and profitability in this segment.

Competitive Market Environment

Intense competition in the E&S market could pressure margins and limit pricing power, challenging future growth and profitability.

Negative Pricing Trends

Negative pricing trends in certain lines could erode margins and affect the company's ability to maintain profitability in affected segments.

Kinsale Capital Group Business Overview & Revenue Model

Company Description

Kinsale Capital Group, Inc., a specialty insurance company, provides property and casualty insurance products in the United States. The company's commercial lines offerings include construction, small business, excess and general casualty, commercial property, allied health, life sciences, energy, environmental, health care, inland marine, public entity, and commercial insurance, as well as product, professional, and management liability insurance. It markets and sells its insurance products in all 50 states, the District of Columbia, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands primarily through a network of independent insurance brokers. The company was founded in 2009 and is headquartered in Richmond, Virginia.

How the Company Makes Money

Kinsale Capital Group generates revenue primarily through the underwriting of insurance premiums from its diverse portfolio of specialty insurance products. The company earns money by collecting premiums from policyholders, which are then invested to generate additional income. Key revenue streams include commercial general liability, property insurance, and professional liability coverage, among others. The company also benefits from favorable loss ratios, which enhance profitability. Partnerships with brokers and agents are significant as they help expand Kinsale's market reach, allowing the company to tap into various niche markets and increase its policyholder base, contributing to overall earnings.

Kinsale Capital Group Financial Statement Overview

Summary

Kinsale Capital Group demonstrates strong financial performance with impressive revenue growth, robust profitability, and a sound balance sheet with zero debt reliance. The company's cash flow generation is notably strong, supporting its operational and strategic initiatives. However, the absence of EBIT and EBITDA margins for 2024 suggests a potential strategic change.

Income Statement

Kinsale Capital Group displayed an impressive revenue growth rate of approximately 29.61% from 2023 to 2024. The company maintains a robust gross profit margin at 100%, given its business model in the insurance industry. Net profit margin improved significantly from 25.17% in 2023 to 26.13% in 2024, reflecting strong profitability. However, EBIT and EBITDA margins are not applicable for 2024, which may indicate a strategic change or reclassification of expenses.

Balance Sheet

The balance sheet is strong, with a debt-to-equity ratio of 0, highlighting no reliance on debt financing. Return on equity increased from 28.36% in 2023 to 27.96% in 2024, indicating efficient use of equity despite a slight decline. The equity ratio stands robust at 30.36% in 2024, suggesting a stable financial position with a healthy proportion of equity financing.

Cash Flow

Kinsale Capital Group's cash flow position is excellent, with a substantial free cash flow growth rate of 11.61% from 2023 to 2024. The operating cash flow to net income ratio is strong at 2.35, underscoring effective cash generation from operations. Additionally, the free cash flow to net income ratio of 2.30 highlights solid cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.59B	1.22B	819.20M	639.78M	459.89M
Gross Profit	1.51B	814.63M	1.22B	819.20M	639.78M	459.89M
EBITDA	810.54M	530.65M	397.59M	202.57M	192.10M	102.16M
Net Income	446.67M	414.84M	308.09M	159.11M	152.66M	88.42M
Balance Sheet
Total Assets	5.56B	4.89B	3.77B	2.75B	2.03B	1.55B
Cash, Cash Equivalents and Short-Term Investments	2.14B	3.65B	126.69M	1.96B	1.51B	1.16B
Total Debt	184.26M	184.12M	183.85M	195.75M	42.70M	42.57M
Total Liabilities	3.83B	3.40B	2.69B	2.00B	82.06M	970.66M
Stockholders Equity	1.72B	1.48B	1.09B	745.45M	699.34M	576.24M
Cash Flow
Free Cash Flow	940.11M	952.36M	853.23M	550.91M	401.12M	247.10M
Operating Cash Flow	985.88M	976.30M	859.84M	557.82M	407.04M	279.97M
Investing Cash Flow	-968.21M	-960.13M	-860.89M	-708.57M	-351.95M	-379.43M
Financing Cash Flow	-50.59M	-29.66M	-28.52M	185.99M	-11.14M	76.14M

Kinsale Capital Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 416.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNSL, the sentiment is Negative. The current price of 416.74 is below the 20-day moving average (MA) of 434.11, below the 50-day MA of 446.37, and below the 200-day MA of 457.99, indicating a bearish trend. The MACD of -8.68 indicates Positive momentum. The RSI at 36.71 is Neutral, neither overbought nor oversold. The STOCH value of 35.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KNSL.

Kinsale Capital Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THG	79 Outperform	$6.41B	11.80	17.27%	2.01%	4.47%	102.98%
AFG	78 Outperform	$12.11B	15.93	16.92%	6.33%	3.35%	-14.16%
RLI	76 Outperform	$5.97B	18.61	22.72%	4.02%	10.29%	-4.70%
KNSL	74 Outperform	$9.77B	21.89	29.98%	0.16%	21.51%	20.03%
AXS	71 Outperform	$7.50B	9.10	14.44%	1.83%	6.87%	43.53%
CNA	66 Neutral	$12.57B	14.43	8.23%	8.23%	6.12%	-31.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%