Education
About Us
Working with TipRanks
Follow Us
Skyward Specialty Insurance Group, Inc. (SKWD)
NASDAQ:SKWD
RESEARCH TOOLSreports
Top Page
Skyward Specialty Insurance Group, Inc.
(NASDAQ:SKWD)
79Outperform
Positive Factors
Earnings
Skyward should continue to outperform earnings expectations given the favorable outlook for both top-line growth and margin performance.
Premium Growth
Premium growth should continue to benefit from increased demand for specialty and E&S coverage.
Technology and Efficiency
By leveraging technology across all aspects of its business, Skyward is able to enhance risk selection and better manage claims, thereby boosting efficiency and returns.
Negative Factors
Growth and Loss Ratios
The combination of decelerating growth and increasing loss ratios is expected to lead returns to settle in a lower range.
Risk-Reward Outlook
The risk-reward outlook is largely in balance, leading to a downgrade from Outperform to Peer Perform.
Valuation
Valuation appears full given growth outlook, making it difficult to support further multiple expansion.
Skyward Specialty Insurance Group, Inc. (SKWD) vs. S&P 500 (SPY)
Market Cap
$2.57B
Dividend YieldN/A
Average Volume (3M)455.11K
Price to Earnings (P/E)21.3
Beta (1Y)0.37
Revenue Growth25.88%
EPS Growth9.45%
CountryUS
Employees580
SectorFinancial
Sector Strength84
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.90
Shares Outstanding40,402,878
10 Day Avg. Volume483,156
30 Day Avg. Volume455,113
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)2.91
Price to Sales (P/S)0.00
P/FCF Ratio8.02
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit2.09
Enterprise Value/Ebitda3.43
Forecast
1Y Price Target
$58.00Price Target Upside-8.82% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Skyward Specialty Insurance Group, Inc. Business Overview & Revenue Model
Company DescriptionSkyward Specialty Insurance Group, Inc., an insurance holding company, engages in underwriting commercial property and casualty insurance coverages in the United States. The company offers general liability, excess liability, professional liability, commercial auto, group accident and health, property, surety, and workers' compensation insurance products. Skyward Specialty Insurance Group, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.
How the Company Makes MoneySkyward Specialty Insurance Group, Inc. generates revenue primarily through the underwriting of specialty insurance policies. The company earns money by collecting premiums from policyholders in exchange for coverage against specified risks. These premiums serve as the primary revenue stream for the company. Skyward also invests a portion of the premiums collected in various financial instruments to generate investment income, which contributes to overall earnings. Additionally, the company may form strategic partnerships with other insurance providers or reinsurers to expand its product offerings and manage risk effectively, further influencing its revenue generation.
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.85
Very Positive
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.78
Positive
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.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.15B | 895.40M | 642.42M | 535.82M | 447.89M | Gross Profit |
| 1.15B | 895.40M | 642.42M | 535.82M | 447.89M | EBIT |
| 152.74M | 110.10M | 56.19M | 48.75M | -94.66M | EBITDA |
| 165.59M | 124.02M | 61.32M | 58.05M | -84.01M | Net Income Common Stockholders |
| 118.83M | 85.98M | 39.40M | 38.32M | -74.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.18B | 863.92M | 774.17M | 206.38M | 299.41M | Total Assets |
| 3.73B | 2.95B | 2.37B | 2.12B | 1.95B | Total Debt |
| 119.54M | 128.69M | 128.61M | 128.53M | 128.45M | Net Debt |
| -2.07M | 62.80M | 83.17M | 86.42M | 64.99M | Total Liabilities |
| 2.94B | 2.29B | 1.95B | 1.69B | 1.65B | Stockholders Equity |
| 794.00M | 661.03M | 421.66M | 426.08M | 303.22M |
| Cash Flow | Free Cash Flow | |||
| 300.89M | 335.03M | 206.61M | 173.13M | 42.64M | Operating Cash Flow |
| 305.12M | 338.19M | 208.94M | 175.28M | 44.71M | Investing Cash Flow |
| -243.69M | -493.81M | -193.38M | -183.01M | -74.93M | Financing Cash Flow |
| -4.23M | 130.95M | 2.18M | 1.38M | 56.30M |
Skyward Specialty Insurance Group, Inc. Technical Analysis
Positive
63.61
Price Trends
53.63
Positive
50.71
Positive
47.57
Positive
Market Momentum
2.53
Negative
75.29
Negative
94.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKWD, the sentiment is Positive. The current price of 63.61 is above the 20-day moving average (MA) of 57.16, above the 50-day MA of 53.63, and above the 200-day MA of 47.57, indicating a bullish trend. The MACD of 2.53 indicates Negative momentum. The RSI at 75.29 is Negative, neither overbought nor oversold. The STOCH value of 94.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKWD.
Skyward Specialty Insurance Group, Inc. Risk Analysis
Skyward Specialty Insurance Group, Inc. disclosed 40 risk factors in its most recent earnings report. Skyward Specialty Insurance Group, Inc. 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
Skyward Specialty Insurance Group, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.57B | 21.26 | 16.03% | ― | 25.88% | 9.45% | |
73 Outperform | $2.27B | 45.13 | 17.95% | ― | 98.66% | ― | |
70 Outperform | $1.25B | 29.39 | 14.40% | ― | 50.21% | 37.28% | |
69 Neutral | $1.24B | 16.90 | 8.75% | 4.33% | 19.05% | 40.69% | |
67 Neutral | $1.92B | 15.87 | 28.75% | 0.96% | 20.95% | 3.25% | |
64 Neutral | $12.82B | 9.83 | 7.68% | 17000.34% | 12.38% | -5.56% | |
53 Neutral | $2.30B | ― | -35.57% | ― | 21.44% | 2.99% |
* Financial Sector Average
Performance Comparison
SKWD
Skyward Specialty Insurance Group, Inc.
63.61
27.30
75.19%
SAFT
Safety Insurance Group
83.13
7.24
9.54%
HCI
HCI Group
166.43
65.48
64.86%
LMND
Lemonade
32.57
15.06
86.01%
ROOT
Root
135.74
71.96
112.83%
BOW
Bowhead Specialty Holdings Inc.
38.41
12.71
49.46%
Skyward Specialty Insurance Group, Inc. Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 18.74%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
Skyward Specialty Insurance Group, Inc. reported a strong first quarter with record net income and operating income, driven by significant growth in specific divisions and improved investment income. While the company faced challenges such as cat losses and declines in global property premiums, the strategic growth and successful reinsurance renewals demonstrate solid management and positioning in the market.Q1-2025 Updates
Positive Updates
Record Net Income and Operating Income
Skyward Specialty Insurance Group, Inc. reported net income of $42 million and adjusted operating income of $37.3 million, marking the best performance in the company's history.
Strong Growth in Premiums
Gross written premiums grew by 17%, and net written premiums increased by 20% for the quarter, driven by Agriculture, Accident and Health, Specialty Programs, Transactional E and S, and Surety.
Improved Combined Ratio
The first quarter combined ratio was 90.5%, including 2.2 points of cat losses, a notable improvement driven by a 0.4 point better non-cat loss ratio compared to 2024.
Investment Income Increase
Net investment income rose to $19.3 million in the quarter, up from $18.3 million a year ago, with an embedded yield increase to 5.2% from 4.7%.
Successful Reinsurance Renewals
Property reinsurance programs, including cat programs, renewed orderly with better protection at lower costs and better terms.
Strategic Growth in Agriculture and Health Divisions
The Global Agriculture unit and Accident Health Division contributed significantly to growth, with innovative approaches and strategic positioning in high-return areas less exposed to P&C cycles.
Negative Updates
Impact of Cat Losses
The quarter experienced 2.2 points of cat losses, mainly from Midwest convective storms and California wildfires.
Global Property Premium Decline
Global property premiums decreased by 18.5%, although account retention remained strong.
Loss in Alternative Investments
The company reported a loss of $2.1 million in the alternative and strategic investments portfolio due to changes in the fair value of limited partnership investments.
Company Guidance
During the Skyward Specialty Insurance Group's first-quarter 2025 earnings call, the company reported a record net income of $42 million and an adjusted operating income of $37.3 million, with $28.5 million in underwriting income. The adjusted operating income was $0.90 per diluted share. Gross written premiums grew by 17%, while net written premiums increased by 20%, with a net retention rate of 64.1%. The combined ratio for the quarter was 90.5%, including 2.2 points of cat losses. The non-cat loss ratio improved to 60.2%, and the expense ratio was 28.1%. Net investment income rose to $19.3 million. The effective tax rate was 18.2%, and the company maintained a low 12% debt-to-capital ratio. The management highlighted strong growth in the Agriculture, Accident and Health, Transactional E&S, Surety, and Specialty Programs divisions, attributing it to the company's diversified portfolio and strategic execution. The company expects continued growth, targeting a mid-teens percentage for the full year.Skyward Specialty Insurance Group, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Skyward Specialty Elects Directors and Approves Compensation
Neutral
May 13, 2025
On May 7, 2025, Skyward Specialty Insurance Group, Inc. held its Annual Meeting of Shareholders. During the meeting, Marcia Dall and Anthony J. Kuczinski were elected as directors, and the compensation of named executive officers was approved. The company decided to hold annual advisory votes on executive compensation until 2031. Additionally, Ernst & Young LLP was ratified as the independent auditors for the fiscal year ending December 31, 2025.
The most recent analyst rating on (SKWD) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Skyward Specialty Insurance Group, Inc. stock, see the SKWD Stock Forecast page.
Spark’s Take on SKWD Stock
According to Spark, TipRanks’ AI Analyst, SKWD is a Outperform.
Skyward Specialty Insurance Group, Inc. shows robust financial performance, with growth in revenue, net income, and cash flow, supported by strategic management and a strong market position. The technical analysis indicates strong momentum, though caution is advised due to overbought conditions. Valuation is moderate, reflecting growth prospects. Overall, the company’s strategic initiatives and solid financial health position it well for future growth, earning a solid stock score.
To see Spark’s full report on SKWD stock, click here.
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.