Skyward Specialty Insurance Group, Inc. (SKWD) AI Stock Analysis

• Market Cap: $1.88B
• Dividend Yield: N/A
• Average Volume (3M): 509.08K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.37
• Revenue Growth: 22.20%
• EPS Growth: 5.78%
• Country: US
• Employees: 580
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.89
• Shares Outstanding: 40,486,656
• 10 Day Avg. Volume: 505,259
• 30 Day Avg. Volume: 509,083
• PEG Ratio: 0.64
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 6.73
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 7.23
• Enterprise Value/Ebitda: 14.38
• 1Y Price Target: $60.43
• Price Target Upside: 29.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: $51.00 ▲(9.44% Upside)

Skyward Specialty Insurance Group, Inc. receives a strong overall score due to its robust financial performance and positive earnings call highlights. Despite technical indicators suggesting a bearish trend, the company's strategic growth in key segments and effective cost management provide a solid foundation. The reasonable valuation further supports its potential, although the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

The 18% growth in gross written premiums highlights Skyward's ability to expand its market reach and enhance its revenue base, indicating strong demand for its specialized insurance products.

Strategic Acquisition

The acquisition of Apollo Group Holdings enhances Skyward's presence in U.S. specialty markets, providing strategic alignment and financial benefits, which strengthens its competitive position.

Technological Advancements

The use of AI and advanced technology in underwriting and claims processing improves operational efficiency and customer service, providing a competitive edge in the insurance industry.

Negative Factors

Volatility in Alternative Investments

Volatility in alternative investments, particularly in oil and gas and real estate, can impact overall investment returns, posing a risk to financial stability and cash flow predictability.

Challenges in Property Market

Increasing competition in the property market limits growth opportunities, potentially affecting Skyward's ability to expand its property insurance segment and maintain market share.

Exposure to Loss Inflation

Exposure to loss inflation pressures Skyward to be selective in growing its casualty business, which could constrain expansion and profitability in this segment over the long term.

Skyward Specialty Insurance Group, Inc. Business Overview & Revenue Model

Company Description

Skyward 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 Money

Skyward Specialty Insurance Group generates revenue primarily through the underwriting of insurance policies. The company collects premiums from policyholders in exchange for coverage against specific risks. Key revenue streams include premiums from property and casualty insurance, specialty insurance products, and risk management services. Additionally, SKWD may earn investment income from its reserves and surplus funds, which are allocated in various investment instruments. Strategic partnerships with brokers and agents also enhance their distribution channels, facilitating wider reach and penetration into niche markets, contributing to overall revenue growth.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.26B	1.15B	895.40M	636.40M	535.82M	447.89M
Gross Profit	351.22M	327.89M	271.65M	168.20M	134.35M	48.73M
EBITDA	176.63M	165.59M	124.02M	60.29M	58.53M	-83.02M
Net Income	131.97M	118.83M	85.98M	39.40M	38.32M	-74.64M
Balance Sheet
Total Assets	4.34B	3.73B	2.95B	2.36B	2.12B	1.95B
Cash, Cash Equivalents and Short-Term Investments	1.77B	1.18B	863.92M	774.17M	664.74M	299.41M
Total Debt	119.55M	119.54M	128.69M	128.61M	128.53M	128.45M
Total Liabilities	3.44B	2.94B	1.51B	1.94B	1.69B	1.65B
Stockholders Equity	899.91M	794.00M	661.03M	421.66M	426.08M	393.52M
Cash Flow
Free Cash Flow	370.09M	300.89M	335.03M	206.61M	173.13M	42.64M
Operating Cash Flow	374.83M	305.12M	338.19M	208.94M	175.28M	44.71M
Investing Cash Flow	-315.17M	-243.69M	-493.81M	-193.38M	-183.01M	-74.93M
Financing Cash Flow	5.23M	-4.23M	130.95M	2.18M	1.38M	56.30M

Skyward Specialty Insurance Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.60
• 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 SKWD, the sentiment is Negative. The current price of 46.6 is below the 20-day moving average (MA) of 47.39, below the 50-day MA of 47.87, and below the 200-day MA of 51.68, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 31.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKWD.

Skyward Specialty Insurance Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKWD	77 Outperform	$1.88B	14.71	16.20%	―	22.20%	5.78%
STC	75 Outperform	$2.11B	20.07	7.08%	2.71%	16.22%	―
SAFT	74 Outperform	$1.04B	12.19	10.08%	5.20%	18.52%	65.66%
SLDE	73 Outperform	$1.84B	1.44	―	―	―	―
HCI	72 Outperform	$2.60B	18.29	23.90%	0.80%	9.62%	-18.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ROOT	66 Neutral	$1.21B	16.28	27.52%	―	59.76%	―

Skyward Specialty Insurance Group, Inc. Corporate Events

Skyward Specialty Insurance Acquires Apollo Group Holdings

On September 2, 2025, Skyward Specialty Insurance Group, Inc. announced its agreement to acquire 100% of Apollo Group Holdings Limited for $555 million, with the transaction expected to close in the first quarter of 2026. This acquisition aligns with Skyward Specialty’s strategy to enhance its presence in U.S. specialty markets by integrating Apollo’s innovative underwriting platform, which operates at Lloyd’s of London, and is expected to deliver significant financial benefits and strategic alignment for both companies.

The most recent analyst rating on (SKWD) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Skyward Specialty Insurance Group, Inc. stock, see the SKWD Stock Forecast page.

Skyward Specialty’s Earnings Call: Record Income and Growth

Skyward Specialty Insurance Group, Inc. recently held its earnings call, revealing a strong financial performance with record adjusted operating income and significant growth in premiums. Despite facing challenges such as reduced investment income from alternative investments and softening conditions in the global property market, the company remains optimistic. Its diversified portfolio and strategic growth in key areas like agriculture and credit markets contribute to a positive outlook.

Skyward Specialty Insurance Sees Strong Q2 2025 Growth

Skyward Specialty Insurance Group, Inc., a rapidly growing specialty insurance company, provides commercial property and casualty products across various sectors, including agriculture, credit (re)insurance, and specialty programs, operating through nine underwriting divisions. The company recently reported its second quarter 2025 earnings, showcasing a significant increase in net income and adjusted operating income compared to the same period in 2024.