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Baldwin Insurance Group (BWIN)
NASDAQ:BWIN
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Baldwin Insurance Group
(NASDAQ:BWIN)
66Neutral
Positive Factors
Business Momentum
Strong new business momentum is heading into 2025 for Baldwin Insurance Group.
Organic Growth
Overall organic growth accelerated to 19%, above the 15% estimate.
Negative Factors
EBITDA Pressure
BWIN is expected to face pressures on its EBITDA in 2025 due to higher reinsurance costs.
Baldwin Insurance Group (BWIN) vs. S&P 500 (SPY)
Market Cap
$4.70B
Dividend YieldN/A
Average Volume (3M)532.25K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth13.99%
EPS Growth75.14%
CountryUS
Employees3,851
SectorFinancial
Sector Strength82
IndustryInsurance
Share Statistics
EPS (TTM)-0.39
Shares Outstanding68,152,040
10 Day Avg. Volume712,581
30 Day Avg. Volume532,254
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.38
Price to Cash Flow (P/CF)71.50
P/FCF Ratio71.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.25Price Target Upside3.20% 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 demonstrated strong revenue growth and improved operational efficiency. However, persistent net losses and high financial leverage pose risks to its financial stability. The company's ability to generate cash flow is a positive sign, indicating 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
Positive
39.97
Price Trends
39.95
Positive
42.75
Negative
42.57
Negative
Market Momentum
-0.31
Positive
49.65
Neutral
43.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWIN, the sentiment is Positive. The current price of 39.97 is below the 20-day moving average (MA) of 39.99, above the 50-day MA of 39.95, and below the 200-day MA of 42.57, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 43.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $22.76B | 10.01 | 17.61% | 2.23% | 13.22% | 24.83% | |
80 Outperform | $166.30B | 19.70 | 36.98% | 1.73% | 21.36% | 118.77% | |
79 Outperform | $33.93B | 11.49 | 19.58% | 1.62% | 8.19% | 29.77% | |
75 Outperform | $59.16B | 12.15 | 18.94% | 1.59% | 12.23% | 68.50% | |
72 Outperform | $54.99B | 12.21 | 23.80% | 1.77% | 12.28% | ― | |
66 Neutral | $4.70B | ― | -4.29% | ― | 13.99% | 75.14% | |
64 Neutral | $14.07B | 10.53 | 9.02% | 4.23% | 17.01% | -7.59% |
* Financial Sector Average
Performance Comparison
BWIN
Baldwin Insurance Group
39.97
10.55
35.86%
ALL
Allstate
207.49
47.69
29.84%
CINF
Cincinnati Financial
145.39
29.37
25.31%
HIG
Hartford Financial
118.89
20.94
21.38%
PGR
Progressive
283.69
81.45
40.27%
TRV
Travelers Companies
260.91
42.85
19.65%
Baldwin Insurance Group Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 0.28% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant organic growth, EBITDA margin expansion, and cash flow improvement. However, there are challenges due to California wildfires and potential impacts on reinsurance pricing. Overall, the highlights significantly outweigh the lowlights.Highlights
Strong Organic Revenue Growth
For the fourth quarter, organic revenue grew 19% with strong double-digit organic growth across all three segments. For the year, organic revenue growth was 17%.
Adjusted EBITDA Margin Expansion
Adjusted EBITDA margin expanded 310 basis points in the fourth quarter to 19%. For the full year, it expanded 200 basis points to 22.5%.
Record New Business Productivity
Record new business productivity in IAS with sales velocity of 21.5%, a 410 basis point improvement over the prior year.
Significant Cash Flow Growth
Adjusted free cash flow for the full year grew 97% to $134.9 million. Net leverage declined to 4.1 times from 4.8 times.
Successful Segment Performance
UCTS segment had a fantastic fourth quarter with organic revenue growth of 25%, and MIS segment delivered total organic revenue growth of 19%.
Launch of Baldwin-Sponsored Reciprocal Exchange
Formal approval and a certificate of authority from the Texas Department of Insurance to form and launch a Texas domiciled reciprocal insurance exchange focused on the builder book of business.
Lowlights
California Wildfire Impact
While California property represents less than 10% of the overall premium base, the E&S homeowner's portfolio has some exposure to recent fires which may impact reinsurance pricing.
GAAP Net Loss
Recorded a GAAP net loss for the fourth quarter of $34.8 million, or GAAP diluted loss per share of $0.31. GAAP net loss for the full year was $41.1 million.
Potential Reinsurance Pricing Pressure
Uncertainty around potential impacts from the California wildfires on reinsurance pricing for the June 1 renewals in the MGA.
Company Guidance
During the Baldwin Group's Fourth Quarter 2024 earnings call, the company reported strong financial performance with a 19% organic revenue growth for the quarter and 17% for the year across all segments, driven by record new business productivity. Adjusted EBITDA margin expanded by 310 basis points in the quarter to 19%, and for the year, it grew by 200 basis points to 22.5%. The company's adjusted free cash flow grew significantly to $134.9 million, while net leverage declined from 4.8 times to 4.1 times by year-end. The IAS segment achieved a 16% organic revenue growth for the quarter, while UCTS and MIS segments reported 25% and 19% growth, respectively. The Baldwin Group also announced progress in satisfying earn-out obligations, with most expected to be completed by March, paving the way for increased capital allocation flexibility. For 2025, the company anticipates organic revenue growth at the lower end of their 10-15% long-term range, adjusted EBITDA margin expansion, and adjusted free cash flow from operations between $150 million and $175 million.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.