Kinsale Capital Group (KNSL) AI Stock Analysis

• Market Cap: $10.21B
• Dividend Yield: 0.14%
• Average Volume (3M): 189.76K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.52
• Revenue Growth: 30.65%
• EPS Growth: 34.04%
• Country: US
• Employees: 660
• Sector: Financial
• Sector Strength: 82
• Industry: Insurance - Property & Casualty
• EPS (TTM): 17.78
• Shares Outstanding: 23,182,020
• 10 Day Avg. Volume: 217,444
• 30 Day Avg. Volume: 189,765
• PEG Ratio: 0.73
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.89
• Price to Cash Flow (P/CF): 12.80
• P/FCF Ratio: 12.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $456.83
• Price Target Upside: 4.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

Kinsale Capital Group's overall stock score reflects its strong financial performance, underpinned by robust revenue and cash flow growth, and a sound balance sheet. The positive earnings call further supports the company's prospects, despite challenges from wildfire losses and market competition. However, the valuation appears high, which may limit upside potential. Technical analysis suggests some caution due to mixed signals.

Positive Factors

Competitive Advantage

Kinsale Capital's modern technology backbone contributes to its expense ratio advantage over peers.

Growth Opportunities

The E&S market is experiencing favorable conditions, providing Kinsale with strong growth opportunities.

Long-term Growth

A compelling 10-20% long-term growth and EPS outlook profile is nearly double that of P&C peers.

Negative Factors

Competition

An increasing number of competitors targeting Kinsale's markets makes it more challenging to maintain high growth rates.

Market Conditions

Continued soft conditions within the large-account 'shared & layered' market are impacting growth.

Profit Margins

Profit margins for 1Q25 are modeled with a 62% core loss ratio, which is slightly worse than the consensus.

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 makes money by underwriting and selling specialty insurance products in the excess and surplus lines market. The company generates revenue primarily from the premiums collected on the insurance policies it underwrites. Additionally, Kinsale benefits from investment income generated from the reserves and capital it holds. The company's profitability is largely influenced by its underwriting performance, which involves assessing and pricing risk accurately, and its investment strategy. Key revenue streams include premiums from property, casualty, and specialty insurance lines. Kinsale's strategic focus on niche markets with higher risk profiles allows it to charge higher premiums, contributing to its earnings. Significant partnerships with specialized brokers and agents also play a role in distributing its products and expanding its market reach.

Kinsale Capital Group Financial Statement Overview

Summary

Overall, Kinsale Capital Group exhibits a formidable financial performance, driven by strong 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. While EBIT and EBITDA were not reported for 2024, the company's financial health remains impressive, suggesting effective management and strategic execution.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.59B	1.22B	819.20M	639.78M	459.89M
	Gross Profit
1.59B	1.22B	819.20M	639.78M	459.89M
	EBIT
0.00	390.75M	199.85M	188.59M	99.78M
	EBITDA
0.00	397.59M	202.57M	192.10M	102.16M
	Net Income Common Stockholders
414.84M	308.09M	159.11M	152.66M	88.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.65B	126.69M	1.96B	1.51B	1.16B
	Total Assets
4.89B	3.77B	2.75B	2.03B	1.55B
	Total Debt
184.12M	183.85M	195.75M	42.70M	42.57M
	Net Debt
70.91M	57.15M	39.47M	-78.34M	-34.52M
	Total Liabilities
3.40B	2.69B	2.00B	82.06M	970.66M
	Stockholders Equity
1.48B	1.09B	745.45M	699.34M	576.24M
Cash Flow		Free Cash Flow
952.36M	853.23M	550.91M	401.12M	247.10M
	Operating Cash Flow
976.30M	859.84M	557.82M	407.04M	279.97M
	Investing Cash Flow
-960.13M	-860.89M	-708.57M	-351.95M	-379.43M
	Financing Cash Flow
-29.66M	-28.52M	185.99M	-11.14M	76.14M

Kinsale Capital Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 437.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 437.46 is below the 20-day moving average (MA) of 467.55, below the 50-day MA of 456.70, and below the 200-day MA of 453.11, indicating a bearish trend. The MACD of 10.98 indicates Negative momentum. The RSI at 65.67 is Neutral, neither overbought nor oversold. The STOCH value of 88.86 is Negative, 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
KNSL	83 Outperform	$10.21B	24.77	32.28%	0.14%	30.65%	34.04%
THG	82 Outperform	$5.43B	12.87	16.03%	2.32%	4.07%	1110.92%
CNA	78 Outperform	$12.18B	12.82	9.40%	3.90%	7.30%	-20.49%
AFG	75 Outperform	$9.82B	11.06	20.33%	2.58%	6.91%	4.97%
RLI	75 Outperform	$6.65B	19.37	23.56%	0.81%	18.31%	13.13%
SIGI	75 Outperform	$5.01B	25.51	6.82%	1.77%	15.35%	-44.64%
Sector *	64 Neutral	$12.70B	9.08	9.19%	4.89%	16.29%	-8.64%

Kinsale Capital Group Corporate Events

Kinsale Capital Group Hosts Investor Day Event

On January 16, 2025, Kinsale Capital Group will host an Investor Day in Richmond, Virginia, to present its financial and strategic outlook. The event is seen as an opportunity for stakeholders to gain insights into the company’s performance and future strategies, potentially impacting its market positioning and investor relations.