Bowhead Specialty Holdings Inc. (BOW) AI Stock Analysis

Bowhead Specialty Holdings Inc., established in 2020 and headquartered in New York, New York, provides specialty property and casualty insurance solutions across the United States. A subsidiary of Bowhead Insurance Holdings LP, the company offers casualty coverage tailored for risks in construction, distribution, heavy manufacturing, real estate, and hospitality. It also specializes in professional liability insurance for financial institutions, directors and officers, cyber liability, and errors and omissions. Additionally, Bowhead delivers healthcare solutions covering hospitals, senior care providers, managed care organizations, and medical facilities, using a distribution network in wholesale and retail markets.

Bowhead grew revenue from $187.6M in FY2022 to $283.4M in FY2023, $425.6M in FY2024, and $551.5M in FY2025, reflecting a 3-year revenue CAGR of 43.3%. Net income increased from $11.3M in FY2022 to $25.0M in FY2023, $38.2M in FY2024, and $53.8M in FY2025, with net margin improving from 6.0% to 9.8%. Operating margin rose from 7.8% in FY2022 to 12.2% in FY2025, while gross margin was 32.1% in FY2025. For the trailing twelve months ending June 30, 2026, revenue reached $615.2M and EPS was $1.85. In the latest quarter ended June 30, 2026, quarterly revenue grew 23.0% and quarterly earnings increased 33.3% year-over-year.

As of June 30, 2026, Bowhead held $1.75B in cash and short-term investments against total debt of $146.6M, resulting in net cash of $1.60B. Shareholders' equity was $472.4M and total assets stood at $2.68B, with a debt-to-equity ratio of 0.31 and a current ratio of 5573.37. Operating cash flow grew to $331.6M in FY2025, up from $294.3M in FY2024. Capital expenditures in FY2025 were $5.6M, resulting in free cash flow of $326.0M.

At a last close of $34.19, Bowhead has a market capitalization of $1.13B and an enterprise value of $1.12B. The stock trades at a trailing P/E of 18.5x and a forward P/E of 13.8x, both above the US-listed Financial Services median of 12.1x and 10.8x, respectively. Its price-to-sales ratio of 1.8x sits below the peer median of 3.2x, while price-to-book is 2.4x. Over the past year, Bowhead returned 36.4%, outperforming the S&P 500 (SPY) return of 16.8%.

Wall Street coverage consists of 1 Buy and 6 Hold ratings, with zero Strong Buy, Sell, or Strong Sell ratings. The mean price target is $34.33, representing 0.4% upside versus the last close of $34.19. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $682.8M and EPS of $2.01, representing 22.0% EPS growth. Bowhead has beaten EPS estimates in 4 of its last 4 quarters. The company's next earnings date is November 3, 2026.

This page is an AI-written research summary of Bowhead Specialty Holdings Inc. (BOW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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