Palomar Holdings, Inc. (PLMR) AI Stock Analysis

Palomar Holdings, Inc. is an insurance holding company founded in 2013 and based in La Jolla, California. The company provides specialty property insurance solutions to residential and commercial customers. Its primary offerings include residential and commercial earthquake insurance, commercial all-risk coverage, specialty homeowners insurance, inland marine insurance, Hawaii hurricane coverage, and residential flood insurance. It also provides assumed reinsurance, commercial flood insurance, real estate errors and omissions coverage, and products for real estate investors. Palomar distributes these products through retail agents, wholesale brokers, program administrators, and carrier partnerships.

Between FY2021 and FY2025, Palomar's revenue expanded from $247.8M to $876.0M, reflecting a 5-year revenue CAGR of 39.1% from FY2020 to FY2025. In FY2025, revenue grew 58.2% and net income reached $197.1M, up from $117.6M in FY2024 and $45.8M in FY2021. Gross margin improved to 73.9% in FY2025, while operating margin rose to 28.9% and net margin hit 22.5%. Diluted EPS increased from $2.05 in FY2021 to $7.88 in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 54.7% year-over-year, and quarterly earnings increased 15.5%, bringing trailing twelve month EPS to $7.43.

As of June 30, 2026, Palomar held $1.57B in cash and short-term investments against total debt of $295.8M, yielding a net cash position of $1.27B. Shareholders' equity stood at $980.9M and total assets were $3.96B, with a debt-to-equity ratio of 0.30 and a current ratio of 0.54. In FY2025, the company generated $409.1M in operating cash flow and $402.0M in free cash flow. Cash deployment in FY2025 included $7.1M in capital expenditures and $37.3M spent on share buybacks.

Palomar carries a market cap of $3.70B and an enterprise value of $3.58B. It trades at a trailing P/E of 18.8x, above the 12.1x median of its US-listed Financial Services peers. Its price-to-sales ratio of 3.4x is also slightly above the peer group median of 3.2x. Over the past year, Palomar's stock returned 24.4%, outperforming the S&P 500 (SPY) return of 16.8%. Over a five-year period, Palomar's return of 71.4% trailed the S&P 500 return of 83.0%.

Palomar pays a quarterly dividend with an annual forward dividend of $1.80, representing a dividend yield of 1.29%. The company's payout ratio is 5.2%. Its last ex-dividend date was August 19, 2026.

Wall Street coverage consists of 4 Strong Buy, 3 Buy, and 1 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target of $159.17 implies a 14.0% upside compared to the last close of $139.59. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $10.08 on revenue of $1.19B. Palomar beat EPS expectations in each of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Palomar Holdings, Inc. (PLMR). 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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