Palomar Holdings, Inc. (PLMR) stock analysis

PLMRNasdaqFire, Marine & Casualty InsuranceFiscal year ends December 31

Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 6, 2026Score 11/3029% above fair value

$159.16−1.93 (-1.20%)

Close on Nov 11, 2026Market cap $4.19BP/E 19.9Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Mixed11 of 30 checks passed

Palomar passes 11 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 1/6
Growth: 4/6
Past performance: 5/6
Financial health: 0/6
Dividend: 1/6

What stands out

Return on equity over 15%
Return on equity was 23.3% over the last twelve months and averaged 17.4% over five years.
Earnings grew over 5 years
Net income grew 99.4% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 38.9% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 52.5% a year over the last three fiscal years.

What to watch

Margin of safety under 20%
The price is 29.1% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $159.16 is above our fair value estimate of $123.26.
Earnings growth not accelerating
Net income grew 23.4% over the last twelve months, against a 5-year average of 99.4% a year.
P/E above the industry
Palomar's P/E of 19.9 is above the Fire, Marine, and Casualty Insurance median of 10.4.

Valuation1/6

P/E below its 5-year median
Palomar's P/E of 19.9 is below its own 5-year median of 25.4.
P/E above the industry
Palomar's P/E of 19.9 is above the Fire, Marine, and Casualty Insurance median of 10.4.
P/S above the industry
Palomar's price-to-sales of 3.40 is above the Fire, Marine, and Casualty Insurance median of 1.28.
P/B above the industry
Palomar's price-to-book of 4.25 is above the Fire, Marine, and Casualty Insurance median of 1.62.
Trading above fair value
The share price of $159.16 is above our fair value estimate of $123.26.
Margin of safety under 20%
The price is 29.1% above fair value, so there is no margin of safety.

Growth4/6

Revenue growing 10%+ a year
Revenue grew 38.9% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 52.5% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 23.4% over the last twelve months, against a 5-year average of 99.4% a year.
Growing faster than the industry
Revenue grew 58.4% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 5.0%.
Guidance raised
Palomar raised its full year 2026 adjusted net income outlook on Aug 4, 2026.
Gross margin trend
Banks and insurers do not report gross profit.

Past performance5/6

Return on equity over 15%
Return on equity was 23.3% over the last twelve months and averaged 17.4% over five years.
Return on assets over 1%
Return on assets was 6.1%; for a bank or insurer, 1% or more is considered good.
Return on equity above the industry
Palomar's return on equity of 23.3% is above the Fire, Marine, and Casualty Insurance median of 15.9%.
Earnings grew over 5 years
Net income grew 99.4% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 17.6% over the last twelve months, against a 5-year average of 19.8%.
Net margin above the industry
Palomar's net margin of 17.6% is above the Fire, Marine, and Casualty Insurance median of 12.0%.

Financial health0/6

Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest coverage
Interest expense is not reported separately.
Short-term liquidity
Insurers do not split assets into current and non-current.
Bankruptcy risk (Altman Z)
The Altman model does not apply to insurers.

Dividend1/6

Pays a dividend
Palomar paid dividends worth 0.3% of the share price over the last twelve months.
Yield below Treasuries
The 0.3% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; Palomar yields 0.3%.
Dividend stability
Fewer than five years of dividend history.
Earnings cover
Needs dividends paid and net income.
Cash-flow cover
Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$123.26

The share price is 29% above this estimate.

20%+ below

Near fair value

20%+ above

$159.16Price$123.26Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/E	18.0×	25.4×	10.4×	$143.28	50%
P/B	2.8×	3.9×	1.6×	$103.24	50%
Fair value				$123.26	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/E at month end
Own 5-year median 25.4
Fire, Marine, and Casualty Insurance median 10.4

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day: $42.57M
Value traded per 1% price move: $20.43M

Downside

Low risk

Typical loss in a bad month: 14.8%
Volatility (annualized): 36%
Sharpe ratio, 1 year: 0.52
Beta to the S&P 500 (5Y): 0.67

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2016 to 2025

Net margin

22.5%+18.8 pts over 5 years

Growth rates

Compound annual growth to fiscal 2025

Per year	1 year	3 years	5 years	10 years
Revenue	+58.2%	+38.9%	+39.1%	–
Net income	+67.6%	+55.7%	+99.4%	–
EPS, diluted	+60.0%	+52.5%	+97.3%	–
Free cash flow	+56.8%	+34.2%	+48.1%	–

Returns and balance sheet

10 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2016	FY2020	FY2025
Return on equity	–	2.1%	23.6%
Return on assets	–	1.1%	7.4%
Capex to revenue	–	0.1%	0.0%
Diluted shares	–	26M	27M

DuPont analysis

Return on equity split into margin, efficiency and leverage

Net margin22.5%

Asset turnover0.33×

Equity multiplier3.18×

Return on equity, FY202523.6%

Fiscal year	Net margin	Asset turnover	Equity multiplier	Return on equity
FY2025	22.5%	0.33×	3.18×	23.6%
FY2024	21.2%	0.28×	3.31×	19.6%
FY2023	21.1%	0.25×	3.52×	18.5%
FY2022	15.9%	0.29×	2.87×	13.4%
FY2021	18.5%	0.30×	2.18×	12.1%
FY2020	3.7%	0.30×	1.93×	2.1%
FY2019	9.4%	0.36×	1.99×	6.7%