Palomar Holdings Inc. Common stock (PLMR)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, grow without heavy leverage, and sell at a sensible price. Palomar, a specialty P&C insurer, fits parts of that mold. Return on equity was 22.23% on FairStock's calculation, debt-to-equity was only 0.30, and the Piotroski F-score was 7/9. Growth has been real: in fiscal year 2023 revenue was $375.9M, net income $79.2M, and diluted EPS $3.13; in fiscal year 2024 revenue was $553.9M, net income $117.6M, and diluted EPS $4.48; in fiscal year 2025 revenue was $876.0M, net income $197.1M, and diluted EPS $7.17. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $314.4M and net income $52.6M, up from $203.3M and $46.5M in fiscal Q2 2025. That is strong top-line momentum, but in fiscal Q2 2026 versus fiscal Q2 2025, net income grew only about 13% while revenue grew about 55%, and the latest quarterly margin was 16.73%, so underwriting or expense pressure may be rising. The FairStock Lynch category is FAST GROWER, based on 99.4% annual profit growth over five years and 39.1% revenue growth; such rates rarely persist. The stock closed at $133.43 on 2026-10-13, with a FairStock P/E of 17.93, P/B of 3.56, and PEG of 1.38. A 3.56 times book price demands durable high ROE. I cannot see the combined ratio, CET1, or NIM in this data, and for an insurer the combined ratio is the key underwriting gauge. Palomar looks like a quality grower at a full but not absurd price; the margin trend and catastrophe exposure are what I would watch.

In plain English: Palomar writes specialty property and casualty insurance, such as earthquake, flood, and hurricane coverage, for people and businesses. The business looks strong: sales and profits have grown quickly, it earns a high return on shareholder money, and debt is modest. At the 2026-10-13 close of $133.43, the stock looks roughly fair rather than a bargain compared with its profits and net worth.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer