DB:KCH

Stock Analysis Report

Kinsale Capital Group

Executive Summary

Kinsale Capital Group, Inc. provides as a casualty and property insurance products in the United States.

Rewards

Earnings are forecast to grow 9.59% per year

Earnings grew by 41.5% over the past year

Risk Analysis

No risks detected for KCH from our risk checks.


Snowflake Analysis

Solid track record with moderate growth potential.


Similar Companies

Share Price & News

How has Kinsale Capital Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KCH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

KCH

0.9%

DE Insurance

0.3%

DE Market


1 Year Return

88.1%

KCH

26.9%

DE Insurance

13.8%

DE Market

Return vs Industry: KCH exceeded the German Insurance industry which returned 29.2% over the past year.

Return vs Market: KCH exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

KCHIndustryMarket
7 Day0.5%0.9%0.3%
30 Day10.7%1.4%1.3%
90 Day2.1%3.9%5.2%
1 Year88.9%88.1%32.5%26.9%17.4%13.8%
3 Year254.8%249.3%63.6%43.8%15.9%5.7%
5 Yearn/a98.0%58.5%27.9%10.6%

Price Volatility Vs. Market

How volatile is Kinsale Capital Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Kinsale Capital Group undervalued compared to its fair value and its price relative to the market?

47.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KCH (€94) is trading above our estimate of fair value (€65.92)

Significantly Below Fair Value: KCH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KCH is poor value based on its PE Ratio (45.2x) compared to the Insurance industry average (11.9x).

PE vs Market: KCH is poor value based on its PE Ratio (45.2x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: KCH is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: KCH is overvalued based on its PB Ratio (6x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Kinsale Capital Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KCH's forecast earnings growth (9.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: KCH's earnings (9.6% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: KCH's earnings are forecast to grow, but not significantly.

Revenue vs Market: KCH's revenue (21.7% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: KCH's revenue (21.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KCH's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has Kinsale Capital Group performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KCH has high quality earnings.

Growing Profit Margin: KCH's current net profit margins (17.8%) are higher than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: KCH's earnings have grown significantly by 25.4% per year over the past 5 years.

Accelerating Growth: KCH's earnings growth over the past year (41.5%) exceeds its 5-year average (25.4% per year).

Earnings vs Industry: KCH earnings growth over the past year (41.5%) exceeded the Insurance industry 7.8%.


Return on Equity

High ROE: KCH's Return on Equity (12.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kinsale Capital Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: KCH has a low level of unsold assets or inventory.

Debt Coverage by Assets: KCH's debt is covered by short term assets (assets are 16.9x debt).


Financial Institutions Analysis

Asset Level: KCH's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if KCH has a sufficient allowance for bad loans.

Low Risk Liabilities: KCH reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if KCH has an acceptable proportion of non-loan assets held.

Low Risk Deposits: KCH has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if KCH has an appropriate level of bad loans.


Next Steps

Dividend

What is Kinsale Capital Group's current dividend yield, its reliability and sustainability?

0.29%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: KCH's dividend (0.3%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: KCH's dividend (0.3%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: KCH is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: KCH is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: KCH is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KCH's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Kinsale Capital Group's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Michael Kehoe (53yo)

10.6yrs

Tenure

US$1,667,505

Compensation

Mr. Michael Patrick Kehoe Founded Kinsale Capital Group, Inc. in 2009 and has been its Chief Executive Officer and President since June 2009. Mr. Kehoe has been Chief Executive Officer, President and Direc ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.67M) is about average for companies of similar size in the German market ($USD1.50M).

Compensation vs Earnings: Michael's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.8yrs

Average Tenure

53yo

Average Age

Experienced Management: KCH's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

60yo

Average Age

Experienced Board: KCH's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: KCH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€227,22307 Nov 19
Steven Bensinger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,900
Max Price€78.35
Buy€180,63607 Nov 19
Anne Kronenberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,293
Max Price€78.78
Sell€62,60405 Jun 19
William Kenney
EntityIndividual
Shares815
Max Price€76.81
Sell€63,34804 Jun 19
Bryan Petrucelli
EntityIndividual
Role
Chief Financial Officer
Senior VP
Shares815
Max Price€77.73
Sell€83,65116 May 19
Robert Lippincott
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,111
Max Price€75.29
Sell€79,44013 May 19
Frederick Russell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,111
Max Price€71.50
Sell€365,94807 May 19
Frederick Russell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max Price€73.19

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Michael Kehoe (53yo)

    President

    • Tenure: 10.6yrs
    • Compensation: US$1.67m
  • Brian Haney (49yo)

    Senior VP & COO

    • Tenure: 4.8yrs
    • Compensation: US$688.02k
  • Bryan Petrucelli (53yo)

    Senior VP

    • Tenure: 4.8yrs
    • Compensation: US$688.02k
  • Ann Marson (61yo)

    Chief Claims Officer & Senior VP

    • Tenure: 10.4yrs
    • Compensation: US$672.84k
  • Ben Pully

    Senior Vice President

    • Tenure: 2.9yrs
  • Clay Rhoades

    Senior Vice President

    • Tenure: 2.9yrs
  • Amanda Viol

    Secretary

    • Diane Schnupp (53yo)

      Senior VP & Chief Information Officer

      • Tenure: 0.5yrs

    Board Members

    • Fred Russell (60yo)

      Independent Director

      • Tenure: 9.8yrs
      • Compensation: US$130.00k
    • Greg Share (45yo)

      Independent Director

      • Tenure: 2.4yrs
      • Compensation: US$130.00k
    • Steve Bensinger (64yo)

      Independent Director

      • Tenure: 4.5yrs
      • Compensation: US$130.00k
    • James Ritchie (64yo)

      Independent Director

      • Tenure: 7yrs
      • Compensation: US$145.00k
    • Anne Kronenberg (59yo)

      Independent Director

      • Tenure: 2.6yrs
      • Compensation: US$130.00k
    • Bob Lippincott (72yo)

      Chairman of the Board

      • Tenure: 4.7yrs
      • Compensation: US$150.00k
    • Michael Kehoe (53yo)

      President

      • Tenure: 10.6yrs
      • Compensation: US$1.67m

    Company Information

    Kinsale Capital Group, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Kinsale Capital Group, Inc.
    • Ticker: KCH
    • Exchange: DB
    • Founded: 2009
    • Industry: Property and Casualty Insurance
    • Sector: Insurance
    • Market Cap: US$2.473b
    • Listing Market Cap: US$2.243b
    • Shares outstanding: 22.16m
    • Website: https://www.kinsalecapitalgroup.com

    Number of Employees


    Location

    • Kinsale Capital Group, Inc.
    • 2221 Edward Holland Drive
    • Suite 600
    • Richmond
    • Virginia
    • 23230
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    KNSLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2016
    KCHDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2016

    Biography

    Kinsale Capital Group, Inc. provides as a casualty and property insurance products in the United States. Its commercial lines offerings include construction, small business, energy, excess and general casualty, life sciences, allied health, health care, commercial property, environmental, public entity, inland marine, and commercial insurance, as well as product, professional, and management liability insurance; and homeowners insurance. The company markets and sells insurance products through a network of independent insurance brokers. Kinsale Capital Group, Inc. was founded in 2009 and is headquartered in Richmond, Virginia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/26 22:29
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.