NI Holdings (NasdaqCM:NODK) - Share price, News & Analysis

NODK fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

NODK Stock Overview

NI Holdings, Inc. underwrites property and casualty insurance products in the United States.

Rewards

Trading at 37.9% below our estimate of its fair value

Risk Analysis

Profit margins (0.2%) are lower than last year (16.2%)

NI Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NI Holdings
Historical stock prices
Current Share Price	US$17.17
52 Week High	US$21.11
52 Week Low	US$15.07
Beta	0.37
1 Month Change	3.50%
3 Month Change	-0.52%
1 Year Change	-14.62%
3 Year Change	-2.50%
5 Year Change	-3.97%
Change since IPO	16.41%

Shareholder Returns

	NODK	US Insurance	US Market
7D	7.3%	5.5%	6.6%
1Y	-14.6%	1.4%	-18.5%

Return vs Industry: NODK underperformed the US Insurance industry which returned -1% over the past year.

Return vs Market: NODK exceeded the US Market which returned -20.5% over the past year.

Price Volatility

Is NODK's price volatile compared to industry and market?
NODK volatility
NODK Average Weekly Movement	4.6%
Insurance Industry Average Movement	4.9%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: NODK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NODK's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1946	206	Jim Alexander	https://www.niholdingsinc.com

NI Holdings, Inc. underwrites property and casualty insurance products in the United States. The company’s products include private passenger auto, non-standard automobile, homeowners, farm owners, crop hail and multi-peril crop, and liability insurance policies. The company was founded in 1946 and is headquartered in Fargo, North Dakota.

NI Holdings Fundamentals Summary

How do NI Holdings's earnings and revenue compare to its market cap?
NODK fundamental statistics
Market Cap	US$364.61m
Earnings (TTM)	US$656.00k
Revenue (TTM)	US$319.32m

555.8x

P/E Ratio

1.1x

P/S Ratio

Is NODK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NODK income statement (TTM)
Revenue	US$319.32m
Cost of Revenue	US$318.07m
Gross Profit	US$1.24m
Other Expenses	US$585.00k
Earnings	US$656.00k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.031
Gross Margin	0.39%
Net Profit Margin	0.21%
Debt/Equity Ratio	0.0%

How did NODK perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is NODK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NODK?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NODK. This is calculated by dividing NODK's market cap by their current preferred multiple.
What is NODK's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$364.61m

NODK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	130.8x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does NODK's PB Ratio compare to its peers?

NODK PB Ratio vs Peers

The above table shows the PB ratio for NODK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	0.8x

Price-To-Book vs Peers: NODK is expensive based on its Price-To-Book Ratio (1.1x) compared to the peer average (0.8x).

Price to Earnings Ratio vs Industry

How does NODK's PE Ratio compare vs other companies in the U.S. Insurance Industry?

Price-To-Book vs Industry: NODK is expensive based on its Price-To-Book Ratio (1.1x) compared to the US Insurance industry average (1x)

Price to Book Ratio vs Fair Ratio

What is NODK's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NODK PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	1.1x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate NODK's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of NODK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NODK ($17.17) is trading below our estimate of fair value ($27.65)

Significantly Below Fair Value: NODK is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NODK's PEG Ratio to determine if it is good value.

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Future Growth

How is NI Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.8%

Forecasted Insurance industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NI Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine NI Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has NI Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NODK has high quality earnings.

Growing Profit Margin: NODK's current net profit margins (0.2%) are lower than last year (16.2%).

Past Earnings Growth Analysis

Earnings Trend: NODK's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: NODK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NODK had negative earnings growth (-98.8%) over the past year, making it difficult to compare to the Insurance industry average (-2.6%).

Return on Equity

High ROE: NODK's Return on Equity (0.2%) is considered low.

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Financial Health

How is NI Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NODK's short term assets ($131.2M) do not cover its short term liabilities ($278.3M).

Long Term Liabilities: NODK's short term assets ($131.2M) exceed its long term liabilities ($13.5M).

Debt to Equity History and Analysis

Debt Level: NODK is debt free.

Reducing Debt: NODK had no debt 5 years ago.

Debt Coverage: NODK has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NODK has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is NI Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NODK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NODK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NODK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NODK's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NODK has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure

CEO

Jim Alexander (55 yo)

5.25yrs

Tenure

US$2,270,551

Compensation

Mr. Michael James Alexander, also known as Jim, BA, MA, has been Chief Executive Officer & President at NI Holdings, Inc. since March 2017. Mr. Alexander has been Chief Executive Officer of Nodak Insurance...

CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD2.27M) is about average for companies of similar size in the US market ($USD2.71M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: NODK's management team is considered experienced (3.2 years average tenure).

Board Members

Experienced Board: NODK's board of directors are considered experienced (6.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31