Accelerant Holdings (NYSE: ARX)

Sector: Financial Services Industry: Insurance Brokers CIK: 0001997350
Market Cap 2.62 Bn
P/B 3.88
P/E 96.44
P/S 4.35
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 73.98
Total Debt (Qtr) 121.90 Mn
Debt/Equity (Qtr) 0.18

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 7.65B provides 62.73x coverage of total debt 121.90M, indicating robust asset backing and low credit risk.
  • Strong tangible asset base of 7.65B provides 36.04x coverage of intangibles 212.20M, indicating robust asset quality.
  • Cash position of 1.68B fully covers payables of 1.49B by 1.12x, showing strong vendor relationship management.
  • Tangible assets of 7.65B provide robust 8.29x coverage of receivables 922M, showing strong asset quality.

Bear case

  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 2.17B, which is 0x, raising concerns about future service delivery capabilities.
  • Deferred revenue of 2.17B represents 3.21x of shareholder equity 676.10M, indicating significant future service obligations relative to capital base.
  • Other current assets of 0 provide weak coverage of payables of 1.49B, which is 0x, suggesting potential working capital stress in near term.

Peer comparison

Companies in the Insurance Brokers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MMC Marsh & Mclennan Companies, Inc. 92.62 Bn 29.47 4.67 21.43 Bn
2 AON Aon plc 74.51 Bn 27.41 4.38 17.44 Bn
3 AJG Arthur J. Gallagher & Co. 55.76 Bn 51.09 5.25 13.69 Bn
4 BRO Brown & Brown, Inc. 22.82 Bn 108.30 13.93 7.97 Bn
5 WTW Willis Towers Watson Plc 22.12 Bn 46.77 5.80 5.91 Bn
6 ERIE Erie Indemnity Co 13.10 Bn 45.46 4.72 0.00 Bn
7 CRVL Corvel Corp 3.53 Bn 33.49 3.78 0.02 Bn
8 ARX Accelerant Holdings 2.62 Bn 96.44 4.35 0.12 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 0.83
EV to Cash from Ops. EV to Cash from Ops. 0.00 26.54
EV to Debt EV to Debt 0.00 10.83
EV to EBIT EV to EBIT 0.00 15.57
EV to EBITDA EV to EBITDA 0.00 12.32
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 38.93
EV to Market Cap EV to Market Cap 0.00 -1,866.90
EV to Revenue EV to Revenue 0.00 2.59
Price to Book Value [P/B] P/B 3.88 3.17
Price to Earnings [P/E] P/E 96.44 24.79
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.83
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 31.35
Dividend per Basic Share Div per Share (Qtr) 0.00 1.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 18.16
Interest Coverage Int. cover (Qtr) 0.00 -4.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 423.33
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 -3.76
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.10
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 -9.09
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -5.72
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 8.13
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 -4.46
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -68.33
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -67.66
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 52.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.16
Cash Ratio Cash Ratio 0.00 0.54
Current Ratio Current Ratio 0.00 2.11
Debt to Equity Ratio Debt/Equity (Qtr) 0.18 0.93
Interest Cover Ratio Int Coverage (Qtr) 0.00 -4.53
Times Interest Earned Times Interest Earned (Qtr) 0.00 -4.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 6.16
EBIT Margin % EBIT Margin % (Qtr) 0.00 -108.04
EBT Margin % EBT Margin % (Qtr) 0.00 -14.94
Gross Margin % Gross Margin % (Qtr) 0.00 53.35
Net Profit Margin % Net Margin % (Qtr) 0.00 -17.46