Baldwin Insurance Group, Inc. (NASDAQ: BWIN)

Sector: Financial Services Industry: Insurance Brokers CIK: 0001781755
Market Cap 1.67 Bn
P/B 2.69
P/E -59.26
P/S 1.12
ROIC (Qtr) 2.93
Div Yield % 0.00
Rev 1y % (Qtr) 7.80
Total Debt (Qtr) 1.69 Bn
Debt/Equity (Qtr) 2.73

About

Baldwin Insurance Group, Inc., also known as BRP Group, is a prominent player in the insurance distribution industry, operating in the United States and internationally with the stock symbol BWIN. The company offers a diverse array of insurance products and services, catering to individuals, professionals, businesses, and specialty insurers. Its main business activities encompass commercial property and casualty insurance, employee benefits insurance, personal lines insurance, wealth management, and retirement services. BRP Group's revenue is primarily...

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Price action

Investment thesis

Bull case

  • Robust tangible asset base of 1.26B provides 8.61x coverage of working capital 146.48M, indicating strong operational backing.
  • Cash reserves of 89.72M provide solid 7.88x coverage of other non-current liabilities 11.39M, indicating strong liquidity.
  • Cash position of 89.72M represents healthy 0.61x of working capital 146.48M, demonstrating strong operational liquidity.
  • Cash position of 89.72M fully covers payables of 68.68M by 1.31x, showing strong vendor relationship management.

Bear case

  • Operating cash flow of (23.24M) barely covers its investment activities of (141.89M), with a coverage ratio of 0.16, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 89.72M provide limited coverage of acquisition spending of (99.06M), which is -0.91x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (23.24M) shows concerning coverage of stock compensation expenses of 70.51M, with a -0.33 ratio indicating potential earnings quality issues.
  • Free cash flow of (64.57M) provides weak coverage of capital expenditures of 41.33M, with a -1.56 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (23.24M) provides minimal -87.71x coverage of tax expenses of 265000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 0.85 0.83
EV to Cash from Ops. EV/CFO -139.02 26.54
EV to Debt EV to Debt 1.91 10.83
EV to EBIT EV/EBIT 34.37 15.57
EV to EBITDA EV/EBITDA 17.69 12.32
EV to Free Cash Flow [EV/FCF] EV/FCF -50.04 38.93
EV to Market Cap EV to Market Cap 1.94 -1,866.90
EV to Revenue EV/Rev 2.17 2.59
Price to Book Value [P/B] P/B 2.69 3.17
Price to Earnings [P/E] P/E -59.26 24.79
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) 0.77 -4.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -14.43 423.33
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -73.97 -3.76
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.10
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1.15 -9.09
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 10.53 -5.72
EBIT Growth (1y) % EBIT 1y % (Qtr) 4.74 8.13
EBT Growth (1y) % EBT 1y % (Qtr) 23.30 -4.46
EPS Growth (1y) % EPS 1y % (Qtr) 31.75 -68.33
FCF Growth (1y) % FCF 1y % (Qtr) -263.54 -67.66
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.64 52.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.39 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.16
Cash Ratio Cash Ratio (Qtr) 0.09 0.54
Current Ratio Curr Ratio (Qtr) 1.15 2.11
Debt to Equity Ratio Debt/Equity (Qtr) 2.73 0.93
Interest Cover Ratio Int Coverage (Qtr) 0.77 -4.53
Times Interest Earned Times Interest Earned (Qtr) 0.77 -4.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 14.10 6.16
EBIT Margin % EBIT Margin % (Qtr) 6.32 -108.04
EBT Margin % EBT Margin % (Qtr) -1.87 -14.94
Gross Margin % Gross Margin % (Qtr) 27.20 53.35
Net Profit Margin % Net Margin % (Qtr) -1.90 -17.46