NI Holdings, Inc. (NASDAQ: NODK)

Sector: Financial Services Industry: Insurance - Property & Casualty CIK: 0001681206
Market Cap 268.27 Mn
P/B 1.10
P/E 103.54
P/S 0.90
ROIC (Qtr) 1.62
Div Yield % 0.00
Rev 1y % (Qtr) -13.95
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

NI Holdings, Inc., also known as Nodak Insurance Company, is a company based in North Dakota that operates as a holding company for Nodak Insurance Company and its subsidiaries. It can be found on the NASDAQ stock exchange under the symbol NODK and is part of the property and casualty insurance industry. NI Holdings offers a variety of insurance products and services to individuals and businesses in the upper Midwest region of the United States. NI Holdings' main business activities revolve around writing private passenger auto, non-standard auto,...

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Investment thesis

Bull case

  • Retained earnings of 194.23M provide strong 1942.33x coverage of intangibles 100000, indicating quality earnings retention.
  • Retained earnings of 194.23M represent substantial 0.80x of equity 243.80M, indicating strong internal capital generation.
  • Strong tangible asset base of 543.72M provides 5437.15x coverage of intangibles 100000, indicating robust asset quality.
  • Cash position of 24.65M fully covers payables of 1.50M by 16.47x, showing strong vendor relationship management.
  • Tangible assets of 543.72M provide robust 4.65x coverage of receivables 116.88M, showing strong asset quality.

Bear case

  • Operating cash flow of (6.79M) provides insufficient coverage of deferred revenue obligations of 122.46M, which is -0.06x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (6.79M) shows concerning coverage of stock compensation expenses of 1.11M, with a -6.12 ratio indicating potential earnings quality issues.
  • Free cash flow of (7.13M) provides weak coverage of capital expenditures of 344000, with a -20.72 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (6.79M) provides minimal -3.74x coverage of tax expenses of 1.81M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of (6.79M) barely covers operating expenses of 2.63M with a -2.58 ratio, suggesting thin operational efficiency margins and limited flexibility.

Operating Activities Breakdown of Revenue (2022)

Segments Breakdown of Revenue (2022)

Peer comparison

Companies in the Insurance - Property & Casualty
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PGR Progressive Corp/Oh/ 121.46 Bn 30.80 3.11 6.90 Bn
2 CB Chubb Ltd 109.27 Bn 36.88 5.64 21.01 Bn
3 ALL Allstate Corp 69.21 Bn 29.01 1.62 8.09 Bn
4 TRV Travelers Companies, Inc. 67.61 Bn 10.75 1.38 9.27 Bn
5 HIG Hartford Insurance Group, Inc. 61.19 Bn 37.09 3.27 4.37 Bn
6 WRB Berkley W R Corp 38.52 Bn 124.63 8.69 2.87 Bn
7 CINF Cincinnati Financial Corp 26.91 Bn 74.14 6.73 0.88 Bn
8 MKL Markel Group Inc. 26.46 Bn 13.00 1.68 4.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.39 0.50
EV to Cash from Ops. EV/CFO -31.17 -16.03
EV to Debt EV to Debt 0.00 11.42
EV to EBIT EV/EBIT 48.01 22.13
EV to EBITDA EV/EBITDA 41.65 17.53
EV to Free Cash Flow [EV/FCF] EV/FCF -29.67 68.07
EV to Market Cap EV to Market Cap 0.79 0.91
EV to Revenue EV/Rev 0.71 2.31
Price to Book Value [P/B] P/B 1.10 2.97
Price to Earnings [P/E] P/E 103.54 29.62
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 7.41
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 19.66
Dividend per Basic Share Div per Share (Qtr) 0.00 1.49
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 37.69
Interest Coverage Interest Coverage 0.00 -9.19
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 20.19 -17.83
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -36.95 30.27
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 16.34
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 127.91 62.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -71.07 35.62
EBIT Growth (1y) % EBIT 1y % (Qtr) 148.82 56.25
EBT Growth (1y) % EBT 1y % (Qtr) 148.82 52.70
EPS Growth (1y) % EPS 1y % (Qtr) 128.89 48.20
FCF Growth (1y) % FCF 1y % (Qtr) -112.31 15.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -15.78 16.55
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.38
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.45
Cash Ratio Cash Ratio 0.00 0.02
Current Ratio Current Ratio 0.00 0.06
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.23
Interest Cover Ratio Interest Cover Ratio 0.00 -9.19
Times Interest Earned Times Interest Earned 0.00 -9.19
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.70 14.01
EBIT Margin % EBIT Margin % (Qtr) 1.48 13.05
EBT Margin % EBT Margin % (Qtr) 1.48 12.25
Gross Margin % Gross Margin % (Qtr) 34.80 40.49
Net Profit Margin % Net Margin % (Qtr) 0.90 9.63