Kinsale Capital Group, Inc. (KNSL): A Bull Case Theory

We came across a bullish thesis on Kinsale Capital Group, Inc. (KNSL) on Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on KNSL. Kinsale Capital Group, Inc. (KNSL)’s share was trading at $416.48 as of Jan 10^th. KNSL’s trailing and forward P/E were 23.76 and 22.12 respectively according to Yahoo Finance.

A close-up of a hand signing a property casualty insurance product contract.

Kinsale Capital (KNSL) is a strong, high-growth company with a compelling investment thesis, despite recent concerns over a slight decline in revenue growth for Q3. Founded in 2009 by CEO Michael Kehoe, who remains with the company and holds significant equity, Kinsale has consistently delivered robust profitability, with a net income margin of 27.3%. In Q3, they reported a 46% increase in net income compared to the previous year, underpinned by an impressive combined ratio of 75.7% and a reduced expense ratio of 19.2%. While the company faced a slight revenue slowdown, its long-term potential remains intact, driven by a strong business model and operational efficiency. The company trades at a forward EV/Sales ratio of 5.6x and EV/EBIT ratio of 18.0x, reflecting its profitability and growth prospects. Kinsale’s strong fundamentals position it as a compelling addition to your portfolio for 2025.

Kinsale Capital Group, Inc. (KNSL) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held KNSL at the end of the third quarter which was 28 in the previous quarter. While we acknowledge the risk and potential of KNSL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KNSL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.