Palomar HoldingsPLMR +3.32%81 ROE % is 18.07% as of Mar. 2026, which is 35% above its 10-year median of 13.40. GuruFocus rates PLMR with a GF Score™ of 81/100 and a GF Value™ of $149.85 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 504 Insurance companies, Palomar Holdings ranks better than 82.94% on this metric.
The historical rank and industry rank for Palomar Holdings's ROE % or its related term are showing as below:
PLMR'
s ROE % Range Over the Past 10 Years
Min: 2.15 Med: 13.4 Max: 23.58
Current: 22.31
During the past 10 years, Palomar Holdings's highest ROE % was 23.58%. The lowest was 2.15%. And the median was 13.40%.
PLMR's ROE % is ranked better than 82.94% of 504
companies
in the Insurance industry
Industry Median: 11.675
vs PLMR: 22.31
Palomar Holdings (NAS:PLMR) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Palomar Holdings ROE % Related Terms
Palomar Holdings ROE % Historical Data
* Premium members only.
The historical data trend for Palomar Holdings's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Property & Casualty subindustry, Palomar Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Palomar Holdings ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Palomar Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Palomar Holdings's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Palomar Holdings (PLMR) has a ROE % of 18.07% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Palomar Holdings and its competitors. This is 35% above median its historical median of 13.40. Over the past decade, Palomar Holdings' ROE % has ranged from 2.15 to 23.58. According to the industry distribution chart, Palomar Holdings ranks #86 out of 504 companies in the Insurance industry, placing it in the top 17.1%.
Is Palomar Holdings' ROE % too high?
Palomar Holdings' current ROE % of 18.07% is 35% above median its 10-year median of 13.40. Over the past 10 years, this metric has ranged from a low of 2.15 to a high of 23.58. The Insurance industry median ROE % is 11.68. Palomar Holdings' value of 18.07% is 54.8% above this industry median. Based on the distribution chart, Palomar Holdings ranks #86 out of 504 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Palomar Holdings has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Palomar Holdings' ROE % compare to SLDE and STC?
According to the Insurance industry distribution chart, Palomar Holdings ranks #86 out of 504 companies for ROE %. This places Palomar Holdings in the top 17% of its industry — outperforming the majority of peers. The industry median ROE % is 11.68. Palomar Holdings' value of 18.07% is 54.8% above this benchmark. Historically, Palomar Holdings' own ROE % has ranged from 2.15 to 23.58 over the past decade. While the company's 10-year median is 13.40 vs. the industry median of 11.68, Palomar Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.68, based on 504 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palomar Holdings's current ROE % of 18.07% is 54.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Palomar Holdings and its competitors. For the Insurance industry, the median ROE % is 11.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palomar Holdings's current ROE % is 18.07%, which is 35% above median its own 10-year median of 13.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palomar Holdings stock overvalued right now?
Based on GuruFocus' analysis, Palomar Holdings (PLMR) is currently considered Modestly Undervalued. The stock's GF Value™ is $149.85, compared to a current price of $119.94 — trading 20% below its estimated fair value. The current ROE % is 18.07%, which is 35% above median its 10-year median of 13.40 and 54.8% above the Insurance industry median of 11.68. Palomar Holdings' overall GF Score™ is 81/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Palomar Holdings (PLMR), the current ROE % is 18.07% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Palomar Holdings (PLMR) Overvalued in 2026?
Based on GuruFocus' analysis, Palomar Holdings stock appears to be undervalued.
The current stock price of $119.94 is trading 20% below its estimated GF Value™ of $149.85.
GuruFocus considers Palomar Holdings to be Modestly Undervalued.
Key valuation signals for PLMR:
ROE %: 18.07% (35% above median its 10-year median of 13.40)
GF Value™: $149.85 vs. price of $119.94 (20% below fair value)
Industry Position: 54.8% above the Insurance median (#86 of 504)
No single metric tells the full story. See the PLMR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palomar Holdings Inc that provides property and casualty insurance products to individuals and businesses. It provides insurance products serving five categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop. Company distribute products through multiple channels, including retail agents, program administrators, wholesale brokers, and partnerships with other insurance companies. The company's Earthquake product generate high premium.
81GF Score
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