Palomar HoldingsPLMR +4.78%81 3-Year ROIIC % is 9.52 as of Dec. 2025, which is 70% above its 10-year median of 5.61. GuruFocus rates PLMR with a GF Score™ of 81/100 and a GF Value™ of $150.69 (Fairly Valued). The stock has 3 warning signs investors should review. Among 332 Insurance companies, Palomar Holdings ranks better than 61.14% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Palomar Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 9.52%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Palomar Holdings's 3-Year ROIIC % or its related term are showing as below:
PLMR's 3-Year ROIIC % is ranked better than 61.14% of 332
companies
in the Insurance industry
Industry Median: 5.275
vs PLMR: 9.52
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Palomar Holdings 3-Year ROIIC % Related Terms
Palomar Holdings 3-Year ROIIC % Historical Data
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The historical data trend for Palomar Holdings's 3-Year ROIIC % 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.
PLMR vs SKWD, HCI, SLDE: 3-Year ROIIC % Comparison
For the Insurance - Property & Casualty subindustry, Palomar Holdings's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Palomar Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Palomar Holdings's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Palomar Holdings (PLMR) has a 3-Year ROIIC % of 9.52 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Palomar Holdings and its competitors. This is 70% above median its historical median of 5.61. Over the past decade, Palomar Holdings' 3-Year ROIIC % has ranged from 0.22 to 9.69. According to the industry distribution chart, Palomar Holdings ranks #129 out of 332 companies in the Insurance industry, placing it in the top 38.9%.
Is Palomar Holdings' 3-Year ROIIC % too high?
Palomar Holdings' current 3-Year ROIIC % of 9.52 is 70% above median its 10-year median of 5.61. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 9.69. The Insurance industry median 3-Year ROIIC % is 5.28. Palomar Holdings' value of 9.52 is 80.5% above this industry median. Based on the distribution chart, Palomar Holdings ranks #129 out of 332 companies in the Insurance industry, which is above the industry midpoint. Overall, Palomar Holdings has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Palomar Holdings' 3-Year ROIIC % compare to SKWD and HCI?
According to the Insurance industry distribution chart, Palomar Holdings ranks #129 out of 332 companies for 3-Year ROIIC %. This puts Palomar Holdings in the upper half of its industry. The industry median 3-Year ROIIC % is 5.28. Palomar Holdings' value of 9.52 is 80.5% above this benchmark. Historically, Palomar Holdings' own 3-Year ROIIC % has ranged from 0.22 to 9.69 over the past decade. While the company's 10-year median is 5.61 vs. the industry median of 5.28, 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 3-Year ROIIC % for an Insurance company?
The median 3-Year ROIIC % among Insurance companies is 5.28, based on 332 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palomar Holdings's current 3-Year ROIIC % of 9.52 is 80.5% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Palomar Holdings and its competitors. For the Insurance industry, the median 3-Year ROIIC % is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palomar Holdings's current 3-Year ROIIC % is 9.52, which is 70% above median its own 10-year median of 5.61. 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 Fairly Valued. The stock's GF Value™ is $150.69, compared to a current price of $140.00 — trading 7.1% below its estimated fair value. The current 3-Year ROIIC % is 9.52, which is 70% above median its 10-year median of 5.61 and 80.5% above the Insurance industry median of 5.28. Palomar Holdings' overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Palomar Holdings (PLMR), the current 3-Year ROIIC % is 9.52 as of Dec. 2025. 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 $140.00 is trading 7.1% below its estimated GF Value™ of $150.69.
GuruFocus considers Palomar Holdings to be Fairly Valued.
Key valuation signals for PLMR:
3-Year ROIIC %: 9.52 (70% above median its 10-year median of 5.61)
GF Value™: $150.69 vs. price of $140.00 (7.1% below fair value)
Industry Position: 80.5% above the Insurance median (#129 of 332)
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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