Investment Thesis
Slide Insurance exhibits exceptional profitability with 47.7% operating margins, 35.8% net margins, and outstanding free cash flow generation ($288.8M, 74.2% FCF margin). The fortress balance sheet with 0.03x leverage, $1.2B cash, and 51.1x interest coverage provides financial stability. However, net income flat growth despite 36.5% revenue growth signals potential margin compression or rising claims that require monitoring.
Strengths
- Exceptional operating profitability with 47.7% operating margins and 35.8% net margins combined with 36.5% YoY revenue growth
- Outstanding cash generation with $288.8M free cash flow (74.2% FCF margin) and minimal capital requirements ($679K CapEx)
- Fortress balance sheet with minimal leverage (0.03x D/E), $1.2B cash position, and exceptional interest coverage (51.1x)
Risks
- Net income stagnation (0.0% YoY) despite 36.5% revenue growth indicates potential margin compression, rising claims, or expense pressures
- Modest ROE of 12.5% questions capital efficiency and returns despite superior operating margins
- Elevated insider activity (41 Form 4 filings in 90 days) warrants monitoring for potential operational uncertainty or volatility
Key Metrics to Watch
- Combined ratio and loss ratios to assess underwriting profitability sustainability
- Operating margin trends and net income growth reacceleration
- Free cash flow consistency and capital deployment strategy moving forward
Financial Metrics
Revenue
389.3M
Net Income
139.5M
EPS (Diluted)
$1.02
Free Cash Flow
288.8M
Total Assets
2.9B
Cash
1.2B
Profitability Ratios
Gross Margin
N/A
Operating Margin
47.7%
Net Margin
35.8%
ROE
12.5%
ROA
4.8%
FCF Margin
74.2%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.03x
Debt/Assets
61.4%
Interest Coverage
51.14x
Long-term Debt
32.4M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T13:53:42.741445 |
Data as of: 2026-03-31 |
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