Exzeo Group, Inc. Fundamental Analysis
Exzeo Group, Inc. (XZO) shows strong financial fundamentals with a PE ratio of 13.95, profit margin of 38.71%, and ROE of 42.07%. The company generates $0.2B in annual revenue with strong year-over-year growth of 61.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze XZO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentXZO demonstrates superior asset utilization.
Valuation Score
ExcellentXZO trades at attractive valuation levels.
Growth Score
ModerateXZO shows steady but slowing expansion.
Financial Health Score
ExcellentXZO maintains a strong and stable balance sheet.
Profitability Score
ExcellentXZO achieves industry-leading margins.
Key Financial Metrics
Is XZO Expensive or Cheap?
P/E Ratio
XZO trades at 13.95 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, XZO's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Exzeo Group, Inc. at 4.32 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.08 times EBITDA. This signals the market has high growth expectations.
How Well Does XZO Make Money?
Net Profit Margin
For every $100 in sales, Exzeo Group, Inc. keeps $38.71 as profit after all expenses.
Operating Margin
Core operations generate 48.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $42.07 in profit for every $100 of shareholder equity.
ROA
Exzeo Group, Inc. generates $22.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Exzeo Group, Inc. generates strong operating cash flow of $106.00M, reflecting robust business health.
Free Cash Flow
Exzeo Group, Inc. generates strong free cash flow of $103.60M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.14 in free cash annually.
FCF Yield
XZO converts 8.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.42
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
0.38
vs 25 benchmark
How XZO Stacks Against Its Sector Peers
| Metric | XZO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.95 | 19.38 | Better (Cheaper) |
| ROE | 42.07% | 804.00% | Weak |
| Net Margin | 38.71% | -7623.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 1.07 | Strong (Low Leverage) |
| Current Ratio | 2.65 | 609.22 | Strong Liquidity |
| ROA | 22.44% | -20946.00% (disorted) | Strong |
XZO outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Exzeo Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
319.05%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
765.03%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
229.61%
Industry Style: Value, Dividend, Cyclical
High Growth