One-glance verdict
Undervalued
$165.74 our estimate vs market $40.75
Wall Street consensus: $49.09 (-70.4% lower than our fair-value estimate)
75% below our estimate, below the bear case
Fundamentals snapshot
Ryan Specialty Holdings, Inc.
RYAN · NYQ · Financial Services · Insurance Brokers
Current price
$40.75
52-week range
$29.28 - $58.94
Market cap
$10.44B
Balance sheet
Distressed
2.32x Stretched
Net debt $3.67B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 5.5% last year.
- Reward Returns 22.1% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 6/10 years.
- Risk Net debt grew 189.6% over 3 years.
What this company does
Ryan Specialty Holdings, Inc.
Think of Ryan Specialty as a problem-solver for the insurance world; they don't sell insurance directly to people, but instead help insurance agents find coverage for very unique or high-risk things, like a new type of satellite or a major concert. The company makes its money by charging fees for this expert matchmaking, connecting agents with the right insurance carriers (the companies that actually provide the coverage and pay claims) for these difficult cases. This makes them a go-to partner when standard insurance policies are not enough.
How the company got here
Ryan Specialty was started in 2010 by Patrick G. Ryan, the same person who founded and led the major insurance company Aon. He saw a need for a company that focused only on specialty insurance, which covers complex and hard-to-place risks that regular insurance companies often avoid. The company grew quickly by hiring experts, building strong relationships, and buying other companies that fit its strategy. A key moment was its 2020 purchase of All Risks, which significantly grew its wholesale brokerage business, and in 2021, it became a publicly traded company on the New York Stock Exchange.
What it actually does
Think of Ryan Specialty as a specialist for the insurance world. When a local insurance broker has a client with a very unusual or high-risk situation—like a new type of technology, a large construction project, or a business in a disaster-prone area—they go to Ryan Specialty for help. Ryan Specialty doesn't typically provide the insurance itself but acts as an expert middleman, connecting the local broker with insurance carriers that are willing to cover these unique risks. They provide the expertise, product development, and administrative services needed to create and manage these special insurance policies for businesses, organizations, and even governments.
Wholesale Brokerage
This is the company's largest business, making up a little more than half of its revenue. In this role, Ryan Specialty acts like a matchmaker for insurance. When a regular insurance agent has a client with a complex risk, they bring it to Ryan's experts, who then negotiate with specialized insurance carriers to create a custom policy. This segment, which mainly operates under the brand RT Specialty, gets paid through commissions and fees based on the insurance premiums (the price of the policy) being placed.
Underwriting Management
This is the second-largest part of the company, bringing in over a third of its revenue. Here, Ryan Specialty has been given the authority by insurance carriers to act on their behalf. This means they can underwrite (evaluate and take on the risk), design, and manage entire insurance programs for specific industries like renewable energy or life sciences. Instead of just connecting brokers and carriers, they are more deeply involved in creating and managing the insurance product itself, earning fees for these specialized services.
Binding Authority
This is the smallest of the three segments, contributing a little over ten percent of revenue. This business gives Ryan Specialty the power to 'bind' or issue an insurance policy immediately on behalf of an insurance carrier, up to a certain level of risk. This is for less complex specialty risks and allows local brokers to get coverage for their clients much more quickly. It combines the local knowledge of their agents with the power of a national company.
What management is betting on now
The company is focused on growing by acquiring other specialty insurance firms to add new capabilities and expand its market reach. They are also heavily investing in what they call 'delegated authority,' which includes their Underwriting Management and Binding Authority segments, an area that has nearly doubled in revenue over the past two years. To handle the complexity that comes with this growth, Ryan Specialty has launched a multi-year plan called 'Project Empower' to improve efficiency by using more technology and automation. Management also believes in returning value to shareholders (the owners of the company's stock) through dividends (a portion of profits paid out to investors) and share buybacks (when the company buys its own stock to reduce the number of shares available).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$93.84M
FY2024 Q4
$259.64M
FY2025 Q1
$-143.49M
FY2025 Q2
$353.58M
FY2025 Q3
$167.31M
FY2025 Q4
$263.25M
FY2026 Q1
$-167.41M
FY2026 Q2
$291.47M
Revenue
$916.65M
Net income
$42.31M
Diluted EPS
—
Operating cash flow
$293.03M
Free cash flow
$291.47M
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Sources
Revenue
$795.23M
Net income
$17.65M
Diluted EPS
—
Operating cash flow
$-167.41M
Free cash flow
$-167.41M
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Sources
Revenue
$751.21M
Net income
$7.98M
Diluted EPS
—
Operating cash flow
$263.25M
Free cash flow
$263.25M
Fetching…
Sources
Revenue
$754.58M
Net income
$31.09M
Diluted EPS
—
Operating cash flow
$169.66M
Free cash flow
$167.31M
Fetching…
Sources
Revenue
$855.17M
Net income
$51.98M
Diluted EPS
—
Operating cash flow
$353.58M
Free cash flow
$353.58M
Fetching…
Sources
Revenue
$690.17M
Net income
$-27.64M
Diluted EPS
—
Operating cash flow
$-142.82M
Free cash flow
$-143.49M
Fetching…
Sources
Revenue
$663.53M
Net income
$13.75M
Diluted EPS
—
Operating cash flow
$259.64M
Free cash flow
$259.64M
Fetching…
Sources
Revenue
$604.69M
Net income
$17.59M
Diluted EPS
—
Operating cash flow
$100.94M
Free cash flow
$93.84M
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Sources
Is it cheap or expensive?
Fair value $165.74 vs current price $40.75
Wall Street consensus is the average analyst price target: $49.09 (-70.4% lower than our fair-value estimate).
Our most-likely fair value is $165.74 a share — about 306.7% above today's price of $40.75, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $3.7B. Interest coverage 2.3x.
Net debt
$3.67B
Interest coverage
2.32x
Ryan Specialty Holdings, Inc.'s profit covers its interest bill about 2.3 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
RYAN
BASELINE
Ryan Specialty Holdings, Inc.
Total debt $3.81B Interest coverage 2.32x This is the baseline the peer rows are being compared against.
Total debt $8.07B Interest coverage 4.91x +112% vs RYAN Carries about 2.1x more debt cushion than RYAN.
Total debt $2.57B Interest coverage 0.67x -71% vs RYAN Carries about 3.5x less debt cushion than RYAN.
Total debt $372.84M Interest coverage 3.14x +35% vs RYAN Carries about 1.4x more debt cushion than RYAN.
What you should know
The case for and against RYAN
3 Rewards
1 Risk
Rewards
-
Revenue grew 5.5% last year.
-
Returns 22.1% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Net debt grew 189.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
57.39x
Forward P/E
16.72x
P/B
9.71x
P/S
3.30x
EV/EBITDA
10.06x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
41.5%
Operating margin
25.0%
Net margin
3.1%
ROE
22.1%
ROA
3.5%
Health
Liquidity and balance-sheet strength
Debt / equity
3.75x
Current ratio
1.00x
Quick ratio
0.13x
Total debt
$3.81B
Total cash
$140.12M
Growth
How the business has been compounding
Revenue TTM
$3.22B
Revenue 5Y CAGR
20.8%
EPS TTM
0.71
EPS 5Y CAGR
-3.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$558.52M
Free CF TTM
$640.65M
FCF margin
19.9%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
70.4%
Last ex-div date
2026-08-11