Bowhead Specialty Holdings Inc.

BOWdata completeness 100%4 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'realEstateImpairment'; no data for concept 'dividendsPaid'

The thesis, from the filings

Bowhead Specialty Holdings Inc. earns about 21% on invested capital, far above its ~9% cost of capital, but has diluted owners by 41% over 4 years — a real edge showing up in the numbers. The estimate methods put fair value between $9.63 and $507.71 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025
Revenue$187.6M1$283.4M2$425.7M2$551.6M2
Net income$11.3M3$25M4$38.2M4$53.8M4
Operating cash flow$181.6M5$236.2M6$294.3M6$331.6M6
Capital expenditure$3.97M7$3.82M8$3.11M8$5.57M8
Free cash flow (derived)$177.7M5$232.4M6$291.2M6$326M6
Total debt$09$146.4M9
Cash & equivalents$64.7M10$118.1M11$97.5M11$193.5M11
Diluted shares24.0M24.0M29.7M33.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$132.87
your share of equity
Profit it earned you last year
$15.94
Free cash flow it threw off
$96.64
Debt you’d be carrying
$43.41

10 shares is a claim on $132.87 of net worth that earned you $15.94 and generated $96.64 of cash last year, against $43.41 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
21% avg · 4y
FY22 FY23 34%FY24 14%FY25 14%

It earned about 21% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+41% shares · 4y

Share count is up 41% over 4 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 3 estimate methods that apply put fair value between $9.63 and $507.71 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$507.71
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$291.2M
DCF · Growth Exit 5Y
$278.79
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$291.2M
Earnings Power Value
$9.63
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$31.6M
  • growthAssumed0.0%
Graham Number
$22.12
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)9.02%
Terminal growth2.5%
At your growth, a share is worth $278.79
The three cases
Bear0.0%$123.09
Base20.0%$278.79
Bull20.0%$278.79

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-12-31 · accession 0002002473-25-000008 (Revenues)
  2. 10-K · period ending 2023-12-31 · accession 0001628280-26-011089 (Revenues)
  3. 10-K · period ending 2022-12-31 · accession 0002002473-25-000008 (NetIncomeLoss)
  4. 10-K · period ending 2023-12-31 · accession 0001628280-26-011089 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0002002473-25-000008 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-12-31 · accession 0001628280-26-011089 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2022-12-31 · accession 0002002473-25-000008 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 10-K · period ending 2023-12-31 · accession 0001628280-26-011089 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2024-12-31 · accession 0001628280-26-011089 (LongTermDebt)
  10. 10-K · period ending 2022-12-31 · accession 0002002473-25-000008 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2023-12-31 · accession 0001628280-26-011089 (CashAndCashEquivalentsAtCarryingValue)