Skyward is fairly valued with strong growth potential, but not a buy for the speaker due to lack of conviction.

captive segment saw a 16.6% 6% decline. And if you just pause the video and take a look at all of their different industries here, you can see the ones that they are accelerating and the ones that they are pulling back on.

So again, if a certain line of insurance is seeing weakness, then they can slow it down and accelerate the ones that are seeing strength and that lets them grow through market cycles.

So now, let's head back over to Stock Unlock, and I want to show you a couple of their KPIs here really quickly. And the first one is simply their long-term revenue growth. Since the fourth quarter of 2021, they have compounded their revenue by about 29.4% annually.

And you can clearly see that their revenue growth rates are actually accelerating and this is a clear outlier in the insurance industry right now.

This is the same story with Skyward's earnings. However, their earnings have been a little bit more volatile historically. But over the longer term, they have compounded by 42.4% 4% and in the most recent quarter, their earnings were still up 46% on a year-over-year basis, doing $188 million in earnings now and hitting an all-time high.

Let's now quickly take a look at their PE and they're currently sitting at a price to earnings ratio of about 13.6. They're clearly not as cheap as they were when I initially started covering the stock when they were around 10 times earnings, but if you take a look relative to their history, the stock is still on the lower end of its range.

If we also take a look at their forward price to earnings ratio, we can see that it is sitting at about 11 now, which is still well below the company's historical averages and median.

However, again, it's not as low as it was back in June when it was selling for only eight times forward earnings.

So, when it comes to Skyward, I think that it's huge valuation disconnect that it was seeing earlier on this year has largely corrected itself. However, I still think that this business is selling for a very fair price today, especially if it can continue to grow by double digits over the longer term, especially as we leave that cyclical down cycle in the insurance market.

This business has done an incredible job growing. Its management seems very conservative and it seems like a very well-run insurance company. So, this is one that I would definitely add to your watch list, but again, it's not one that I'm going to be adding to my portfolio because I've tried and tried.

I actually bought a small position and then I ended up selling it because it's just out of my circle of competence and I couldn't gain that deep level of conviction that I want in my portfolio.

But I still think that it is a very interesting business and that's why I want to continue covering it and putting it on your radar.