Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
NP· Technology
Neptune Insurance Holdings
Neptune Insurance Holdings boasts impressive margins, but its unsustainable valuation and management concerns overshadow its strong moat.
Buffett fit
Partial fit
Owner
100
Durability
65
Management
50
Price
0
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Neptune Insurance, I would focus on scaling its operations while maintaining the high margins of 65% gross and 56% .
The full reasoning comes with a free account.
While Neptune has been profitable in all of the last five years, the significant EPS decline of -112.66% raises concerns about future growth.
The full reasoning comes with a free account.
The management's approach to is questionable, as evidenced by a share count CAGR of 2.84% and a yield of only 0.13%.
The full reasoning comes with a free account.
With an yield of only 1.79%, the price of $30.24 does not present a .
The full reasoning comes with a free account.
Free account
Read the full Neptune Insurance Holdings analysis free
- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
3 full analyses a week · no card needed
For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 56.2% is in the top quintile for the technology sector, significantly above the 13.4% cutoff.
- 2 of 65.1% exceeds the sector's top-quintile cutoff of 60.9%.
- 3 of 56.0% is well above the sector's top-quintile cutoff of 18.0%.
- 4The company has been profitable in all of the last five years.
Concerns
5- 1 ratio of 111.4 indicates an unsustainable valuation, far exceeding typical multiples.
- 2Negative of -10.17% over the last five years suggests poor capital efficiency.
- 3Current ratio of 0.00 indicates severe liquidity issues, unable to cover short-term obligations.
- 4Share count CAGR of 2.84% suggests potential dilution of shareholder value.
Price history
$29.49-3.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Neptune Insurance operates as a managing general agent for flood insurance, utilizing AI and machine learning for underwriting and policy management. It generates revenue primarily through residential and commercial flood insurance, with TTM revenue at $159.55M. The company does not take balance sheet risk, which limits its operational exposure but also restricts its growth potential.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 21, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Technology
Free weekly email
Liked the read on NP? Get the next ones on Monday.
Every Monday: the stocks most of the seven investors newly agree on. One email, unsubscribe any time.
Research, not investment advice.
See the Buffett analysis of Neptune Insurance Holdings
The score, the checklist and the full reasoning open with a free account. You get 3 full analyses a week, and this stock is the first one. No card needed.
Create a free account3 full analyses a week · no card needed
Already have an account? Sign in