IGIC

We rate International General Insurance Holdings Ltd. (IGIC) as a Hold with a composite score of 62.7/100 at a current price of $25.09. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in value (94th percentile) and quality (90th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (38th percentile) and investment (38th percentile) tempers our overall conviction. We assign a Narrow Moat rating (61/100), Low uncertainty, and Exemplary capital allocation.

Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

International General Insurance Holdings Ltd. holds an above-average position (#20 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 62.7/100 places it at rank #443 in our full 7,333-stock universe. At $1.2B in market capitalization, International General Insurance Holdings Ltd. is a small-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue is growing at 8%, though momentum at the 38th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.

The margin cascade tells an important story: gross margins of 60% (-16.6pp vs sector) narrow to operating margins of 25% (+7.5pp vs sector) and net margins of 25.1%, yielding a gross-to-net conversion rate of 42%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.

At a current price of $25.09, International General Insurance Holdings Ltd. appears undervalued relative to its fundamentals. Our value factor score of 94/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.

The stock currently trades at a P/E of 8.3x (a 30% discount to the sector median of 11.9x), EV/EBITDA of 1.7x (discounted to peers), P/B of 1.7x, P/S of 0.5x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Low uncertainty rating to International General Insurance Holdings Ltd.. The company exhibits strong financial stability with a beta of 0.64, conservative leverage (0% D/E), and a stability factor in the 54th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.

Specific risk factors that inform our assessment include: low beta of 0.64 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 54th percentile and quality factor at the 90th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 60% provide a buffer against cost pressures; conservative leverage (0% D/E) limits balance sheet risk; a 2.42% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate International General Insurance Holdings Ltd.'s capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 82.6%, disciplined leverage (0% D/E), a 2.42% dividend yield. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — International General Insurance Holdings Ltd. meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. The company returns capital via a 2.42% dividend yield, and the combination of 26.5% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, International General Insurance Holdings Ltd. receives a Hold rating with a composite score of 62.7/100 (rank #443 of 7,333). Our quantitative framework assigns a Narrow Moat (61/100, trend: stable), Low uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 63/100.

Our analysis supports a neutral stance on International General Insurance Holdings Ltd.. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.