Exzeo Group, Inc. (XZO)
Valuation Overview•Is Exzeo Group, Inc. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
High-quality fundamentals with a strong composite quality score of 92/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Elite compounder with fortress-level fundamentals across every core pillar.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
XZO exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is backed by a fortress balance sheet, holding significant net cash ($298M) and minimal debt risk.
The company is driving exceptional top-line expansion (61.3% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 37.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $55.5M | +62.0% | +61.3% | — | — | |
| EBITDA | $25.8M | — | — | — | — | |
| Net Income | $20.4M | +87.6% | — | — | — | |
| EPS (Diluted) | $0.22 | +135.1% | — | — | — | |
| Free Cash Flow | $25.1M | -48.3% | +50.0% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 49.2% | 39.2% | 29.9% | 29.9% |
| Operating Margin | 37.0% | 26.7% | 11.0% | 11.0% |
| Net Margin | 28.7% | 31.5% | 7.6% | 7.6% |
| FCF Margin | 25.2% | 83.1% | 89.7% | 89.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.20 | $0.22 | +10.0% | ||
| Q1'26 | $0.13 | $0.25 | +92.3% | ||
| Q4'25 | $0.24 | $0.25 | +4.2% |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Exzeo Group, Inc. (XZO) valuation, health, and returns.
Based on peer relative multiples, Exzeo Group, Inc. appears Fair versus peers compared to industry peers.
Exzeo Group, Inc. has multiple valuation anchors: Peer Relative Fair Value: $16.16. A convergence of these signals offers higher conviction.
Exzeo Group, Inc. displays excellent financial health with a composite quality score of 92/100, supported by a Altman Z-Score of 11.8 (safe zone), Piotroski F-Score of 7/9.
Exzeo Group, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Exzeo Group, Inc.'s current growth trajectory is Stable. The company achieved +62.0% 1Y revenue growth and +135.1% 1Y EPS growth, compared to its 3Y revenue CAGR of +61.3%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Exzeo Group, Inc. include: -28.3% 1-year max drawdown. Volatility risk is characterized by a beta of 1.00x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.