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1. Company Snapshot

1.a. Company Description

Doma Holdings Inc.originates, underwrites, and provides title, escrow, and settlement services to homeowners, lenders, title agents, and real estate professionals.It operates through two segments, Distribution and Underwriting.


The company also engages in title insurance underwriting business, including policies referred through its direct agents and third-party agents' channels; and provides services in the areas of purchase and refinance transactions in the residential real estate market.It operates its third-party title insurance agency business under the North American Title Company brand.The company was incorporated in 2016 and is headquartered in San Francisco, California.

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1.b. Last Insights on DOMA

Doma Holdings Inc.'s recent developments have been driven by its proposed sale to Title Resources Group, with shareholders expected to receive $6.29 in cash per share. This acquisition has been under investigation by Monteverde & Associates PC, a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. The company also recently reported its second quarter 2024 financial results, but details of the earnings release were not provided.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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DOMA Perpetual Sends Letter Calling for the Board of Directors of Pacira BioSciences, Inc. to Immediately Explore a Sale of the Business

Nov -11

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NicNames Partners with D3 to Become the First Registrar to Tokenize Traditional Internet Domains on Doma Protocol's Testnet

Sep -22

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Blend and Doma Expand Partnership to Bring AI-Powered Instant Title Decisioning to More Lenders

Jul -16

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DOMA Technologies, Livanta, and Advanta Government Services Rebrand as Commence

May -29

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DOMA Perpetual Sends Letter Urging Board of Directors of InMode Ltd. to Resume Share Repurchase Program

May -09

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DOMA Perpetual Supports Pacira's New $300 Million Share Repurchase Authorization as a Meaningful Step to Enhance Value for Shareholders

Apr -21

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Pacira BioSciences Confirms Receipt of Director Nominations from DOMA Perpetual

Mar -14

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DOMA Perpetual Nominates Three Highly Qualified Candidates for the Board of Pacira BioSciences

Mar -14

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.46%)

6. Segments

Underwriting

Expected Growth: 8.5%

Doma Holdings Inc.'s underwriting growth of 8.5% is driven by increasing demand for digital title insurance, expansion into new markets, and strategic partnerships. Additionally, the company's proprietary technology and data analytics capabilities enable efficient processing, reducing costs and increasing customer satisfaction, thereby fueling growth.

Corporate and Other Segment

Expected Growth: 7.5%

Doma Holdings Inc.'s Corporate and Other Segment growth of 7.5% is driven by increasing adoption of its title insurance and real estate settlement services, expansion into new markets, and strategic investments in digital transformation, resulting in operational efficiencies and cost savings.

Eliminations

Expected Growth: 0.0%

With 0.0% growth, Eliminations from Doma Holdings Inc. indicates a stagnant segment. This may be due to market saturation, intense competition, or a lack of innovation. The company's focus on cost-cutting measures and operational efficiency might be offset by declining revenue, resulting in no growth.

7. Detailed Products

Title Insurance

Doma Holdings Inc. offers title insurance products that provide protection to property owners and lenders from financial loss due to defects in title to a property.

Settlement Services

Doma Holdings Inc. provides settlement services that facilitate the closing process for real estate transactions, including document preparation, notarization, and recording.

Default Services

Doma Holdings Inc. offers default services that help lenders and servicers manage distressed properties, including foreclosure, REO, and loss mitigation.

Valuation Services

Doma Holdings Inc. provides valuation services that offer accurate and reliable property valuations, including appraisals, BPOs, and AVMs.

8. Doma Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Doma Holdings Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Doma Holdings Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are highly specialized, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Doma Holdings Inc. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate contracts mitigate this risk.

Threat Of New Entrants

The barriers to entry in Doma Holdings Inc.'s industry are relatively high, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with the company.

Intensity Of Rivalry

Doma Holdings Inc. operates in a highly competitive industry with several established players. The company must continually innovate and improve its products and services to maintain its market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 119.70%
Debt Cost 12.40%
Equity Weight -19.70%
Equity Cost 13.21%
WACC 12.25%
Leverage -607.66%

11. Quality Control: Doma Holdings Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Newmark

A-Score: 4.9/10

Value: 5.0

Growth: 4.0

Quality: 5.4

Yield: 2.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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RE/MAX

A-Score: 4.3/10

Value: 8.5

Growth: 3.2

Quality: 6.8

Yield: 2.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

Stock-Card
eXp World Holdings

A-Score: 4.1/10

Value: 5.1

Growth: 5.2

Quality: 4.5

Yield: 3.0

Momentum: 3.0

Volatility: 3.7

1-Year Total Return ->

Stock-Card
Doma

A-Score: 4.0/10

Value: 9.6

Growth: 3.3

Quality: 5.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

Stock-Card
J.W. Mays

A-Score: 4.0/10

Value: 3.8

Growth: 4.4

Quality: 2.7

Yield: 0.0

Momentum: 6.5

Volatility: 6.3

1-Year Total Return ->

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FRP Holdings

A-Score: 3.9/10

Value: 2.5

Growth: 4.0

Quality: 6.5

Yield: 0.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.28$

Current Price

6.28$

Potential

-0.00%

Expected Cash-Flows