ATLANTIC AMERICAN CORP (AAME)

US0482091008 - Common Stock

2.8  +0.05 (+1.82%)

After market: 2.81 +0.01 (+0.36%)

Fundamental Rating

1

AAME gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 140 industry peers in the Insurance industry. AAME may be in some trouble as it scores bad on both profitability and health. AAME does not seem to be growing, but still is valued expensively.



2

1. Profitability

1.1 Basic Checks

AAME had positive earnings in the past year.
In the past year AAME had a positive cash flow from operations.
In multiple years AAME reported negative net income over the last 5 years.
Of the past 5 years AAME 4 years had a positive operating cash flow.

1.2 Ratios

AAME has a Return On Assets of 0.75%. This is comparable to the rest of the industry: AAME outperforms 40.29% of its industry peers.
The Return On Equity of AAME (2.74%) is worse than 66.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.58%, AAME is in line with its industry, outperforming 55.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AAME is below the industry average of 4.02%.
Industry RankSector Rank
ROA 0.75%
ROE 2.74%
ROIC 1.58%
ROA(3y)1.39%
ROA(5y)0.73%
ROE(3y)3.99%
ROE(5y)2.04%
ROIC(3y)1.9%
ROIC(5y)1.26%

1.3 Margins

Looking at the Profit Margin, with a value of 1.46%, AAME is doing worse than 66.91% of the companies in the same industry.
In the last couple of years the Profit Margin of AAME has declined.
AAME's Operating Margin of 3.76% is on the low side compared to the rest of the industry. AAME is outperformed by 64.75% of its industry peers.
In the last couple of years the Operating Margin of AAME has declined.
Industry RankSector Rank
OM 3.76%
PM (TTM) 1.46%
GM N/A
OM growth 3Y35.39%
OM growth 5Y-11.5%
PM growth 3YN/A
PM growth 5Y-23.7%
GM growth 3YN/A
GM growth 5YN/A

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AAME is destroying value.
AAME has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AAME remains at a similar level compared to 5 years ago.
The debt/assets ratio for AAME is higher compared to a year ago.

2.2 Solvency

The Debt to FCF ratio of AAME is 7.27, which is on the high side as it means it would take AAME, 7.27 years of fcf income to pay off all of its debts.
AAME's Debt to FCF ratio of 7.27 is on the low side compared to the rest of the industry. AAME is outperformed by 68.35% of its industry peers.
AAME has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
AAME has a Debt to Equity ratio (0.37) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 7.27
Altman-Z N/A
ROIC/WACC0.22
WACC7.01%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

1

3. Growth

3.1 Past

The earnings per share for AAME have decreased by 0.00% in the last year.
The earnings per share for AAME have been decreasing by -21.40% on average. This is quite bad
The Revenue has decreased by -3.68% in the past year.
AAME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.74% yearly.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5Y-21.4%
EPS growth Q2Q300%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y-1.76%
Revenue growth 5Y0.74%
Revenue growth Q2Q-3.78%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 21.54 indicates a rather expensive valuation of AAME.
Based on the Price/Earnings ratio, AAME is valued a bit more expensive than the industry average as 61.15% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of AAME to the average of the S&P500 Index (26.42), we can say AAME is valued inline with the index average.
Industry RankSector Rank
PE 21.54
Fwd PE N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AAME is valued a bit cheaper than the industry average as 65.47% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AAME is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 11.29
EV/EBITDA 9.09

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a yearly dividend of 0.74%, AAME is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.13, AAME is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, AAME's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.74%

5.2 History

AAME has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of AAME decreased in the last 3 years.
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years2

5.3 Sustainability

AAME pays out 30.00% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of AAME has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP30%
EPS Next 2YN/A
EPS Next 3YN/A

ATLANTIC AMERICAN CORP

NASDAQ:AAME (3/27/2024, 8:00:00 PM)

After market: 2.81 +0.01 (+0.36%)

2.8

+0.05 (+1.82%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap57.12M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.74%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 21.54
Fwd PE N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.75%
ROE 2.74%
ROCE
ROIC
ROICexc
ROICexgc
OM 3.76%
PM (TTM) 1.46%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio N/A
Quick Ratio N/A
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y-1.76%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y