AMERICAN COASTAL INSURANCE C (ACIC) Stock Fundamental Analysis
NASDAQ:ACIC - Nasdaq - US9107101027 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ACIC. ACIC was compared to 143 industry peers in the Insurance industry. There are concerns on the financial health of ACIC while its profitability can be described as average. ACIC has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally ACIC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ACIC was profitable.
In the past year ACIC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ACIC reported negative net income in multiple years.
ACIC had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
ACIC's Return On Assets of 6.34% is amongst the best of the industry. ACIC outperforms 93.71% of its industry peers.
The Return On Equity of ACIC (28.16%) is better than 95.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.15%, ACIC belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 28.16% | ||
| ROIC | 8.15% |
ROA(3y)6.28%
ROA(5y)2.66%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ACIC's Profit Margin of 24.31% is amongst the best of the industry. ACIC outperforms 95.10% of its industry peers.
ACIC has a Operating Margin of 35.89%. This is amongst the best in the industry. ACIC outperforms 95.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.89% | ||
| PM (TTM) | 24.31% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ACIC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ACIC has been increased compared to 1 year ago.
ACIC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACIC has an improved debt to assets ratio.
2.2 Solvency
ACIC has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.03, ACIC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that ACIC is somewhat dependend on debt financing.
ACIC's Debt to Equity ratio of 0.57 is on the low side compared to the rest of the industry. ACIC is outperformed by 74.13% of its industry peers.
Although ACIC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | N/A |
ROIC/WACC0.95
WACC8.55%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ACIC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.28%.
The Revenue has grown by 12.19% in the past year. This is quite good.
Measured over the past years, ACIC shows a very negative growth in Revenue. The Revenue has been decreasing by -18.50% on average per year.
EPS 1Y (TTM)-21.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-16%
Revenue 1Y (TTM)12.19%
Revenue growth 3Y-22.39%
Revenue growth 5Y-18.5%
Sales Q2Q%-0.67%
3.2 Future
ACIC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.65% yearly.
ACIC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.02% yearly.
EPS Next Y-1.92%
EPS Next 2Y2.28%
EPS Next 3Y-0.65%
EPS Next 5YN/A
Revenue Next Year11.26%
Revenue Next 2Y10.99%
Revenue Next 3Y10.02%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.05, the valuation of ACIC can be described as very cheap.
Based on the Price/Earnings ratio, ACIC is valued a bit cheaper than 78.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, ACIC is valued rather cheaply.
ACIC is valuated cheaply with a Price/Forward Earnings ratio of 6.39.
Based on the Price/Forward Earnings ratio, ACIC is valued a bit cheaper than the industry average as 74.13% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ACIC to the average of the S&P500 Index (22.13), we can say ACIC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 6.39 |
4.2 Price Multiples
83.92% of the companies in the same industry are more expensive than ACIC, based on the Enterprise Value to EBITDA ratio.
ACIC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACIC is cheaper than 74.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.47 | ||
| EV/EBITDA | 4.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3Y-0.65%
5. Dividend
5.1 Amount
ACIC has a Yearly Dividend Yield of 4.58%, which is a nice return.
Compared to an average industry Dividend Yield of 3.10, ACIC pays a better dividend. On top of this ACIC pays more dividend than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ACIC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
5.2 History
On average, the dividend of ACIC grows each year by 16.09%, which is quite nice.
ACIC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
32.81% of the earnings are spent on dividend by ACIC. This is a low number and sustainable payout ratio.
DP32.81%
EPS Next 2Y2.28%
EPS Next 3Y-0.65%
10.43
-0.22 (-2.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners28.63%
Inst Owner ChangeN/A
Ins Owners18.75%
Ins Owner Change4.31%
Market Cap504.29M
Analysts82.86
Price Target15.3 (46.69%)
Short Float %3.19%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
Yearly Dividend0.51
Dividend Growth(5Y)16.09%
DP32.81%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.95%
Min EPS beat(2)2.94%
Max EPS beat(2)6.95%
EPS beat(4)4
Avg EPS beat(4)22.97%
Min EPS beat(4)2.94%
Max EPS beat(4)51.26%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-7.83%
Min Revenue beat(2)-10.32%
Max Revenue beat(2)-5.35%
Revenue beat(4)0
Avg Revenue beat(4)-9.73%
Min Revenue beat(4)-13.59%
Max Revenue beat(4)-5.35%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-6.25%
PT rev (3m)-6.25%
EPS NQ rev (1m)-5%
EPS NQ rev (3m)-15.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-9.07%
Revenue NQ rev (3m)-18.32%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 6.39 | ||
| P/S | 1.67 | ||
| P/FCF | 3.47 | ||
| P/OCF | 3.47 | ||
| P/B | 1.93 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 4.25 |
EPS(TTM)1.48
EY14.19%
EPS(NY)1.63
Fwd EY15.65%
FCF(TTM)3.01
FCFY28.82%
OCF(TTM)3.01
OCFY28.85%
SpS6.25
BVpS5.4
TBVpS4.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 28.16% | ||
| ROCE | 9.95% | ||
| ROIC | 8.15% | ||
| ROICexc | 9.62% | ||
| ROICexgc | 16.98% | ||
| OM | 35.89% | ||
| PM (TTM) | 24.31% | ||
| GM | N/A | ||
| FCFM | 48.09% |
ROA(3y)6.28%
ROA(5y)2.66%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 1.4% | ||
| Cap/Sales | 0.04% | ||
| Interest Coverage | 8.47 | ||
| Cash Conversion | 124.44% | ||
| Profit Quality | 197.84% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.55%
ROIC/WACC0.95
Cap/Depr(3y)4.99%
Cap/Depr(5y)31.61%
Cap/Sales(3y)0.24%
Cap/Sales(5y)0.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-16%
EPS Next Y-1.92%
EPS Next 2Y2.28%
EPS Next 3Y-0.65%
EPS Next 5YN/A
Revenue 1Y (TTM)12.19%
Revenue growth 3Y-22.39%
Revenue growth 5Y-18.5%
Sales Q2Q%-0.67%
Revenue Next Year11.26%
Revenue Next 2Y10.99%
Revenue Next 3Y10.02%
Revenue Next 5YN/A
EBIT growth 1Y8.06%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y156.29%
FCF growth 3YN/A
FCF growth 5Y13.88%
OCF growth 1Y156.74%
OCF growth 3YN/A
OCF growth 5Y10.32%