AMERICAN COASTAL INSURANCE C (ACIC) Stock Fundamental Analysis
NASDAQ:ACIC - Nasdaq - US9107101027 - Common Stock - Currency: USD
ACIC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. ACIC has a medium profitability rating, but doesn't score so well on its financial health evaluation. ACIC is cheap, 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 has a better Return On Assets (6.23%) than 90.91% of its industry peers.
The Return On Equity of ACIC (32.13%) is better than 95.80% of its industry peers.
ACIC has a Return On Invested Capital of 8.26%. This is amongst the best in the industry. ACIC outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 32.13% | ||
| ROIC | 8.26% |
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
With an excellent Profit Margin value of 24.97%, ACIC belongs to the best of the industry, outperforming 91.61% of the companies in the same industry.
ACIC's Operating Margin of 37.48% is amongst the best of the industry. ACIC outperforms 96.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.48% | ||
| PM (TTM) | 24.97% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACIC is destroying value.
The number of shares outstanding for ACIC has been increased compared to 1 year ago.
The number of shares outstanding for ACIC has been increased compared to 5 years ago.
The debt/assets ratio for ACIC has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ACIC is 0.61, which is an excellent value as it means it would take ACIC, only 0.61 years of fcf income to pay off all of its debts.
ACIC's Debt to FCF ratio of 0.61 is fine compared to the rest of the industry. ACIC outperforms 74.13% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that ACIC is somewhat dependend on debt financing.
ACIC has a Debt to Equity ratio of 0.63. This is in the lower half of the industry: ACIC underperforms 74.83% 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 | 0.63 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | N/A |
ROIC/WACC0.98
WACC8.45%
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 -25.36%.
The Revenue has been growing slightly by 5.85% in the past year.
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)-25.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-69.23%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y-22.39%
Revenue growth 5Y-18.5%
Sales Q2Q%32.22%
3.2 Future
The Earnings Per Share is expected to grow by 2.28% on average over the next years.
ACIC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.15% yearly.
EPS Next Y-1.92%
EPS Next 2Y2.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.42%
Revenue Next 2Y10.15%
Revenue Next 3YN/A
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
Based on the Price/Earnings ratio of 7.33, the valuation of ACIC can be described as very cheap.
ACIC's Price/Earnings ratio is a bit cheaper when compared to the industry. ACIC is cheaper than 78.32% of the companies in the same industry.
ACIC is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.47 indicates a rather cheap valuation of ACIC.
74.83% of the companies in the same industry are more expensive than ACIC, based on the Price/Forward Earnings ratio.
ACIC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.33 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACIC is valued cheaper than 81.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACIC is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.27 | ||
| EV/EBITDA | 4.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ACIC has a Yearly Dividend Yield of 4.47%, which is a nice return.
ACIC's Dividend Yield is rather good when compared to the industry average which is at 3.22. ACIC pays more dividend than 83.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, ACIC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
On average, the dividend of ACIC grows each year by 16.09%, which is quite nice.
ACIC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)16.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ACIC pays out 31.83% of its income as dividend. This is a sustainable payout ratio.
ACIC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.83%
EPS Next 2Y2.28%
EPS Next 3YN/A
11.43
-0.16 (-1.38%)
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 Change0.58%
Market Cap552.18M
Analysts82.86
Price Target16.32 (42.78%)
Short Float %3.39%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend0.51
Dividend Growth(5Y)16.09%
DP31.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.11%
Min EPS beat(2)6.95%
Max EPS beat(2)51.26%
EPS beat(4)4
Avg EPS beat(4)46.25%
Min EPS beat(4)6.95%
Max EPS beat(4)96.08%
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)-9.47%
Min Revenue beat(2)-13.59%
Max Revenue beat(2)-5.35%
Revenue beat(4)1
Avg Revenue beat(4)-5.16%
Min Revenue beat(4)-13.59%
Max Revenue beat(4)7.96%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)-11.11%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.33 | ||
| Fwd PE | 7.47 | ||
| P/S | 1.82 | ||
| P/FCF | 2.27 | ||
| P/OCF | 2.27 | ||
| P/B | 2.34 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 4.6 |
EPS(TTM)1.56
EY13.65%
EPS(NY)1.53
Fwd EY13.39%
FCF(TTM)5.04
FCFY44.1%
OCF(TTM)5.04
OCFY44.1%
SpS6.28
BVpS4.88
TBVpS3.52
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 32.13% | ||
| ROCE | 10.09% | ||
| ROIC | 8.26% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 19.28% | ||
| OM | 37.48% | ||
| PM (TTM) | 24.97% | ||
| GM | N/A | ||
| FCFM | 80.29% |
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-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 0.25% | ||
| Cap/Sales | 0.01% | ||
| Interest Coverage | 8.87 | ||
| Cash Conversion | 198.74% | ||
| Profit Quality | 321.57% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.45%
ROIC/WACC0.98
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)-25.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-69.23%
EPS Next Y-1.92%
EPS Next 2Y2.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.85%
Revenue growth 3Y-22.39%
Revenue growth 5Y-18.5%
Sales Q2Q%32.22%
Revenue Next Year12.42%
Revenue Next 2Y10.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y10.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y278.77%
FCF growth 3YN/A
FCF growth 5Y13.88%
OCF growth 1Y279.05%
OCF growth 3YN/A
OCF growth 5Y10.32%