AMERICAN COASTAL INSURANCE C (ACIC) Stock Fundamental Analysis
NASDAQ:ACIC - Nasdaq - US9107101027 - Common Stock - Currency: USD
Overall ACIC gets a fundamental rating of 5 out of 10. We evaluated ACIC against 145 industry peers in the Insurance industry. While ACIC is still in line with the averages on profitability rating, there are concerns on its financial health. ACIC may be a bit undervalued, certainly considering the very reasonable score on growth ACIC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ACIC had positive earnings in the past year.
In the past year ACIC had a positive cash flow from operations.
In multiple years ACIC reported negative net income over the last 5 years.
ACIC had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
ACIC has a Return On Assets of 6.34%. This is amongst the best in the industry. ACIC outperforms 93.10% of its industry peers.
Looking at the Return On Equity, with a value of 28.16%, ACIC belongs to the top of the industry, outperforming 95.17% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.15%, ACIC belongs to the top of the industry, outperforming 92.41% 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
With an excellent Profit Margin value of 24.31%, ACIC belongs to the best of the industry, outperforming 95.17% of the companies in the same industry.
Looking at the Operating Margin, with a value of 35.89%, ACIC belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
| 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
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.
Compared to 5 years ago, ACIC has more shares outstanding
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.
Looking at the Debt to FCF ratio, with a value of 1.03, ACIC is in the better half of the industry, outperforming 64.83% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that ACIC is somewhat dependend on debt financing.
The Debt to Equity ratio of ACIC (0.57) is worse than 73.10% of its industry peers.
Even though the debt/equity ratio score it not favorable for ACIC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC8.63%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for ACIC have decreased strongly by -21.28% in the last year.
The Revenue has grown by 12.19% in the past year. This is quite good.
ACIC shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -18.50% yearly.
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
Based on estimates for the next years, ACIC will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.21% on average per year.
Based on estimates for the next years, ACIC will show a quite strong growth in Revenue. The Revenue will grow by 15.94% on average per year.
EPS Next Y60.19%
EPS Next 2Y21.29%
EPS Next 3Y16.21%
EPS Next 5YN/A
Revenue Next Year-9.23%
Revenue Next 2Y11.77%
Revenue Next 3Y15.94%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.30, which indicates a rather cheap valuation of ACIC.
ACIC's Price/Earnings ratio is a bit cheaper when compared to the industry. ACIC is cheaper than 77.93% of the companies in the same industry.
ACIC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
ACIC is valuated cheaply with a Price/Forward Earnings ratio of 4.71.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACIC indicates a rather cheap valuation: ACIC is cheaper than 80.69% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ACIC to the average of the S&P500 Index (36.44), we can say ACIC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 4.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACIC indicates a rather cheap valuation: ACIC is cheaper than 82.76% of the companies listed in the same industry.
ACIC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACIC is cheaper than 75.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.59 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
ACIC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ACIC's earnings are expected to grow with 16.21% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y21.29%
EPS Next 3Y16.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.63%, ACIC is a good candidate for dividend investing.
ACIC's Dividend Yield is a higher than the industry average which is at 3.48.
Compared to an average S&P500 Dividend Yield of 2.34, ACIC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
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 32.81% of its income as dividend. This is a sustainable payout ratio.
The dividend of ACIC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP32.81%
EPS Next 2Y21.29%
EPS Next 3Y16.21%
10.8
-0.1 (-0.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners28.39%
Inst Owner ChangeN/A
Ins Owners19.1%
Ins Owner Change3.14%
Market Cap522.18M
Analysts82.86
Price Target20.4 (88.89%)
Short Float %2.68%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
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)33.33%
PT rev (3m)25%
EPS NQ rev (1m)492.11%
EPS NQ rev (3m)462.5%
EPS NY rev (1m)63.33%
EPS NY rev (3m)63.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-19.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 4.71 | ||
| P/S | 1.73 | ||
| P/FCF | 3.59 | ||
| P/OCF | 3.59 | ||
| P/B | 2 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 4.31 |
EPS(TTM)1.48
EY13.7%
EPS(NY)2.3
Fwd EY21.25%
FCF(TTM)3.01
FCFY27.84%
OCF(TTM)3.01
OCFY27.86%
SpS6.25
BVpS5.4
TBVpS4.06
PEG (NY)0.12
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
WACC8.63%
ROIC/WACC0.94
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 Y60.19%
EPS Next 2Y21.29%
EPS Next 3Y16.21%
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 Year-9.23%
Revenue Next 2Y11.77%
Revenue Next 3Y15.94%
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%