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Ambac Financial Group

DB:FGPN
Snowflake Description

Overvalued with worrying balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FGPN
DB
$790M
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

Ambac Financial Group, Inc., a financial services holding company, provides financial guarantees to public and private sector clients in the United States, the United Kingdom, Italy, Austria, Australia, France, and Internationally. The last earnings update was 69 days ago. More info.


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FGPN Share Price and Events
7 Day Returns
-1.9%
DB:FGPN
-0.5%
DE Insurance
-0.3%
DE Market
1 Year Returns
-11.4%
DB:FGPN
20.9%
DE Insurance
-6.7%
DE Market
FGPN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ambac Financial Group (FGPN) -1.9% 15.3% -4.6% -11.4% -5.1% -12.7%
DE Insurance -0.5% 3.9% 3.4% 20.9% 61.4% 63.4%
DE Market -0.3% 2.3% -2% -6.7% 11.3% 12.2%
1 Year Return vs Industry and Market
  • FGPN underperformed the Insurance industry which returned 20.9% over the past year.
  • FGPN underperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
FGPN
Industry
5yr Volatility vs Market

Value

 Is Ambac Financial Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ambac Financial Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ambac Financial Group.

DB:FGPN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $33.79 * 3.8%
$1.30
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $33.79
Discount Rate (Cost of Equity) See below 12.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:FGPN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.686 (1 + (1- 21%) (1335.48%))
5.637
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (2 * 5.96%)
12.15%

Discounted Cash Flow Calculation for DB:FGPN using Excess Returns Model Model

The calculations below outline how an intrinsic value for Ambac Financial Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:FGPN Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (3.8% – 12.15%) * $33.79)
$-2.81
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-2.81 / (12.15% - 0.23%)
$-23.57
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $33.79 + $-23.57
$10.22
DB:FGPN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:FGPN represents 0.88761x of NasdaqGS:AMBC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88761x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 10.22 x 0.88761
€9.07
Value per share (EUR) From above. €9.07
Current discount Discount to share price of €15.40
= -1 x (€15.40 - €9.07) / €9.07
-69.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Ambac Financial Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ambac Financial Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ambac Financial Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:FGPN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-3.57
NasdaqGS:AMBC Share Price ** NasdaqGS (2019-07-17) in USD $17.35
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.58x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 20.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ambac Financial Group.

DB:FGPN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AMBC Share Price ÷ EPS (both in USD)

= 17.35 ÷ -3.57

-4.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ambac Financial Group is loss making, we can't compare its value to the DE Insurance industry average.
  • Ambac Financial Group is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Ambac Financial Group's expected growth come at a high price?
Raw Data
DB:FGPN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -4.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
53.3%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.11x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Ambac Financial Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ambac Financial Group's assets?
Raw Data
DB:FGPN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $35.63
NasdaqGS:AMBC Share Price * NasdaqGS (2019-07-17) in USD $17.35
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.08x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.75x
DB:FGPN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AMBC Share Price ÷ Book Value per Share (both in USD)

= 17.35 ÷ 35.63

0.49x

* Primary Listing of Ambac Financial Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ambac Financial Group is good value based on assets compared to the DE Insurance industry average.
X
Value checks
We assess Ambac Financial Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Ambac Financial Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ambac Financial Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
53.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ambac Financial Group expected to grow at an attractive rate?
  • Unable to compare Ambac Financial Group's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Ambac Financial Group's earnings growth to the Germany market average as it is expected to be loss making during the next 1-3 years.
  • Ambac Financial Group's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:FGPN Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:FGPN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 53.3%
DB:FGPN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts -18.6%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:FGPN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:FGPN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 305 -59 2
2019-12-31 325 -151 2
DB:FGPN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 445 -447 -163
2018-12-31 508 -1,543 186
2018-09-30 627 -1,394 187
2018-06-30 626 -1,367 100
2018-03-31 613 -1,408 102
2017-12-31 570 -221 -329
2017-09-30 550 -227 -404
2017-06-30 577 -196 -112
2017-03-31 576 11 -60
2016-12-31 552 830 75
2016-09-30 542 835 557
2016-06-30 532 927 64

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ambac Financial Group is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Ambac Financial Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:FGPN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Ambac Financial Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FGPN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 -1.32 0.41 -3.04 2.00
2019-12-31 -3.26 -3.23 -3.29 2.00
DB:FGPN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -3.57
2018-12-31 4.07
2018-09-30 4.10
2018-06-30 2.19
2018-03-31 2.26
2017-12-31 -7.25
2017-09-30 -8.91
2017-06-30 -2.46
2017-03-31 -1.33
2016-12-31 1.66
2016-09-30 12.31
2016-06-30 1.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ambac Financial Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ambac Financial Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ambac Financial Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ambac Financial Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ambac Financial Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ambac Financial Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Ambac Financial Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Ambac Financial Group's 1-year growth to the DE Insurance industry average as it is not currently profitable.
Earnings and Revenue History
Ambac Financial Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ambac Financial Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FGPN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 444.87 -163.19 100.69
2018-12-31 508.15 185.71 112.20
2018-09-30 627.06 186.69 119.80
2018-06-30 626.43 99.63 125.51
2018-03-31 612.97 102.43 130.75
2017-12-31 569.73 -328.72 122.44
2017-09-30 549.51 -403.93 129.69
2017-06-30 576.92 -111.55 117.08
2017-03-31 576.43 -60.01 113.78
2016-12-31 552.01 74.84 114.29
2016-09-30 541.85 556.52 104.77
2016-06-30 532.02 64.06 108.31
2016-03-31 584.30 288.11 106.19
2015-12-31 687.80 493.40 102.70
2015-09-30 662.30 560.00 101.60
2015-06-30 685.12 1,033.44 101.60
2015-03-31 597.85 542.84 98.72
2014-12-31 580.41 484.07 101.47
2014-09-30 579.94 99.05 101.20
2014-06-30 568.37 247.58 100.50
2014-03-31 1,019.07 3,727.91 131.00
2013-12-31 1,129.87 3,854.27 105.10
2013-09-30 1,183.36 3,929.28 105.45
2013-06-30 1,254.64 3,855.85 107.30
2013-03-31 944.04 -227.70 108.90
2012-12-31 867.76 -256.68 108.90
2012-09-30 969.57 -1,363.47 81.14

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Ambac Financial Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Ambac Financial Group used its assets less efficiently than the DE Insurance industry average last year based on Return on Assets.
  • It is difficult to establish if Ambac Financial Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Ambac Financial Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ambac Financial Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ambac Financial Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ambac Financial Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ambac Financial Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Ambac Financial Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ambac Financial Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ambac Financial Group Company Filings, last reported 3 months ago.

DB:FGPN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,665.89 10,533.85 1,003.29
2018-12-31 1,633.15 9,981.45 903.94
2018-09-30 1,798.81 10,240.53 1,037.60
2018-06-30 2,063.92 16,309.68 493.83
2018-03-31 2,109.17 17,453.88 419.80
2017-12-31 1,645.26 15,438.37 1,621.11
2017-09-30 1,772.14 15,388.58 898.59
2017-06-30 1,938.21 15,037.45 634.18
2017-03-31 1,888.92 14,872.99 540.22
2016-12-31 1,978.02 14,652.88 599.02
2016-09-30 2,176.37 15,763.71 255.32
2016-06-30 2,062.84 15,099.46 463.62
2016-03-31 2,011.63 15,623.74 563.46
2015-12-31 1,958.35 15,736.99 346.42
2015-09-30 1,629.04 16,323.62 481.62
2015-06-30 2,047.21 16,899.27 311.42
2015-03-31 1,837.72 16,772.02 361.24
2014-12-31 1,673.74 16,317.34 540.94
2014-09-30 1,250.69 16,528.14 683.39
2014-06-30 1,223.53 17,524.25 508.01
2014-03-31 1,228.81 16,822.33 328.28
2013-12-31 978.42 16,895.18 423.86
2013-09-30 886.75 18,379.27 660.74
2013-06-30 562.07 17,337.00 720.02
2013-03-31 -2,870.07 18,612.66 933.88
2012-12-31 -3,246.97 19,731.24 830.35
2012-09-30 -3,487.51 18,950.05 901.00
  • Ambac Financial Group's level of debt (632.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (1369.7% vs 632.3% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Ambac Financial Group is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Ambac Financial Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ambac Financial Group has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ambac Financial Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Ambac Financial Group dividends.
If you bought €2,000 of Ambac Financial Group shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Ambac Financial Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ambac Financial Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:FGPN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:FGPN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Ambac Financial Group has not reported any payouts.
  • Unable to verify if Ambac Financial Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ambac Financial Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ambac Financial Group has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Ambac Financial Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ambac Financial Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ambac Financial Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ambac Financial Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Claude LeBlanc
COMPENSATION $6,203,007
AGE 54
TENURE AS CEO 2.5 years
CEO Bio

Mr. Claude L. LeBlanc has been Chief Executive Officer, President and Director of Ambac Financial Group, Inc. and Ambac Assurance Corporation since January 1, 2017. Mr. LeBlanc has been Chief Financial Officer and Chief Restructuring Officer of Syncora Guarantee Inc. since January 2010. Mr. LeBlanc served as Chief Financial Officer and Chief Restructuring Officer at Syncora Holdings Ltd. until December 24, 2016. He served as Special Adviser of Syncora Holdings Ltd. (formerly, Security Capital Assurance Ltd.) since August 18, 2008. He served as Executive Vice President of Corporate Development and Head of Corporate Strategy for Syncora Holdings Ltd., from November 16, 2006 to August 15, 2008. He was responsible for corporate development activities and strategy, as well as capital management and pricing model development and lead credit rating agency relationships of Security Capital Assurance Ltd. He joined Syncora on November 16, 2006 from XL Capital Ltd., where he served as Senior Vice President of Corporate Development and as a Member of the Executive Management Group, where he oversaw global corporate development activities, capital planning and management and its global rating agency relationships. Prior to joining XL Capital in 2002, he served as Chief Operating Officer and a Member of the executive management team for Transworld Network International, where he led corporate development, financial planning and certain business operations. Mr. LeBlanc also spent nine years with PricewaterhouseCoopers LLP (formerly, Coopers & Lybrand) in the Corporate Finance group, advising on mergers and acquisitions, due diligence, financing and transaction structuring in Toronto, New York and Bermuda and served as its Vice President of Financial Advisory Services since 1997. He is a Chartered Accountant and Certified Public Accountant. Mr. LeBlanc holds a BA in Economics from York University, a BComm from the University of Windsor and an MBA from the Schulich School of Business.

CEO Compensation
  • Claude's compensation has increased whilst company is loss making.
  • Claude's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Ambac Financial Group management team in years:

6.5
Average Tenure
52
Average Age
  • The average tenure for the Ambac Financial Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Claude LeBlanc

TITLE
President
COMPENSATION
$6M
AGE
54
TENURE
2.5 yrs

David Trick

TITLE
Executive VP
COMPENSATION
$2M
AGE
47
TENURE
9.5 yrs

Stephen Ksenak

TITLE
Senior MD & General Counsel
COMPENSATION
$2M
AGE
53
TENURE
8 yrs

R. Smith

TITLE
Senior MD & Chief of Staff
COMPENSATION
$1M
AGE
48
TENURE
2.2 yrs

David Barranco

TITLE
Senior MD & Head of Risk Management
COMPENSATION
$1M
AGE
48
TENURE
7.4 yrs

Robert Donovan

TITLE
Chief Investment Officer
TENURE
5.5 yrs

Robert Eisman

TITLE
Senior MD
COMPENSATION
$1M
AGE
52
TENURE
9.7 yrs

Michael Reilly

TITLE
Senior MD
AGE
62

Lisa Kampf

TITLE
Managing Director of Investor Relations
TENURE
2.2 yrs

Patrick McCormick

TITLE
Managing Director
Board of Directors Tenure

Average tenure and age of the Ambac Financial Group board of directors in years:

3.3
Average Tenure
60
Average Age
  • The tenure for the Ambac Financial Group board of directors is about average.
Board of Directors

Jeffrey Stein

TITLE
Chairman of the Board
COMPENSATION
$447K
AGE
50
TENURE
4.5 yrs

Claude LeBlanc

TITLE
President
COMPENSATION
$6M
AGE
54
TENURE
2.5 yrs

Alex Greene

TITLE
Director
COMPENSATION
$337K
AGE
60
TENURE
4.3 yrs

Jim Prieur

TITLE
Director
COMPENSATION
$347K
AGE
68
TENURE
3.5 yrs

David Herzog

TITLE
Director
COMPENSATION
$363K
AGE
60
TENURE
3.3 yrs

Ian Haft

TITLE
Director
COMPENSATION
$343K
AGE
48
TENURE
3.3 yrs

Joan Lamm-Tennant

TITLE
Independent Director
COMPENSATION
$327K
AGE
66
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Ambac Financial Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. Jun 19 Buy Claude LeBlanc Individual 06. Jun 19 06. Jun 19 1,000 €13.14 €13,141
03. Jun 19 Buy Claude LeBlanc Individual 31. May 19 31. May 19 2,000 €13.45 €26,895
03. Jun 19 Buy R. Smith Individual 31. May 19 31. May 19 1,330 €13.47 €17,921
03. Jun 19 Buy David Trick Individual 31. May 19 31. May 19 2,000 €13.60 €27,200
31. May 19 Buy Robert Eisman Individual 30. May 19 30. May 19 2,000 €13.70 €27,329
30. May 19 Buy Jeffrey Stein Individual 29. May 19 29. May 19 3,000 €13.86 €41,569
23. May 19 Buy Claude LeBlanc Individual 23. May 19 23. May 19 2,000 €14.28 €28,566
17. May 19 Buy Claude LeBlanc Individual 17. May 19 17. May 19 3,500 €14.78 €51,690
14. May 19 Buy Stephen Ksenak Individual 14. May 19 14. May 19 3,000 €15.42 €46,245
13. May 19 Buy Claude LeBlanc Individual 13. May 19 13. May 19 13,500 €15.07 €202,000
13. May 19 Buy David Trick Individual 13. May 19 13. May 19 3,000 €14.85 €44,551
X
Management checks
We assess Ambac Financial Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ambac Financial Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Ambac Financial Group, Inc., a financial services holding company, provides financial guarantees to public and private sector clients in the United States, the United Kingdom, Italy, Austria, Australia, France, and Internationally. It offers financial guarantee insurance policies; and credit derivative contracts and Interest rate derivative transactions. The company was incorporated in 1971 and is headquartered in New York, New York.

Details
Name: Ambac Financial Group, Inc.
FGPN
Exchange: DB
Founded: 1971
$703,616,237
45,520,541
Website: http://www.ambac.com
Address: Ambac Financial Group, Inc.
One State Street Plaza,
New York,
New York, 10004,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS AMBC Common Stock Nasdaq Global Select US USD 11. May 1999
DB FGPN Common Stock Deutsche Boerse AG DE EUR 11. May 1999
Number of employees
Current staff
Staff numbers
113
Ambac Financial Group employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 20:39
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/08
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.