NasdaqGM:AAME

Stock Analysis Report

Executive Summary

Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.

Risks

  • Atlantic American is not covered by any analysts.

Similar Companies

Share Price & News

How has Atlantic American's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

16.0%

NasdaqGM:AAME

-2.3%

US Insurance

-1.6%

US Market


1 Year Return

3.6%

NasdaqGM:AAME

5.6%

US Insurance

-3.0%

US Market

AAME underperformed the Insurance industry which returned 5.6% over the past year.

AAME outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

AAMEIndustryMarket
7 Day16.0%-2.3%-1.6%
30 Day21.0%-5.9%-5.7%
90 Day11.4%-0.6%0.2%
1 Year4.4%3.6%8.1%5.6%-0.8%-3.0%
3 Year-19.5%-21.0%40.6%30.0%38.1%29.1%
5 Year-29.1%-31.5%60.5%41.5%50.8%34.1%

Price Volatility Vs. Market

How volatile is Atlantic American's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Atlantic American undervalued based on future cash flows and its price relative to the stock market?

119.57x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Atlantic American to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Atlantic American to establish if it is available at substantial discount.


Price Based on Earnings

Atlantic American is overvalued based on earnings compared to the US Insurance industry average.

Atlantic American is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Atlantic American, we can't assess if its growth is good value.


Price Based on Value of Assets

Atlantic American is good value based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

How is Atlantic American expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Atlantic American is high growth as no revenue estimate data is available.

Atlantic American's earnings are expected to grow significantly at over 20% yearly.

Unable to compare Atlantic American's revenue growth to the United States of America market average as no estimate data is available.

Atlantic American's earnings growth is expected to exceed the United States of America market average.

Atlantic American's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Atlantic American will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Atlantic American performed over the past 5 years?

-22.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Atlantic American's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Atlantic American's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Atlantic American's 1-year earnings growth is negative, it can't be compared to the US Insurance industry average.


Return on Equity

Atlantic American has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Atlantic American used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Atlantic American's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Atlantic American's financial position?


Financial Position Analysis

Atlantic American is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Atlantic American's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Atlantic American's level of debt (29.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (38.6% vs 29.9% today).

Debt is not well covered by operating cash flow (10.8%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

What is Atlantic American's current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Dividend Yield and Payments Analysis

Atlantic American's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Atlantic American's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Atlantic American is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Atlantic American is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Atlantic American's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Atlantic American's salary, the management and board of directors tenure and is there insider trading?

10.8yrs

Average management tenure


CEO

Hilton Howell (57yo)

24.3yrs

Tenure

US$3,215,755

Compensation

Mr. Hilton Hatchett Howell, Jr. has been the Chief Executive Officer of Gray Television, Inc. since August 20, 2008 and also served its President since June 2013 until January 03, 2019. Mr. Howell is a Mem ...


CEO Compensation Analysis

Hilton's remuneration is higher than average for companies of similar size in United States of America.

Hilton's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

10.8yrs

Average Tenure

The average tenure for the Atlantic American management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.0yrs

Average Tenure

58yo

Average Age

The tenure for the Atlantic American board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Hilton Howell (57yo)

    Chairman

    • Tenure: 24.3yrs
    • Compensation: US$3.22m
  • John Dunbar

    Chief Information Officer & VP

    • Tenure: 0.0yrs
  • Bruce Snyder

    Assistant Vice President of Information Services

    • Tenure: 0.0yrs
  • Barbara Snyder

    Vice President of Human Resources

    • Tenure: 19.6yrs
  • Casey Hudson

    Vice President & Controller

    • Tenure: 0.0yrs
  • Jeffrey Franklin (41yo)

    VP, CFO & Corporate Secretary

    • Tenure: 2.0yrs
    • Compensation: US$449.17k
  • Rick Burns

    Executive Vice President

    • Tenure: 1.2yrs

Board Members

  • Hilton Howell (57yo)

    Chairman

    • Tenure: 24.3yrs
    • Compensation: US$3.22m
  • Scott Thompson (74yo)

    Director

    • Tenure: 23.5yrs
    • Compensation: US$40.00k
  • Robin Howell (54yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$40.00k
  • D. Wheeler (59yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$45.00k
  • Mark Preisinger (59yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$45.00k
  • Calvin Wall

    Chairman of American Southern Insurance Company

    • Tenure: 0.0yrs
  • Joe Scheerer (44yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$45.00k

Company Information

Atlantic American Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atlantic American Corporation
  • Ticker: AAME
  • Exchange: NasdaqGM
  • Founded: 1968
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$56.370m
  • Shares outstanding: 20.16m
  • Website: https://www.atlam.com

Number of Employees


Location

  • Atlantic American Corporation
  • 4370 Peachtree Road, NE
  • Atlanta
  • Georgia
  • 30319
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAMENasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDDec 1972

Biography

Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. It operates through American Southern and Bankers Fidel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:32
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.