Atlantic American
Market Cap
US$46.1m
Last Updated
2020/02/22 00:24 UTC
Data Sources
Company Financials
Executive Summary
Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States.
Snowflake Analysis
Overvalued with worrying balance sheet.
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
Stable Share Price: AAME has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
n/a
AAME
-0.9%
US Insurance
0.06%
US Market
1 Year Return
-8.9%
AAME
17.1%
US Insurance
19.3%
US Market
Return vs Industry: AAME underperformed the US Insurance industry which returned 17.1% over the past year.
Return vs Market: AAME underperformed the US Market which returned 19.3% over the past year.
Shareholder returns
| AAME | Industry | Market | |
|---|---|---|---|
| 7 Day | n/a | -0.9% | 0.06% |
| 30 Day | 39.8% | 2.9% | 1.7% |
| 90 Day | 33.3% | 6.0% | 9.0% |
| 1 Year | -8.1%-8.9% | 19.9%17.1% | 21.8%19.3% |
| 3 Year | -30.3%-31.6% | 35.2%24.8% | 49.5%39.9% |
| 5 Year | -33.1%-35.0% | 73.0%52.1% | 73.1%54.1% |
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
1 day ago | Simply Wall St
Introducing Atlantic American (NASDAQ:AAME), The Stock That Dropped 40% In The Last Five Years1 month ago | Simply Wall St
Should You Buy Atlantic American Corporation (NASDAQ:AAME) For Its 1.0% Dividend?2 months ago | Simply Wall St
Our Take On Atlantic American Corporation's (NASDAQ:AAME) CEO SalaryValuation
Is Atlantic American undervalued compared to its fair value and its price relative to the market?
0.46x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate AAME's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate AAME's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: AAME is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.
PE vs Market: AAME is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate AAME's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: AAME is good value based on its PB Ratio (0.4x) compared to the US Insurance industry average (1.1x).
Next Steps
Future Growth
How is Atlantic American forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
3.5%
Forecasted Insurance industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Atlantic American has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Take a look at our analysis of AAME’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Explore growth companies in the Insurance industry.
Past Performance
How has Atlantic American performed over the past 5 years?
-27.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AAME is currently unprofitable.
Growing Profit Margin: AAME is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: AAME is unprofitable, and losses have increased over the past 5 years at a rate of -27.6% per year.
Accelerating Growth: Unable to compare AAME's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: AAME is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (28.7%).
Return on Equity
High ROE: AAME has a negative Return on Equity (-1.25%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Atlantic American's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: AAME has a low level of unsold assets or inventory.
Debt Coverage by Assets: AAME's debt is covered by short term assets (assets are 2.5x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: AAME has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: AAME has been profitable on average in the past, therefore cash runway is not a concern.
Financial Institutions Analysis
Asset Level: AAME's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if AAME has a sufficient allowance for bad loans.
Low Risk Liabilities: AAME reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if AAME has an acceptable proportion of non-loan assets held.
Low Risk Deposits: AAME has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if AAME has an appropriate level of bad loans.
Next Steps
Dividend
What is Atlantic American's current dividend yield, its reliability and sustainability?
0.77%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AAME's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: AAME's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (3.71%).
Stability and Growth of Payments
Stable Dividend: AAME has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: AAME has only been paying a dividend for 8 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: AAME is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.3yrs
Average management tenure
CEO
Hilton Howell (57yo)
24.8yrs
Tenure
US$1,098,585
Compensation
Mr. Hilton Hatchett Howell, Jr. has been the Chief Executive Officer of Gray Television, Inc. since August 20, 2008 and also served its President since June 2013 until January 03, 2019. Mr. Howell has been ...
CEO Compensation Analysis
Compensation vs Market: Hilton's total compensation ($USD1.10M) is above average for companies of similar size in the US market ($USD521.37K).
Compensation vs Earnings: Hilton's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 24.8yrs | US$1.10m | 5.95% $2.7m | |
| VP, CFO & Corporate Secretary | 2.5yrs | US$449.17k | 0.23% $108.2k | |
| Chief Information Officer & VP | 0yrs | no data | no data | |
| Vice President of Human Resources | 20.1yrs | no data | no data | |
| Executive Vice President | 1.7yrs | no data | no data | |
| Vice President & Controller | 0yrs | no data | no data |
11.3yrs
Average Tenure
Experienced Management: AAME's management team is seasoned and experienced (11.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 24.8yrs | US$1.10m | 5.95% $2.7m | |
| Director | 24yrs | US$40.00k | 0.76% $350.9k | |
| Director | 7.8yrs | US$40.00k | 19.61% $9.0m | |
| Independent Director | 4.7yrs | US$45.00k | 0.098% $45.0k | |
| Independent Director | 3.9yrs | US$45.00k | 0.049% $22.5k | |
| Chairman of American Southern Insurance Company | 0yrs | no data | no data | |
| Independent Director | 5.2yrs | US$45.00k | 0.098% $45.0k |
6.5yrs
Average Tenure
58yo
Average Age
Experienced Board: AAME's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$46.079m
- Shares outstanding: 20.48m
- Website: https://www.atlam.com
Number of Employees
Location
- Atlantic American Corporation
- 4370 Peachtree Road, NE
- Atlanta
- Georgia
- 30319
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AAME | NasdaqGM (Nasdaq Global Market) | Yes | Common Stock | US | USD | Dec 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 Fidelity segments. The company offers property and casualty insurance products, including business automobile insurance coverage for state governments, local municipalities, and other motor pools and fleets; and inland marine and general liability insurance products. It also provides surety bond coverage for school bus transportation and subdivision construction, as well as performance and payment bonds. In addition, it provides ordinary and term life insurance, medicare supplement, and other accident and health insurance products. The company markets its products through independent agents and brokers. Atlantic American Corporation was founded in 1968 and is based in Atlanta, Georgia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 00:24 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.