NasdaqGM:AAME

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$82.5m

Last Updated

2021/06/23 01:16 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. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


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 is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: AAME's weekly volatility has decreased from 20% to 12% over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-4.0%

AAME

-4.0%

US Insurance

-0.1%

US Market


1 Year Return

130.9%

AAME

34.8%

US Insurance

39.0%

US Market

Return vs Industry: AAME exceeded the US Insurance industry which returned 34.2% over the past year.

Return vs Market: AAME exceeded the US Market which returned 39% over the past year.


Shareholder returns

AAMEIndustryMarket
7 Day-4.0%-4.0%-0.1%
30 Day-6.0%-4.6%2.6%
90 Day-1.2%4.9%8.0%
1 Year132.1%130.9%38.2%34.8%41.2%39.0%
3 Year57.4%55.4%34.0%24.2%62.4%52.3%
5 Year-0.3%-2.7%82.7%60.1%132.3%106.2%

Long-Term 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 compared to its fair value and its price relative to the market?

4.25x

Price to Earnings (PE) 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 good value based on its PE Ratio (4.2x) compared to the US Insurance industry average (10.1x).

PE vs Market: AAME is good value based on its PE Ratio (4.2x) compared to the US market (19.2x).


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 (0.6x) compared to the US Insurance industry average (1.1x).


Future Growth

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

2.0%

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.


Past Performance

How has Atlantic American performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAME has high quality earnings.

Growing Profit Margin: AAME became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AAME's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: AAME has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AAME has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (51.9%).


Return on Equity

High ROE: AAME's Return on Equity (14.9%) is considered low.


Financial Health

How is Atlantic American's financial position?


Financial Position Analysis

Short Term Liabilities: AAME's short term assets ($59.8M) exceed its short term liabilities ($40.5M).

Long Term Liabilities: AAME's short term assets ($59.8M) do not cover its long term liabilities ($209.4M).


Debt to Equity History and Analysis

Debt Level: AAME's debt to equity ratio (25.3%) is considered satisfactory.

Reducing Debt: AAME's debt to equity ratio has reduced from 32.5% to 25.3% over the past 5 years.

Debt Coverage: AAME's debt is well covered by operating cash flow (39.8%).

Interest Coverage: AAME's interest payments on its debt are well covered by EBIT (18x coverage).


Balance Sheet


Dividend

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

0.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAME's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: AAME's dividend (0.5%) is low compared to the top 25% of dividend payers in the US market (3.44%).


Stability and Growth of Payments

Stable Dividend: AAME is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AAME is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AAME is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AAME's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.6yrs

Average management tenure


CEO

Hilton Howell (58 yo)

26.08yrs

Tenure

US$1,282,734

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 ($USD1.28M) is above average for companies of similar size in the US market ($USD532.21K).

Compensation vs Earnings: Hilton's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AAME's management team is seasoned and experienced (12.6 years average tenure).


Board Members

Experienced Board: AAME's board of directors are considered experienced (7.8 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: 1937
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$82.480m
  • Shares outstanding: 20.42m
  • Website: https://www.atlam.com

Number of Employees


Location

  • Atlantic American Corporation
  • 4370 Peachtree Road, NE
  • Atlanta
  • Georgia
  • 30319-3054
  • United States

Listings


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 Analysis2021/06/23 01:16
End of Day Share Price2021/06/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.