NasdaqGM:AAME

Stock Analysis Report

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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

Mediocre balance sheet and overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.3%

AAME

-0.6%

US Insurance

-1.3%

US Market


1 Year Return

-3.9%

AAME

-12.8%

US Insurance

18.5%

US Market

Return vs Industry: AAME exceeded the US Insurance industry which returned -12.8% over the past year.

Return vs Market: AAME underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

AAMEIndustryMarket
7 Day-3.3%-0.6%-1.3%
30 Day5.3%1.9%5.3%
90 Day20.9%-1.7%7.5%
1 Year-3.9%-3.9%-10.4%-12.8%21.3%18.5%
3 Year-28.0%-29.0%-0.6%-7.8%42.4%32.9%
5 Year-47.5%-48.7%35.7%18.6%84.2%63.5%

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?

0.36x

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 US 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 (0.9x).


Next Steps

Future Growth

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

25.6%

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

Past Performance

How has Atlantic American performed over the past 5 years?

-53.1%

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 53.1% 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 (-3.3%).


Return on Equity

High ROE: AAME has a negative Return on Equity (-1.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is Atlantic American's financial position?


Financial Position Analysis

Short Term Liabilities: AAME's short term assets ($67.7M) exceed its short term liabilities ($53.6M).

Long Term Liabilities: AAME's short term assets ($67.7M) do not cover its long term liabilities ($208.2M).


Debt to Equity History and Analysis

Debt Level: AAME's debt to equity ratio (27.2%) is considered satisfactory.

Reducing Debt: AAME's debt to equity ratio has reduced from 32% to 27.2% over the past 5 years.

Debt Coverage: AAME's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: Insufficient data to determine if AAME's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AAME's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AAME's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AAME's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AAME's dividend payments have been 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?

12.0yrs

Average management tenure


CEO

Hilton Howell (58 yo)

25.42yrs

Tenure

US$1,275,665

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 ($USD1.28M) is above average for companies of similar size in the US market ($USD589.00K).

Compensation vs Earnings: Hilton's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Hilton Howell
Chairman25.42yrsUS$1.28m6.02%
$ 2.7m
Jeffrey Franklin
VP, CFO & Corporate Secretary3.17yrsUS$575.27k0.21%
$ 96.7k
John Dunbar
Chief Information Officer & VPno datano datano data
Barbara Snyder
Vice President of Human Resources20.75yrsno datano data
Ricky Burns
Executive Vice President2.33yrsno datano data
Casey Hudson
Vice President & Controllerno datano datano data

12.0yrs

Average Tenure

Experienced Management: AAME's management team is seasoned and experienced (12 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hilton Howell
Chairman25.42yrsUS$1.28m6.02%
$ 2.7m
Scott Thompson
Director24.67yrsUS$40.00k0.71%
$ 321.1k
Robin Howell
Director8.42yrsUS$40.00k19.63%
$ 8.8m
D. Wheeler
Independent Director5.33yrsUS$45.00k0.098%
$ 44.0k
Mark Preisinger
Independent Director4.58yrsUS$45.00k0.049%
$ 22.0k
Calvin Wall
Chairman of American Southern Insurance Companyno datano datano data
Joseph Scheerer
Independent Director5.83yrsUS$45.00k0.098%
$ 44.0k

7.1yrs

Average Tenure

59yo

Average Age

Experienced Board: AAME's board of directors are considered experienced (7.1 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$44.999m
  • Shares outstanding: 20.45m
  • 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 Analysis2020/10/21 00:16
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.