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 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

-1.7%

AAME

-0.9%

US Insurance

0.06%

US Market


1 Year Return

-14.4%

AAME

17.1%

US Insurance

19.3%

US Market

Return vs Industry: AAME underperformed the US Insurance industry which returned 17.5% over the past year.

Return vs Market: AAME underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

AAMEIndustryMarket
7 Day-1.7%-0.9%0.06%
30 Day18.4%2.9%1.7%
90 Day15.4%6.0%9.0%
1 Year-13.8%-14.4%19.9%17.1%21.8%19.3%
3 Year-39.6%-40.8%35.2%24.8%49.5%39.9%
5 Year-42.4%-44.0%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

Valuation

Is Atlantic American undervalued compared to its fair value and its price relative to the market?

0.4x

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 (1.2x).


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

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 (23.9%).


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?

0.89%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AAME's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: AAME's dividend (0.83%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 ($USD1.10M) is above average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hilton Howell
Chairman24.8yrsUS$1.10m5.95% $2.7m
Jeffrey Franklin
VP, CFO & Corporate Secretary2.5yrsUS$449.17k0.23% $108.2k
John Dunbar
Chief Information Officer & VP0yrsno datano data
Barbara Snyder
Vice President of Human Resources20.1yrsno datano data
Ricky Burns
Executive Vice President1.7yrsno datano data
Casey Hudson
Vice President & Controller0yrsno datano data

11.3yrs

Average Tenure

Experienced Management: AAME's management team is seasoned and experienced (11.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hilton Howell
Chairman24.8yrsUS$1.10m5.95% $2.7m
Scott Thompson
Director24yrsUS$40.00k0.76% $350.9k
Robin Howell
Director7.8yrsUS$40.00k19.61% $9.0m
D. Wheeler
Independent Director4.7yrsUS$45.00k0.098% $45.0k
Mark Preisinger
Independent Director3.9yrsUS$45.00k0.049% $22.5k
Calvin Wall
Chairman of American Southern Insurance Company0yrsno datano data
Joseph Scheerer
Independent Director5.2yrsUS$45.00k0.098% $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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:31
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
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.