NasdaqGS:AMSF

Stock Analysis Report

Executive Summary

AMERISAFE, Inc., an insurance holding company, underwrites workers’ compensation insurance in the United States.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.5%

AMSF

0.4%

US Insurance

-0.6%

US Market


1 Year Return

3.6%

AMSF

7.6%

US Insurance

0.6%

US Market

AMSF underperformed the Insurance industry which returned 9.2% over the past year.

AMSF outperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

AMSFIndustryMarket
7 Day-1.5%0.4%-0.6%
30 Day-3.9%2.8%2.2%
90 Day3.9%1.4%1.1%
1 Year11.3%3.6%10.3%7.6%2.9%0.6%
3 Year37.4%12.0%46.6%35.3%44.6%35.2%
5 Year128.6%67.6%71.3%50.8%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.75x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Amerisafe's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Amerisafe's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Amerisafe is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Amerisafe earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Amerisafe is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

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

-5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Amerisafe's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Amerisafe's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Amerisafe's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Amerisafe's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Amerisafe's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Amerisafe is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Amerisafe performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Amerisafe's year on year earnings growth rate has been positive over the past 5 years.

Amerisafe's 1-year earnings growth exceeds its 5-year average (50.5% vs 1.9%)

Amerisafe's earnings growth has exceeded the US Insurance industry average in the past year (50.5% vs 3.1%).


Return on Equity

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


Return on Assets

Amerisafe used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Amerisafe's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Amerisafe's level of debt (-0%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Amerisafe's debt level has increased without past 5-year debt data.

Operating cash flow is negative therefore debt is not well covered.

Amerisafe has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are -8727.5x debt.


Next Steps

Dividend

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

6.56%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Amerisafe's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Amerisafe's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Amerisafe has been paying a dividend for less than 10 years.

Dividend payments have increased, but Amerisafe only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.7x coverage).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Gerry Frost (48yo)

4.4yrs

Tenure

US$1,783,044

Compensation

Ms. Gerry Janelle Frost has served as Chief Executive Officer since April 2015 and President since September 2013 of AMERISAFE Inc and American Interstate Insurance Company of Texas. She has served as a Di ...


CEO Compensation Analysis

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

Gerry's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.4yrs

Average Tenure

50.5yo

Average Age

The tenure for the Amerisafe management team is about average.


Board Age and Tenure

4.8yrs

Average Tenure

63yo

Average Age

The tenure for the Amerisafe board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Henry Lestage (58yo)

    Senior Vice President of Claims Operations

    • Tenure: 19yrs
  • Leon Lagneaux (67yo)

    Senior Vice President of Recruitment and Development

    • Tenure: 14.5yrs
  • Gerry Frost (48yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$1.78m
  • Andy McCray

    Executive VP & Chief Underwriting Officer

    • Tenure: 0.3yrs
  • Vince Gagliano (46yo)

    Executive VP & Chief Risk Officer

    • Tenure: 10yrs
    • Compensation: US$608.80k
  • Neal Fuller (57yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$847.39k
  • Kathryn Shirley (53yo)

    Executive VP

    • Tenure: 7.3yrs
    • Compensation: US$534.32k
  • David Morton (48yo)

    Senior Vice President of Sales & Marketing

    • Tenure: 4.4yrs
  • Barbra McCrary (44yo)

    Senior Vice President of Policyholder Services

    • Tenure: 1.8yrs
  • Garrett Little

    Senior Vice President of Safety Operations

    • Tenure: 0.2yrs

Board Members

  • Phil Garcia (63yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$129.00k
  • Teri Fontenot (66yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: US$111.00k
  • Jared Morris (44yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: US$163.00k
  • Gerry Frost (48yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$1.78m
  • Randy Roach (68yo)

    Director

    • Tenure: 12.5yrs
    • Compensation: US$117.00k
  • Millard Morris (75yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$107.50k
  • Michael Brown (55yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$119.00k

Company Information

Amerisafe, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amerisafe, Inc.
  • Ticker: AMSF
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$1.274b
  • Shares outstanding: 19.29m
  • Website: https://www.amerisafe.com

Number of Employees


Location

  • Amerisafe, Inc.
  • 2301 Highway 190 West
  • DeRidder
  • Louisiana
  • 70634
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMSFNasdaqGS (Nasdaq Global Select)YesVoting Common StockUSUSDNov 2005
A3IDB (Deutsche Boerse AG)YesVoting Common StockDEEURNov 2005

Biography

AMERISAFE, Inc., an insurance holding company, underwrites workers’ compensation insurance in the United States. Its workers’ compensation insurance policies provide benefits to injured employees for tempo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:33
End of Day Share Price2019/09/19 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.