NasdaqGS:AMSF

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Proven track record average dividend payer.


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

Stable Share Price: AMSF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

AMSF

-6.7%

US Insurance

-7.6%

US Market


1 Year Return

17.8%

AMSF

9.3%

US Insurance

10.2%

US Market

Return vs Industry: AMSF exceeded the US Insurance industry which returned 9.3% over the past year.

Return vs Market: AMSF exceeded the US Market which returned 10.2% over the past year.


Shareholder returns

AMSFIndustryMarket
7 Day-2.5%-6.7%-7.6%
30 Day9.7%-2.8%-4.5%
90 Day9.9%-2.1%-0.6%
1 Year25.9%17.8%11.8%9.3%12.5%10.2%
3 Year40.2%14.2%25.3%15.8%37.1%28.3%
5 Year156.8%83.0%61.6%42.5%60.8%43.2%

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 compared to its fair value and its price relative to the market?

15.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMSF ($74.32) is trading above our estimate of fair value ($61.18)

Significantly Below Fair Value: AMSF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMSF is poor value based on its PE Ratio (15.4x) compared to the Insurance industry average (12.4x).

PE vs Market: AMSF is good value based on its PE Ratio (15.4x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: AMSF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AMSF is overvalued based on its PB Ratio (3.3x) compared to the US Insurance industry average (1.1x).


Next Steps

Future Growth

How is Amerisafe forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMSF's earnings are forecast to decline over the next 3 years (-28.2% per year).

Earnings vs Market: AMSF's earnings are forecast to decline over the next 3 years (-28.2% per year).

High Growth Earnings: AMSF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AMSF's revenue is expected to decline over the next 3 years (-5% per year).

High Growth Revenue: AMSF's revenue is forecast to decline over the next 3 years (-5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMSF's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has Amerisafe performed over the past 5 years?

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMSF has a high level of non-cash earnings.

Growing Profit Margin: AMSF's current net profit margins (25%) are higher than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: AMSF's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: AMSF's earnings growth over the past year (29.4%) exceeds its 5-year average (2.7% per year).

Earnings vs Industry: AMSF earnings growth over the past year (29.4%) underperformed the Insurance industry 34.8%.


Return on Equity

High ROE: AMSF's Return on Equity (21.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amerisafe'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: AMSF has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMSF's debt is not covered by short term assets (assets are -510.6x debt).


Financial Institutions Analysis

Asset Level: AMSF's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AMSF has a sufficient allowance for bad loans.

Low Risk Liabilities: AMSF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AMSF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AMSF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AMSF has an appropriate level of bad loans.


Next Steps

Dividend

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

6.16%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Amerisafe before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.2%marketbottom25%1.5%markettop25%4.0%industryaverage2.4%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: AMSF's dividend (6.16%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: AMSF's dividend (6.16%) is in the top 25% of dividend payers in the US market (3.96%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AMSF has been paying a dividend for less than 10 years.

Growing Dividend: AMSF's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.8%), AMSF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMSF's dividends in 3 years are forecast to be covered by earnings (82.2% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Gerry Frost (48yo)

4.8yrs

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

Compensation vs Market: Gerry's total compensation ($USD1.78M) is below average for companies of similar size in the US market ($USD3.92M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gerry Frost
President4.8yrsUS$1.78m0.31% $4.4m
Neal Fuller
Executive VP & CFO4.4yrsUS$847.39k0.095% $1.4m
Kathryn Shirley
Executive VP0yrsUS$534.32k0.058% $828.1k
Vincent Gagliano
Executive VP & Chief Risk Officer10.4yrsUS$608.80k0.087% $1.3m
David Morton
Senior Vice President of Sales & Marketing4.8yrsno datano data
Henry Lestage
Senior Vice President of Claims Operations19.4yrsno datano data
Leon Lagneaux
Senior Vice President of Recruitment and Development14.9yrsno datano data
Barbra McCrary
Senior Vice President of Policyholder Services2.3yrsno datano data
Angela Pearson
Senior VP & Controller0.3yrsno datano data
Andrew McCray
Executive VP & Chief Underwriting Officer0.8yrsno data0.047% $669.1k

4.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: AMSF's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerry Frost
President4.8yrsUS$1.78m0.31% $4.4m
Philip Garcia
Independent Director10.1yrsUS$129.00k0.063% $900.8k
Teri Fontenot
Director4.1yrsUS$111.00k0.020% $288.6k
Jared Morris
Chairman of the Board3.8yrsUS$163.00k0.39% $5.6m
Randall Roach
Independent Director12.9yrsUS$117.00k0.045% $649.4k
Millard Morris
Independent Director12.7yrsUS$107.50k0.57% $8.1m
Michael Brown
Independent Director5.3yrsUS$119.00k0.024% $344.6k

5.3yrs

Average Tenure

63yo

Average Age

Experienced Board: AMSF's board of directors are considered experienced (5.3 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

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$1.434b
  • Shares outstanding: 19.30m
  • 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 temporary or permanent disability, death, and medical and hospital expenses. The company provides workers’ compensation insurance for small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, agriculture, maritime, and oil and gas. The company was incorporated in 1985 and is based in DeRidder, Louisiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:27
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.