NYSE:AMBC

Stock Analysis Report

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Market Cap

US$674.0m

Last Updated

2021/07/30 01:07 UTC

Data Sources

Company Financials +

Executive Summary

Ambac Financial Group, Inc., a financial services holding company, provides financial guarantees in the United States, the United Kingdom, Italy, Austria, Australia, France, and Internationally. More Details

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Overvalued with weak fundamentals.


Similar Companies

Share Price & News

How has Ambac Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMBC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AMBC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

4.6%

AMBC

1.5%

US Insurance

0.8%

US Market


1 Year Return

13.6%

AMBC

31.6%

US Insurance

37.5%

US Market

Return vs Industry: AMBC underperformed the US Insurance industry which returned 28.4% over the past year.

Return vs Market: AMBC underperformed the US Market which returned 36.5% over the past year.


Shareholder returns

AMBCIndustryMarket
7 Day4.6%1.5%0.8%
30 Day-6.9%-0.03%1.0%
90 Day-14.9%-2.1%3.8%
1 Year13.6%13.6%34.9%31.6%39.7%37.5%
3 Year-29.5%-29.5%35.2%25.1%64.4%54.1%
5 Year-19.6%-19.6%78.1%56.1%124.9%100.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ambac Financial Group undervalued compared to its fair value and its price relative to the market?

0.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AMBC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AMBC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AMBC is unprofitable, so we can't compare its PE Ratio to the US Insurance industry average.

PE vs Market: AMBC 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 AMBC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AMBC is good value based on its PB Ratio (0.6x) compared to the US Insurance industry average (1.2x).


Future Growth

How is Ambac Financial Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMBC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AMBC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AMBC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AMBC's revenue (0.5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: AMBC's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AMBC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Ambac Financial Group performed over the past 5 years?

-47.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMBC is currently unprofitable.

Growing Profit Margin: AMBC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AMBC is unprofitable, and losses have increased over the past 5 years at a rate of 47.8% per year.

Accelerating Growth: Unable to compare AMBC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AMBC is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (62.1%).


Return on Equity

High ROE: AMBC has a negative Return on Equity (-12.25%), as it is currently unprofitable.


Financial Health

How is Ambac Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: AMBC's short term assets ($3.1B) do not cover its short term liabilities ($4.5B).

Long Term Liabilities: AMBC's short term assets ($3.1B) do not cover its long term liabilities ($7.2B).


Debt to Equity History and Analysis

Debt Level: AMBC's debt to equity ratio (777.2%) is considered high.

Reducing Debt: AMBC's debt to equity ratio has increased from 776.2% to 777.2% over the past 5 years.

Debt Coverage: AMBC's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Dividend

What is Ambac Financial Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AMBC'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 AMBC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMBC's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMBC'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?

7.5yrs

Average management tenure


CEO

Claude LeBlanc (56 yo)

4.5yrs

Tenure

US$6,011,501

Compensation

Mr. Claude L. LeBlanc has served as President and Chief Executive Officer and Director of Ambac Financial Group, Inc. and Ambac Assurance Corporation since January 1, 2017. In this role Mr. LeBlanc is resp...


CEO Compensation Analysis

Compensation vs Market: Claude's total compensation ($USD6.01M) is above average for companies of similar size in the US market ($USD2.41M).

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


Leadership Team

Experienced Management: AMBC's management team is seasoned and experienced (7.5 years average tenure).


Board Members

Experienced Board: AMBC'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

Ambac Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ambac Financial Group, Inc.
  • Ticker: AMBC
  • Exchange: NYSE
  • Founded: 1991
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$674.016m
  • Shares outstanding: 46.20m
  • Website: https://www.ambac.com

Number of Employees


Location

  • Ambac Financial Group, Inc.
  • One World Trade Center
  • 41st Floor
  • New York
  • New York
  • 10007
  • United States

Listings


Biography

Ambac Financial Group, Inc., a financial services holding company, provides financial guarantees in the United States, the United Kingdom, Italy, Austria, Australia, France, and Internationally. It offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 01:07
End of Day Share Price2021/07/29 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.