Atlantic American (AAME) AI Stock Analysis

• Market Cap: $60.17M
• Dividend Yield: 0.83%
• Average Volume (3M): 32.88K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.52
• Revenue Growth: 11.99%
• EPS Growth: N/A
• Country: US
• Employees: 153
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.02
• Shares Outstanding: 20,397,228
• 10 Day Avg. Volume: 17,517
• 30 Day Avg. Volume: 32,881
• PEG Ratio: -0.01
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 6.87
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.20
• Enterprise Value/Ebitda: 10.47
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $2.50 ▲(3.73% Upside)

Atlantic American's overall stock score reflects mixed financial performance with strong cash flow management but challenges in profitability and declining equity. Technical analysis indicates weak momentum, while valuation suggests potential undervaluation, making it a moderately attractive investment.

Positive Factors

Cash Flow Management

Efficient cash flow management with positive free cash flow growth suggests resilience and the ability to fund operations and investments.

Revenue Growth

Revenue growth, albeit slight, indicates potential for market expansion and increased customer acquisition in the insurance sector.

Low Leverage

Improved debt-to-equity ratio enhances financial stability, reducing risk and increasing the company's ability to weather economic downturns.

Negative Factors

Declining Equity

A decline in equity can undermine financial stability, limiting the company's capacity to invest in growth and absorb losses.

Profitability Challenges

Sustained negative net income indicates operational inefficiencies and challenges in maintaining profitability, impacting long-term viability.

Operational Challenges

Lack of EBIT and EBITDA reflects potential operational inefficiencies, which can hinder margin sustainability and competitive positioning.

Atlantic American Business Overview & Revenue Model

Company Description

Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. The company operates through American Southern and Bankers Fidelity segments. It 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. The company also provides surety bond coverage for subdivision construction, school bus contracts, as well as performance and payment bonds. In addition, the company provides individual and group whole life insurance, as well as medicare supplement insurance products; and other accident and health insurance coverages, include various individual and group policies for the payment of standard benefits for the treatment of diagnosed cancer and other critical illnesses, as well as various other policies, such as short-term nursing facility care, accident expense, hospital indemnity, and disability coverages. It markets its products through independent agents and brokers. The company was founded in 1937 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Atlantic American generates revenue primarily through the underwriting of insurance policies, collecting premiums from policyholders in exchange for coverage against specified risks. The company earns income from both property and casualty insurance as well as life and health insurance lines. Key revenue streams include premium income from a diverse portfolio of insurance products, investment income from the management of its investment portfolio, and fees related to policy issuance and administration. Additionally, strategic partnerships with distribution channels and agencies enhance its market reach and contribute to its earnings by expanding its customer base and increasing policy sales.

Atlantic American Financial Statement Overview

Summary

Atlantic American displays mixed financial health with challenges in profitability as seen in declining net income and absent EBIT/EBITDA in recent periods. The company's balance sheet shows strength with low leverage and a solid equity base, yet declining equity raises concerns. Cash flow management appears robust despite inconsistencies, indicating potential resilience in liquidity management.

Income Statement

The income statement shows fluctuating revenue with a slight increase in 2024 compared to 2023. However, the company has experienced negative net income in recent years, indicating challenges in maintaining profitability. The absence of EBIT and EBITDA in 2024 suggests operational challenges, impacting margins negatively.

Balance Sheet

The balance sheet is characterized by a healthy equity ratio, with stockholders' equity representing a significant portion of total assets. The debt-to-equity ratio improved in 2024 due to reduced total debt. However, the declining trend in stockholders' equity over the years raises concerns about long-term financial stability.

Cash Flow

Cash flow statements indicate positive free cash flow growth from 2023 to 2024, with operating cash flow exceeding net income, suggesting efficient cash flow management. However, the fluctuating nature of operating cash flow and inconsistent free cash flow over the years highlight potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	208.22M	188.23M	186.79M	187.85M	199.55M	195.35M
Gross Profit	74.48M	14.37M	18.17M	17.68M	20.36M	28.66M
EBITDA	8.52M	-1.48M	3.36M	4.94M	7.69M	18.09M
Net Income	5.11M	-4.27M	-171.00K	1.52M	4.28M	12.17M
Balance Sheet
Total Assets	430.86M	393.43M	381.26M	367.06M	402.29M	405.19M
Cash, Cash Equivalents and Short-Term Investments	34.44M	35.57M	65.64M	237.59M	285.74M	273.43M
Total Debt	0.00	37.76M	36.76M	35.75M	33.74M	33.74M
Total Liabilities	321.37M	293.81M	273.99M	264.87M	261.00M	260.13M
Stockholders Equity	109.49M	99.61M	107.28M	102.19M	141.29M	145.06M
Cash Flow
Free Cash Flow	24.25M	4.58M	2.54M	6.33M	981.00K	8.74M
Operating Cash Flow	24.81M	4.80M	2.62M	6.45M	1.09M	8.97M
Investing Cash Flow	-12.59M	2.28M	-3.37M	-3.43M	5.30M	-2.06M
Financing Cash Flow	-811.00K	186.00K	181.00K	1.08M	-954.00K	-481.00K

Atlantic American Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAME, the sentiment is Negative. The current price of 2.41 is below the 20-day moving average (MA) of 2.59, below the 50-day MA of 2.80, and above the 200-day MA of 2.26, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 39.15 is Neutral, neither overbought nor oversold. The STOCH value of 48.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AAME.

Atlantic American Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABL	68 Neutral	$673.52M	88.22	3.17%	―	91.78%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CIA	58 Neutral	$293.94M	26.38	5.02%	―	-0.55%	-51.14%
AAME	54 Neutral	$60.17M	29.74	4.75%	0.83%	11.99%	―