Atlantic American (AAME) AI Stock Analysis

• Market Cap: $59.15M
• Dividend Yield: 0.69%
• Average Volume (3M): 51.96K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.53
• Revenue Growth: 6.98%
• EPS Growth: N/A
• Country: US
• Employees: 153
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.15
• Shares Outstanding: 20,397,228
• 10 Day Avg. Volume: 57,982
• 30 Day Avg. Volume: 51,960
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 0.60
• Enterprise Value/Ebitda: 50.21
• 1Y Price Target: $3.00
• Price Target Upside: 3.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $3.00 ▲(3.45% Upside)

Atlantic American's stock score is primarily influenced by its mixed financial performance, with strengths in cash flow management but challenges in profitability and declining equity. Technical analysis indicates potential medium-term strength despite short-term weakness. The high P/E ratio suggests the stock is overvalued, contributing to a lower valuation score.

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 through several key streams, primarily from the premiums collected on its insurance policies. The company offers various insurance products, including personal and commercial lines of property and casualty insurance, as well as life and health insurance policies. Additionally, the company earns investment income from the premiums it collects, which are invested in various financial instruments. Strategic partnerships with agents and brokers also enhance its distribution capabilities, contributing to higher sales volumes. Furthermore, the company may engage in reinsurance arrangements that can provide additional revenue sources and risk mitigation, helping to stabilize earnings.

Atlantic American Financial Statement Overview

Summary

Atlantic American exhibits mixed financial health with challenges in profitability, as evidenced by declining net income and absent EBIT/EBITDA. The balance sheet is strong with low leverage and a solid equity base, though declining equity is a concern. Cash flow management is efficient despite some inconsistencies, indicating potential resilience.

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	191.35M	188.23M	186.79M	187.85M	199.55M	195.35M
Gross Profit	147.76M	62.40M	186.79M	64.39M	67.86M	195.35M
EBITDA	1.78M	-1.48M	3.36M	4.94M	7.69M	18.09M
Net Income	-1.47M	-4.27M	-171.00K	1.52M	4.28M	12.17M
Balance Sheet
Total Assets	388.44M	393.43M	381.26M	367.06M	402.29M	405.19M
Cash, Cash Equivalents and Short-Term Investments	35.90M	35.57M	28.30M	237.59M	285.74M	273.43M
Total Debt	0.00	37.76M	36.76M	35.75M	33.74M	33.74M
Total Liabilities	286.05M	293.81M	273.99M	264.87M	261.00M	260.13M
Stockholders Equity	102.39M	99.61M	107.28M	102.19M	141.29M	145.06M
Cash Flow
Free Cash Flow	8.94M	4.58M	2.54M	6.33M	981.00K	8.74M
Operating Cash Flow	9.39M	4.80M	2.62M	6.45M	1.09M	8.97M
Investing Cash Flow	6.13M	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: 2.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.9 is below the 20-day moving average (MA) of 3.28, below the 50-day MA of 2.90, and above the 200-day MA of 1.95, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 37.27 is Neutral, neither overbought nor oversold. The STOCH value of 39.34 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
CNO	73 Outperform	3.88B	14.77	16.17%	1.65%	0.82%	-29.29%
BHF	71 Outperform	3.19B	6.02	7.82%	―	59.27%	―
GNW	67 Neutral	3.74B	20.59	3.52%	―	2.61%	465.03%
CIA	65 Neutral	287.40M	25.79	7.09%	―	-0.04%	-49.18%
ABL	59 Neutral	568.01M	-92.15	-5.65%	―	69.59%	38.07%
AAME	53 Neutral	$59.15M	29.23	2.45%	0.69%	6.98%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Atlantic American Corporate Events

Atlantic American Holds Annual Shareholders Meeting

On May 13, 2025, Atlantic American Corporation held its Annual Meeting of Shareholders where key decisions were made. The shareholders voted on the election of six directors, the ratification of Forvis Mazars, LLP as the independent accounting firm for 2025, and advisory votes on executive compensation and its frequency. The board decided to hold the advisory vote on executive compensation every three years.