Atlantic American (AAME) AI Stock Analysis

• Market Cap: $60.17M
• Dividend Yield: 0.68%
• Average Volume (3M): 32.88K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.52
• 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: 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: 0.45
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: 10.90
• 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: 49 Neutral
• Price Target: $3.00 ▲(2.74% Upside)

The overall stock score of 49 reflects mixed financial performance with profitability challenges and a strong balance sheet. Technical analysis indicates neutral momentum, while valuation suggests the stock is relatively expensive. The absence of earnings call and corporate events data limits further insights.

Atlantic American Business Overview & Revenue Model

Company Description

Atlantic American Corporation (AAME) is a diversified holding company that operates primarily in the insurance and financial services sectors. The company focuses on providing a range of insurance products, including property and casualty insurance, as well as life and health insurance through its subsidiaries. Atlantic American aims to deliver financial security and peace of mind to its customers while leveraging its expertise in underwriting and risk management.

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 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	198.98M	188.23M	186.79M	187.85M	199.55M	195.35M
Gross Profit	37.99M	62.40M	186.79M	64.39M	67.86M	195.35M
EBITDA	8.18M	-1.48M	3.36M	4.94M	7.69M	18.09M
Net Income	2.53M	-4.27M	-171.00K	1.52M	4.28M	12.17M
Balance Sheet
Total Assets	429.34M	393.43M	381.26M	367.06M	402.29M	405.19M
Cash, Cash Equivalents and Short-Term Investments	46.42M	35.57M	28.30M	237.59M	285.74M	273.43M
Total Debt	43.35M	37.76M	36.76M	35.75M	33.74M	33.74M
Total Liabilities	323.17M	293.81M	273.99M	264.87M	261.00M	260.13M
Stockholders Equity	106.17M	99.61M	107.28M	102.19M	141.29M	145.06M
Cash Flow
Free Cash Flow	17.69M	4.58M	2.54M	6.33M	981.00K	8.74M
Operating Cash Flow	18.26M	4.80M	2.62M	6.45M	1.09M	8.97M
Investing Cash Flow	7.76M	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: Positive
• Last Price: 2.92
• 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 Positive. The current price of 2.92 is below the 20-day moving average (MA) of 2.98, below the 50-day MA of 3.05, and above the 200-day MA of 2.18, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 45.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAME.

Atlantic American Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CIA	66 Neutral	$293.94M	26.38	5.02%	―	-0.55%	-51.14%
ABL	62 Neutral	$487.69M	-79.12	3.17%	―	91.78%	―
AAME	49 Neutral	$60.17M	29.74	2.45%	0.68%	6.98%	―