Atlantic American (AAME) AI Stock Analysis

• Market Cap: $47.73M
• Dividend Yield: 0.85%
• Average Volume (3M): 16.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 2.04%
• EPS Growth: -66.36%
• Country: US
• Employees: 153
• Sector: Financial
• Sector Strength: 82
• Industry: Insurance - Life
• EPS (TTM): 0.03
• Shares Outstanding: 20,397,228
• 10 Day Avg. Volume: 38,886
• 30 Day Avg. Volume: 16,117
• PEG Ratio: -0.44
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.54
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.37
• Enterprise Value/Ebitda: -10.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $2.50 ▲(6.84%Upside)

The overall stock score for AAME reflects mixed financial performance and technical analysis. The company faces profitability challenges as indicated by its income statement and negative P/E ratio, although it benefits from a solid balance sheet. Technical indicators show bullish momentum but with caution due to overbought signals. The absence of earnings call data and corporate events leaves the score primarily influenced by these factors.

Atlantic American Business Overview & Revenue Model

Company Description

Atlantic American Corporation (AAME) is a publicly traded insurance holding company that primarily operates within the insurance sector. The company, headquartered in Atlanta, Georgia, provides life, health, property, and casualty insurance products through its subsidiaries. These subsidiaries include Bankers Fidelity Life Insurance Company, which offers life and supplemental health insurance, and American Southern Insurance Company, which specializes in automobile and property insurance products.

How the Company Makes Money

Atlantic American Corporation generates revenue primarily through the sale of insurance policies across its subsidiaries. The company earns income from policy premiums paid by customers for life, health, property, and casualty insurance coverage. Additionally, the company invests the premiums collected in various financial instruments, generating investment income. Key factors contributing to its earnings include effective risk management practices, maintaining strong customer relationships, and leveraging its subsidiaries' expertise in niche markets. Atlantic American may also engage in strategic partnerships to expand its product offerings and distribution channels, enhancing its revenue streams.

Atlantic American Financial Statement Overview

Summary

Atlantic American exhibits mixed financial health. The income statement reveals challenges with profitability due to negative net income and absent EBIT/EBITDA. The balance sheet shows strength with low leverage and a solid equity base, but declining equity raises long-term concerns. Cash flow management is efficient despite inconsistencies, indicating potential liquidity 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	188.23M	186.79M	187.85M	199.55M	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	33.74M	35.04M
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: Positive
• Last Price: 2.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2.34 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 1.79, and above the 200-day MA of 1.60, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 78.74 is Negative, neither overbought nor oversold. The STOCH value of 74.27 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
GNW	73 Outperform	$3.31B	16.21	2.73%	―	0.98%	156.14%
CNO	63 Neutral	$3.79B	13.37	12.47%	1.78%	-0.78%	-16.22%
CIA	59 Neutral	$180.04M	20.75	4.23%	―	1.80%	-39.04%
Sector *	58 Neutral	$12.97B	5.12	-2.61%	5.35%	5.83%	-54.44%
AAME	53 Neutral	$47.73M	―	-1.43%	0.85%	2.04%	-66.36%
BHF	49 Neutral	$3.06B	6.38	13.00%	―	14.74%	―
ABL	48 Neutral	$527.51M	―	-5.98%	―	76.25%	-924.20%

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.