Atlantic American (AAME) AI Stock Analysis

• Market Cap: $53.44M
• Dividend Yield: 0.74%
• Average Volume (3M): 32.88K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.57
• 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: 1.05
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 0.75
• Enterprise Value/Ebitda: 6.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $3.00 ▲(0.00% Upside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is driven primarily by improved financial performance (profitability and cash flow rebound plus a debt-free balance sheet). Technicals add support with a constructive uptrend and positive momentum. Valuation is reasonable on earnings (P/E ~13.5) but tempered by a low dividend yield, keeping the overall score in the upper-mid range.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a healthy equity ratio indicates financial stability, providing a buffer against economic downturns and enabling strategic investments.

Revenue Growth

Consistent revenue growth demonstrates the company's ability to expand its market reach and enhance its product offerings, supporting long-term business sustainability.

Efficient Cash Flow Management

Efficient cash flow management ensures the company can meet its financial obligations and invest in growth opportunities, enhancing its long-term viability.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, evidenced by negative net income, can hinder the company's ability to reinvest in its business and compete effectively in the market.

Declining Equity

A declining equity trend raises concerns about the company's long-term financial stability and its ability to sustain operations without additional capital.

Inconsistent Cash Flow

Inconsistent cash flow can lead to liquidity risks, affecting the company's ability to fund operations and invest in growth, potentially impacting its financial health.

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

Financials show a meaningful TTM rebound: profitability returned to positive (net margin ~2.5%), operating/free cash flow improved sharply (~$24.8M/$24.2M), and the balance sheet is conservatively positioned with zero reported debt. The main constraint is consistency, as earnings and cash flows have been volatile across recent years.

Income Statement

Profitability improved meaningfully in TTM (Trailing-Twelve-Months), with revenue up ~4.6% and a return to positive earnings (net margin ~2.5%) after losses in 2024. That said, profitability remains modest versus earlier years (e.g., much higher net margin in 2020), and results have been somewhat inconsistent across the last several annual periods, which limits confidence in durability.

Balance Sheet

The balance sheet looks conservatively positioned in TTM (Trailing-Twelve-Months) with zero reported debt and a solid equity base (~$109.5M), supporting financial flexibility. Prior years show moderate leverage (debt-to-equity roughly ~0.24–0.38), so the recent move to no debt is a clear positive; the main offset is that returns on equity have been volatile (negative in 2023–2024, positive again in TTM).

Cash Flow

Cash generation strengthened sharply in TTM (Trailing-Twelve-Months), with operating cash flow of ~$24.8M and free cash flow of ~$24.2M (up ~37% versus the prior period shown). Free cash flow is broadly in line with earnings, which supports earnings quality; however, historical cash flow has been uneven year-to-year (including very low operating cash flow in 2021–2023), indicating variability.

Breakdown	TTM	Dec 2024	Mar 2024	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	37.76M	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: 3.00
• 50DMA: Negative
• 100DMA: Negative
• 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 3 is above the 20-day moving average (MA) of 2.69, above the 50-day MA of 2.76, and above the 200-day MA of 2.60, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.10 is Neutral, neither overbought nor oversold. The STOCH value of 26.05 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
AAME	68 Neutral	$53.44M	11.62	4.75%	0.74%	11.99%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CIA	59 Neutral	$272.61M	25.37	5.02%	―	-0.55%	-51.14%