Atlantic American (AAME) AI Stock Analysis

• Market Cap: $55.48M
• Dividend Yield: 0.74%
• Average Volume (3M): 32.88K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.61
• 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: 1.61
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $3.50 ▲(8.70% Upside)

Atlantic American's stock score is driven by its positive technical indicators and fair valuation. Despite challenges in profitability, the company's strong balance sheet and efficient cash flow management provide some resilience. Investors should be cautious of potential liquidity risks and monitor technical signals for any shifts in momentum.

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 (AAME) is a diversified insurance holding company based in the United States, primarily engaged in the provision of property and casualty insurance, as well as life and health insurance products. The company operates through its subsidiaries, focusing on segments such as specialty insurance and reinsurance, and serves a broad range of customers by offering tailored insurance solutions designed to meet specific needs in both personal and commercial markets.

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: Positive
• Last Price: 3.22
• 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 Positive. The current price of 3.22 is above the 20-day moving average (MA) of 2.54, above the 50-day MA of 2.74, and above the 200-day MA of 2.33, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 72.10 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
ABL	68 Neutral	$823.08M	107.81	3.17%	―	91.78%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AAME	62 Neutral	$55.48M	12.07	4.75%	0.74%	11.99%	―
CIA	60 Neutral	$256.01M	23.83	5.02%	―	-0.55%	-51.14%