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Atlantic American Corp. (AAME)
NASDAQ:AAME
US Market
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Atlantic American (AAME) AI Stock Analysis

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AAME

Atlantic American

(NASDAQ:AAME)

Rating:57Neutral
Price Target:
$2.50
▼(-23.31% Downside)
Atlantic American's overall stock score reflects a mix of financial challenges and positive technical momentum. The company's strong balance sheet and cash flow management are offset by profitability issues and valuation concerns. Technical analysis shows bullish trends, which partially mitigates the weaker financial and valuation metrics.

Atlantic American (AAME) vs. SPDR S&P 500 ETF (SPY)

Atlantic American Business Overview & Revenue Model

Company DescriptionAtlantic 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 MoneyAtlantic 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
45
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue191.35M188.23M186.79M187.85M199.55M195.35M
Gross Profit147.76M62.40M186.79M64.39M67.86M195.35M
EBITDA1.78M-1.48M3.36M4.94M7.69M18.09M
Net Income-1.47M-4.27M-171.00K1.52M4.28M12.17M
Balance Sheet
Total Assets388.44M393.43M381.26M367.06M402.29M405.19M
Cash, Cash Equivalents and Short-Term Investments35.90M35.57M28.30M237.59M285.74M273.43M
Total Debt0.0037.76M36.76M35.75M33.74M33.74M
Total Liabilities286.05M293.81M273.99M264.87M261.00M260.13M
Stockholders Equity102.39M99.61M107.28M102.19M141.29M145.06M
Cash Flow
Free Cash Flow8.94M4.58M2.54M6.33M981.00K8.74M
Operating Cash Flow9.39M4.80M2.62M6.45M1.09M8.97M
Investing Cash Flow6.13M2.28M-3.37M-3.43M5.30M-2.06M
Financing Cash Flow-811.00K186.00K181.00K1.08M-954.00K-481.00K

Atlantic American Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.26
Price Trends
50DMA
2.54
Positive
100DMA
2.11
Positive
200DMA
1.81
Positive
Market Momentum
MACD
0.27
Positive
RSI
64.85
Neutral
STOCH
32.44
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 3.26 is above the 20-day moving average (MA) of 3.07, above the 50-day MA of 2.54, and above the 200-day MA of 1.81, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 64.85 is Neutral, neither overbought nor oversold. The STOCH value of 32.44 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$3.92B14.6711.35%1.61%0.82%-29.29%
68
Neutral
$18.06B11.9710.24%3.74%9.75%1.30%
67
Neutral
$3.55B19.572.42%2.61%465.03%
65
Neutral
$262.78M23.495.35%-0.04%-49.18%
63
Neutral
$2.53B4.7813.53%59.27%
61
Neutral
$630.91M-0.34%69.59%38.07%
57
Neutral
$68.13M32.862.45%0.61%6.98%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AAME
Atlantic American
3.26
1.62
98.78%
CIA
Citizens
5.21
2.08
66.45%
CNO
CNO Financial
39.74
7.38
22.81%
GNW
Genworth Financial
8.57
1.85
27.53%
BHF
Brighthouse Financial
43.36
1.10
2.60%
ABL
Abacus Life
6.59
-3.45
-34.36%

Atlantic American Corporate Events

Executive/Board ChangesShareholder Meetings
Atlantic American Holds Annual Shareholders Meeting
Neutral
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025