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Abacus Life (ABL)
NASDAQ:ABL
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Abacus Life
(NASDAQ:ABL)
35Underperform
Positive Factors
Business Model
Abacus Life, Inc. has an attractive business model, generating strong returns as a market leader with multiple moats.
Industry Potential
The life settlement industry's potential is underlined by its current capture of only $4B or ~2% share, which can be boosted by rising awareness among consumers and financial advisors.
Market Position
Abacus Life, Inc. has increased its market share to 26%, up from 20% in 2021, indicating strong market positioning and growth potential.
Negative Factors
Competitive Landscape
The risk of added competition poses a potential challenge to Abacus Life, Inc.'s market position.
Financial Risks
Higher direct advertising costs and dilution from outstanding warrants could negatively impact Abacus Life, Inc.'s financial performance.
Regulatory Risks
Abacus Life, Inc. faces risks from regulatory and compliance conflicts that could impact its operations.
Abacus Life (ABL) vs. S&P 500 (SPY)
Market Cap
$725.43M
Dividend YieldN/A
Average Volume (3M)244.56K
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth103.34%
EPS Growth-866.41%
CountryUS
Employees102
SectorFinancial
Sector Strength82
IndustryInsurance - Life
Share Statistics
EPS (TTM)-0.30
Shares Outstanding96,853,040
10 Day Avg. Volume358,763
30 Day Avg. Volume244,563
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.57
Price to Cash Flow (P/CF)-2.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.88Price Target Upside85.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Abacus Life Business Overview & Revenue Model
Company DescriptionAbacus Life (ABL) is a company operating in the life insurance and financial services sector. It specializes in the secondary market for life insurance policies, offering solutions for policyholders seeking to sell their life insurance policies for cash. Abacus Life provides policy valuation, acquisition, and management services, enabling policyholders to unlock the value of their life insurance assets.
How the Company Makes MoneyAbacus Life generates revenue primarily through the acquisition and management of life insurance policies in the secondary market. The company purchases life insurance policies from policyholders who wish to sell their coverage for a lump sum of cash. After acquiring these policies, Abacus Life holds them and eventually collects the death benefit when the insured individual passes away. The difference between the purchase price of the policy and the collected death benefit constitutes a significant portion of the company's earnings. Additionally, Abacus Life may earn fees related to policy valuation and management services, contributing to its overall revenue. The company's success is influenced by its ability to accurately assess policy value, maintain a diversified portfolio, and effectively manage risk.
Abacus Life Financial Statement Overview
Summary
Abacus Life's financial statements indicate significant volatility, with recent revenue growth not translating into profitability or improved cash flows. The absence of crucial financial metrics in 2024 raises concerns about operational efficiency and financial stability.Income Statement
Abacus Life's income statement reflects notable fluctuations, with a significant revenue increase in 2024 but a net income of zero due to various operational challenges. The lack of net profit margin and the inconsistency in EBIT and EBITDA margins highlight profitability concerns. Prior years showed moderate revenue growth, but the sudden jump in 2024's revenue lacks corresponding profitability gains.25
Negative
Balance Sheet
The balance sheet displays weaknesses, primarily due to the complete absence of stockholders' equity and total liabilities in 2024, suggesting potential financial instability or restructuring. Prior years indicated a manageable debt-to-equity ratio, but the recent data's missing values make it challenging to assess current financial health.20
Very Negative
Cash Flow
Cash flow analysis reveals a lack of free cash flow growth and negative operating cash flow in 2023, indicating cash constraints. The absence of cash flow data for 2024 further complicates evaluating the company's liquidity position and ability to generate cash sustainably.15
Very Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 103.26M | 10.00T> | 66.40M | 44.71M | 22.59M | 27.37M | Gross Profit |
| 92.20M | 10.00T> | 59.91M | 38.83M | 8.39M | 26.86M | EBIT |
| 17.20M | 9.75T | 24.13M | 33.67M | 937.12K | -18.69M | EBITDA |
| 19.31M | 9.75T | 23.33M | 34.81M | 1.03M | 0.00 | Net Income Common Stockholders |
| -11.93M | 0.00 | 9.52M | 31.68M | 997.41K | 1.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 853.13K | 0.00 | 27.84M | 30.05M | 2.60M | 1.85M | Total Assets |
| 345.99M | 6.77T | 331.83M | 59.09M | 5.29M | 3.74M | Total Debt |
| 1.50M | 0.00 | 141.74M | 28.33M | 367.51K | 65.61K | Net Debt |
| 646.87K | 0.00 | 116.15M | -1.73M | -2.23M | -1.79M | Total Liabilities |
| 29.23M | 0.00 | 167.76M | 30.95M | 2.57M | 1.13M | Stockholders Equity |
| 316.76M | 0.00 | 163.93M | 27.25M | 80.00K | 2.08M |
| Cash Flow | Free Cash Flow | ||||
| -130.96M | 0.00 | -64.71M | 10.61M | 1.12M | 904.09K | Operating Cash Flow |
| -130.17M | 0.00 | -64.52M | 10.69M | 1.34M | 904.09K | Investing Cash Flow |
| -1.50M | 0.00 | 2.24M | -3.70M | -241.53K | 16.40K | Financing Cash Flow |
| 114.43M | 0.00 | 57.82M | 22.96M | -354.58K | -329.10K |
Abacus Life Technical Analysis
Negative
7.49
Price Trends
7.61
Negative
7.78
Negative
8.71
Negative
Market Momentum
-0.06
Positive
46.01
Neutral
25.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABL, the sentiment is Negative. The current price of 7.49 is below the 20-day moving average (MA) of 7.50, below the 50-day MA of 7.61, and below the 200-day MA of 8.71, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 25.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABL.
Abacus Life Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.40B | 8.61 | 17.26% | 1.99% | 4.03% | 45.42% | |
67 Neutral | $6.12B | 1.95 | 43.24% | 5.01% | 47.95% | ― | |
65 Neutral | $54.70B | 13.51 | 15.41% | 2.71% | 6.10% | 225.22% | |
63 Neutral | $14.35B | 9.94 | 8.94% | 4.37% | 16.34% | -11.76% | |
61 Neutral | $39.53B | 14.89 | 9.79% | 4.70% | 34.25% | 11.22% | |
53 Neutral | $3.37B | 11.22 | 7.84% | ― | 14.74% | ― | |
35 Underperform | $725.43M | ― | -8.15% | ― | 103.34% | -866.41% |
* Financial Sector Average
Performance Comparison
ABL
Abacus Life
7.33
-4.52
-38.14%
LNC
Lincoln National
36.01
6.16
20.64%
MET
Metlife
81.16
9.70
13.57%
PRU
Prudential Financial
111.69
-0.10
-0.09%
UNM
Unum Group
82.00
29.18
55.24%
BHF
Brighthouse Financial
58.17
6.68
12.97%
Abacus Life Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: 4.76% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, significant increases in adjusted net income, strategic acquisitions, and a robust capital position. Despite these positive aspects, the call also addressed increased operating expenses and a GAAP net loss due to non-cash compensation and acquisition costs. The outlook for 2025 remains positive with anticipated continued growth.Highlights
Record Revenue Growth
For the fourth quarter of 2024, revenue grew by 40% year over year to $33.2 million. For the full year, revenue increased 69% to $111.9 million.
Significant Increase in Adjusted Net Income
Adjusted net income for Q4 grew 126% to $13.4 million. For the full year 2024, adjusted net income grew 58% to $46.5 million.
Strategic Acquisitions
Completed acquisitions of Carlisle Management Company and FCF Advisors, adding approximately $2.6 billion in assets under management.
Strong Capital Position
Successfully raised $181.7 million in additional equity and secured a $150 million debt-financing facility, enhancing liquidity.
Expansion of Offerings
Rebranded and launched new ETFs under Abacus FCF Advisors, with management fee reductions and an 18-month fee waiver.
Positive 2025 Outlook
Initiated 2025 outlook for adjusted net income to be between $70 million and $78 million, implying growth of 51% to 68%.
Lowlights
Increased Operating Expenses
Total operating expenses for Q4 2024 were approximately $45.5 million, up from $18.9 million in the prior year, driven by non-cash stock-based compensation and higher SG&A.
GAAP Net Loss
GAAP net loss attributable to stockholders for Q4 was $18.3 million, primarily due to $24.8 million of non-cash stock-based compensation and non-recurring acquisition expenses.
Company Guidance
During the Abacus Global Management fourth quarter 2024 earnings call, the company provided robust guidance for 2025, projecting adjusted net income between $70 million and $78 million, indicating a growth of 51% to 68% from the previous year. For the fourth quarter of 2024, Abacus reported a 40% year-over-year increase in total revenue to $33.2 million. Adjusted net income grew by 126% to $13.4 million, and adjusted EBITDA rose by 51% to $16.6 million. For the full year, total revenue increased by 69% to $111.9 million, adjusted net income grew by 58% to $46.5 million, and adjusted EBITDA climbed 57% to $61.6 million. The company successfully deployed over $344 million in capital throughout the year, significantly expanding their operations and capabilities. Additionally, Abacus completed strategic acquisitions that added approximately $2.6 billion in assets under management, with significant contributions from Carlisle Management Company and FCF Advisors. The company also raised $181.7 million in equity and secured $150 million in debt financing, enhancing its liquidity position to support growth initiatives in 2025.Abacus Life Corporate Events
Executive/Board Changes
Abacus Life Awards RSUs to CFO McCauley
Neutral
Mar 31, 2025
On March 27, 2025, Abacus Global Management’s Compensation Committee awarded 125,000 restricted stock units to CFO Mr. McCauley as part of the 2024 Long-Term Equity Compensation Incentive Plan. The RSUs will vest over three years, with provisions for immediate vesting in case of a change in control, impacting the company’s executive retention strategy and aligning management interests with shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.