Abacus Life (ABL) AI Stock Analysis

• Market Cap: $568.01M
• Dividend Yield: N/A
• Average Volume (3M): 790.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 69.59%
• EPS Growth: 38.07%
• Country: US
• Employees: 157
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.22
• Shares Outstanding: 96,764,626
• 10 Day Avg. Volume: 1,241,365
• 30 Day Avg. Volume: 790,367
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 5.89
• Enterprise Value/Gross Profit: 6.67
• Enterprise Value/Ebitda: 34.81
• 1Y Price Target: $12.88
• Price Target Upside: 119.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 59 Neutral
• Price Target: $7.00 ▲(19.25% Upside)

Abacus Life's overall stock score is driven by strong earnings call performance, highlighting robust revenue growth and strategic financial management. However, financial performance is hindered by profitability and cash flow challenges, and valuation metrics are weak due to negative earnings.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand and effective market penetration, supporting long-term business expansion and stability.

Asset Management Performance

Robust asset management inflows enhance revenue streams and demonstrate effective portfolio management, strengthening the company's financial foundation.

Strategic Financial Management

Effective financial management and strategic asset sales improve profitability, showcasing operational efficiency and enhancing shareholder value.

Negative Factors

Profitability Challenges

Negative profitability impacts return on equity and may hinder reinvestment capabilities, posing a risk to long-term financial health.

Cash Flow Concerns

Persistent negative cash flow raises sustainability concerns, potentially limiting operational flexibility and growth opportunities.

Increased Operating Expenses

Rising operating expenses can pressure margins and reduce profitability, challenging the company's ability to maintain cost efficiency.

Abacus Life Business Overview & Revenue Model

Company Description

Abacus Global Management, Inc. operates as an alternative asset manager and market maker in the United States. It operates in five segments: Active Management, Originations, Asset Management, Portfolio Servicing, and Technology Services. The Active Management segment is involved in the buying, selling, and trading of policies; and the maintenance of policies until receipt of death benefits. Its Originations segment originates life insurance policy settlements between investors or buyers, and the sellers, who are often the original policy owners. The Asset Management segment provides asset management services to investors investing in alternative investment and equity portfolio funds based on fund investment agreements. Its Portfolio Servicing segment offers policy services to customers on a contract basis. The Technology Services segment provides real-time mortality verification, missing participant verification, and other services specific to the life insurance market services to customers on a contract basis. It sells its products through financial advisors or agents, direct-to-consumer, and traditional life settlements intermediaries. The company was formerly known as Abacus Life, Inc. and changed its name to Abacus Global Management, Inc. in February 2025. Abacus Global Management, Inc. was founded in 2004 and is headquartered in Orlando, Florida.

How the Company Makes Money

Abacus Life makes money primarily through the acquisition and management of life insurance policies. The company purchases these policies at a discount from their face value and continues to pay the premiums. Upon the maturity of these policies, Abacus Life collects the death benefits, with the difference between the purchase price, premiums paid, and the death benefit amounting to profit. Key revenue streams include the proceeds from policy maturities and the management of a diversified portfolio of life insurance assets. Strategic partnerships with financial advisors, brokers, and insurance companies also play a significant role in sourcing policies and expanding the company's market reach.

Abacus Life Financial Statement Overview

Summary

Abacus Life shows strong revenue growth but faces challenges with profitability and cash flow. The balance sheet is stable with low leverage, but negative net income impacts return on equity.

Income Statement

Abacus Life shows a mixed income statement performance. The TTM data indicates a significant increase in total revenue compared to the previous annual period, resulting in a strong revenue growth rate. However, net profit margin is negative due to significant net losses, which raises concerns about profitability. The gross profit margin remains healthy, but the EBIT and EBITDA margins are inconsistent, reflecting volatility in operating performance.

Balance Sheet

The balance sheet of Abacus Life demonstrates a stable equity base with a reasonable equity ratio. The company has managed to maintain a low debt-to-equity ratio, indicating controlled leverage. However, the return on equity is impacted by negative net income, which is a concern for investors looking for profitable returns.

Cash Flow

The cash flow analysis is concerning as Abacus Life reports negative operating cash flow in both TTM and previous annual periods, leading to negative free cash flow. This indicates cash management challenges. The operating cash flow to net income ratio is unfavorable due to persistent net losses, which raises sustainability risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.58M	111.92M	66.40M	44.71M	22.59M	1.22M
Gross Profit	118.82M	100.55M	59.91M	38.83M	8.39M	710.01K
EBITDA	22.78M	12.72M	23.33M	34.81M	349.41K	-476.74K
Net Income	-17.97M	-23.96M	9.52M	31.68M	997.41K	1.44M
Balance Sheet
Total Assets	856.51M	874.16M	331.83M	59.09M	5.29M	3.74M
Cash, Cash Equivalents and Short-Term Investments	43.76M	131.94M	27.84M	30.05M	2.60M	1.85M
Total Debt	361.04M	385.91M	141.74M	28.33M	1.05M	148.97K
Total Liabilities	420.93M	450.87M	167.76M	30.95M	29.23M	160.70K
Stockholders Equity	435.68M	424.15M	163.93M	27.25M	915.05K	2.08M
Cash Flow
Free Cash Flow	-273.44M	-209.62M	-64.71M	10.61M	1.12M	904.09K
Operating Cash Flow	-115.89M	-208.81M	-64.52M	10.69M	1.34M	904.09K
Investing Cash Flow	-8.69M	-4.96M	2.24M	-3.70M	-241.53K	-345.00M
Financing Cash Flow	259.73M	320.12M	57.82M	22.96M	-354.58K	-329.10K

Abacus Life Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 5.87 is below the 20-day moving average (MA) of 6.46, below the 50-day MA of 6.13, and below the 200-day MA of 7.03, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 36.14 is Neutral, neither overbought nor oversold. The STOCH value of 15.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABL.

Abacus Life Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNO	73 Outperform	3.88B	14.77	16.17%	1.65%	0.82%	-29.29%
BHF	71 Outperform	3.19B	6.02	7.82%	―	59.27%	―
GNW	67 Neutral	3.74B	20.59	3.52%	―	2.61%	465.03%
CIA	65 Neutral	287.40M	25.79	7.09%	―	-0.04%	-49.18%
ABL	59 Neutral	$568.01M	―	-0.34%	―	69.59%	38.07%
AAME	53 Neutral	59.15M	29.23	-4.28%	0.69%	6.98%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%