American Coastal Insurance (ACIC) AI Stock Analysis

• Market Cap: $624.68M
• Dividend Yield: N/A
• Average Volume (3M): 145.03K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.52
• Revenue Growth: 16.34%
• EPS Growth: -1.26%
• Country: US
• Employees: 65
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.61
• Shares Outstanding: 48,765,300
• 10 Day Avg. Volume: 117,144
• 30 Day Avg. Volume: 145,026
• PEG Ratio: -0.11
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 2.64
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: 2.61
• 1Y Price Target: $14.00
• Price Target Upside: 9.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $13.50 ▲(5.63% Upside)

American Coastal Insurance's strong earnings performance and undervaluation are key strengths, supported by positive technical indicators. However, historical financial volatility and current market challenges slightly temper the overall outlook.

Positive Factors

Revenue Growth

Consistent revenue and net income growth demonstrate strong market positioning and effective risk management, supporting long-term financial health.

New Market Initiatives

The introduction of new products in the assisted living market opens new growth avenues, leveraging existing distribution and underwriting strengths.

Strong Liquidity and Equity Growth

Robust liquidity and equity growth enhance financial stability and provide flexibility for strategic investments and risk management.

Negative Factors

Cash Flow Volatility

Volatile cash flow generation can impact liquidity and limit the company's ability to invest in growth opportunities or manage unexpected liabilities.

Decreased Pricing Environment

A softening pricing environment may pressure margins and profitability, challenging the company's ability to maintain its competitive edge.

Increased Policy Acquisition Costs

Rising acquisition costs can erode profitability, necessitating careful cost management to sustain long-term financial performance.

American Coastal Insurance Business Overview & Revenue Model

Company Description

American Coastal Insurance Corporation operates as a property and casualty insurance holding company that sources, writes, and services residential personal and commercial property, and casualty insurance policies in the United States. The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners. It also provides commercial multi-peril property insurance for residential condominium associations and apartments, as well as loss or damage to buildings, inventory, and equipment caused by fire, wind, hail, water, theft, and vandalism. In addition, the company offers equipment breakdown, identity theft, cyber security, and flood policies. The company markets and distributes its products through a network of independent agencies. The company was formerly known as United Insurance Holdings Corp. and changed its name to American Coastal Insurance Corporation in August 2023. American Coastal Insurance Corporation was founded in 1999 and is headquartered in Saint Petersburg, Florida.

How the Company Makes Money

American Coastal Insurance generates revenue primarily through the sale of insurance premiums. Customers pay these premiums in exchange for coverage against specific risks, and the company collects these payments upfront. The main revenue stream comes from underwriting insurance policies, where ACIC assesses risk and sets premium rates accordingly. Additionally, the company may earn income from investment activities, where it invests the collected premiums in various financial instruments until claims are made. Strategic partnerships with agents and brokers also contribute to revenue generation by expanding market reach and enhancing customer acquisition. Overall, ACIC's financial performance is influenced by factors such as claims experience, policy renewals, and the overall economic environment in coastal regions.

American Coastal Insurance Financial Statement Overview

Summary

American Coastal Insurance demonstrates strong profitability and operational efficiency in the TTM period, with notable improvements in margins and revenue growth. However, historical volatility in financial performance, particularly in cash flow and equity stability, suggests underlying risks that could impact future performance.

Income Statement

American Coastal Insurance shows a strong TTM performance with a net profit margin of 25.99% and a revenue growth rate of 2.55%. The EBIT and EBITDA margins are robust at 38.41% and 40.14% respectively, indicating efficient operations. However, historical volatility in revenue growth and profitability, including negative margins in previous years, suggests potential risks.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.47 in the TTM period, reflecting a balanced leverage strategy. Return on equity is strong at 30.54%, indicating effective use of equity. However, historical fluctuations in equity and negative equity in 2022 highlight potential stability concerns.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth at -79.59% in the TTM period, raising concerns about cash generation. The operating cash flow to net income ratio is low, suggesting challenges in converting income to cash. Historical cash flow volatility further underscores potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	327.78M	296.66M	263.68M	220.78M	228.69M	846.66M
Gross Profit	160.09M	156.35M	141.56M	43.68M	46.44M	2.34M
EBITDA	133.24M	122.52M	117.58M	34.48M	10.65M	-111.47M
Net Income	85.22M	75.72M	309.91M	-469.86M	-57.92M	-96.45M
Balance Sheet
Total Assets	1.18B	1.22B	1.06B	2.84B	2.70B	2.85B
Cash, Cash Equivalents and Short-Term Investments	382.97M	285.04M	334.46M	606.36M	875.63M	1.18B
Total Debt	152.46M	152.34M	149.46M	150.04M	158.50M	160.35M
Total Liabilities	851.63M	980.45M	891.62M	3.02B	2.37B	2.43B
Stockholders Equity	327.22M	235.66M	168.76M	-180.18M	312.41M	395.75M
Cash Flow
Free Cash Flow	120.27M	243.49M	-136.20M	-176.16M	-300.66M	-21.32M
Operating Cash Flow	120.38M	243.51M	-136.00M	-173.11M	-295.39M	-10.47M
Investing Cash Flow	988.00K	-179.21M	-2.54M	236.84M	251.38M	36.57M
Financing Cash Flow	-24.69M	-13.84M	26.77M	-25.39M	-12.21M	-11.65M

American Coastal Insurance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACIC, the sentiment is Positive. The current price of 12.78 is above the 20-day moving average (MA) of 12.13, above the 50-day MA of 12.01, and above the 200-day MA of 11.33, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 66.12 is Neutral, neither overbought nor oversold. The STOCH value of 93.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACIC.

American Coastal Insurance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACIC	73 Outperform	$624.68M	7.38	29.35%	―	16.34%	-1.26%
HRTG	72 Outperform	$898.60M	6.10	41.64%	―	5.92%	93.02%
UFCS	71 Outperform	$933.82M	8.63	13.21%	1.75%	12.22%	120.73%
UVE	69 Neutral	$930.94M	7.84	27.34%	2.31%	4.61%	73.40%
GBLI	68 Neutral	$402.36M	14.56	4.01%	5.00%	-0.04%	-33.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DGICA	62 Neutral	$730.38M	8.50	15.10%	3.49%	0.93%	224.95%

American Coastal Insurance Corporate Events

American Coastal Insurance Declares Special Cash Dividend

On December 1, 2025, American Coastal Insurance Corporation announced that its Board of Directors declared a special cash dividend of $0.75 per share of common stock. The dividend is set to be paid on January 9, 2026, to shareholders recorded by January 2, 2026. This announcement reflects the company’s strong financial position and commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors.

American Coastal Insurance Reports Strong Q3 2025 Results

On November 5, 2025, American Coastal Insurance Corporation reported its financial results for the third quarter ending September 30, 2025. The company experienced a 15.5% increase in consolidated net income compared to the same period in 2024, with total revenue rising by 10.1%. The company achieved a strong underwriting performance with a combined ratio of 57.8% for the quarter, outperforming its target. These results highlight American Coastal’s strategic positioning and focus on long-term value creation, even as market conditions begin to soften.