American Coastal Insurance (ACIC)
NASDAQ:ACIC
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American Coastal Insurance
(NASDAQ:ACIC)
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Rating:70Outperform
Price Target:
$12.50
▲(6.56% Upside)
Action:UpgradedDate:03/03/26
ACIC’s score is driven primarily by improving profitability and a very attractive valuation (low P/E and high dividend yield). Technicals are supportive with price above key moving averages. The main offset is financial quality risk from highly volatile cash flows, plus earnings-call risks tied to softer premium trends and execution/timing uncertainty around growth initiatives.
Positive Factors
Underwriting Profitability
Sustained low combined ratios indicate disciplined underwriting and favorable loss trends, which support recurring underwriting profitability. Persistently sub‑target underlying ratios reduce capital strain from losses and improve the company's ability to fund growth and reinsurance over multiple cycles.
Negative Factors
Volatile Cash Generation
Sharp year-to-year cash flow swings reduce predictability of internal funding for reinsurance, debt reduction, or buybacks. Negative free cash flow in 2025 constrains capital allocation, increases reliance on external financing or asset sales, and raises refinancing risk around the 2027 debt maturity.
Read all positive and negative factors
Positive Factors
Negative Factors
Underwriting Profitability
Sustained low combined ratios indicate disciplined underwriting and favorable loss trends, which support recurring underwriting profitability. Persistently sub‑target underlying ratios reduce capital strain from losses and improve the company's ability to fund growth and reinsurance over multiple cycles.
Read all positive factors
American Coastal Insurance (ACIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$570.74M
Dividend YieldN/A
Average Volume (3M)145.03K
Price to Earnings (P/E)5.7
Beta (1Y)0.57
Revenue Growth16.34%
EPS Growth-1.26%
CountryUS
Employees65
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.52
Shares Outstanding48,656,204
10 Day Avg. Volume117,144
30 Day Avg. Volume145,026
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)1.93
Price to Sales (P/S)1.83
P/FCF Ratio8.64
Enterprise Value/Market Cap-0.54
Enterprise Value/Revenue-0.92
Enterprise Value/Gross Profit-1.44
Enterprise Value/Ebitda-1.86
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.49
Revenue Forecast (FY)$586.25M
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...
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 c...
American Coastal Insurance Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized strong underwriting performance, profitability above guidance, materially improved liquidity and book value, and strategic initiatives (E&S expansion and partnerships). These positives were tempered by a 19% year-over-year decline in premiums written driven by a softer, more competitive market and falling rates, some increases in operating costs, and execution/timing risks related to ACES and future reinsurance dynamics. Management stressed discipline, capital-return flexibility, and plans to deleverage, while acknowledging potential margin pressure if cost reductions do not keep pace with rate declines.Positive Updates
Full-Year Profit Above Guidance
Net income for fiscal 2025 was $106.8 million, exceeding the company's guidance range of $70 million to $90 million. Core income for the year was $103.7 million (up $26.8 million year-over-year).
Negative Updates
Year-over-Year Written Premium Decline
Premiums written declined about 19% year-over-year, primarily driven by falling rates in the market (notably due to Florida legislative reforms) and deliberate selectivity in underwriting.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Profit Above Guidance
Net income for fiscal 2025 was $106.8 million, exceeding the company's guidance range of $70 million to $90 million. Core income for the year was $103.7 million (up $26.8 million year-over-year).
Read all positive updates
Company Guidance
Management reiterated that 2025 finished ahead of plan — full‑year net income $106.8M (vs. initial guidance $70–90M) and net premiums earned $306.8M (vs. guidance $290–320M) — and provided a framework for 2026: they said they’ve given “solid” revenue guidance (no specific 2026 dollar figure on the call) and expect ACES to contribute 5% or less of 2026 revenues, with the AmRisc quota‑share expected to generate roughly $100M of full‑year premiums; Q4 net income was $26.6M and core income $25.8M (up $19.8M YoY driven by a $20.5M reduction in incurred losses from last year’s Hurricane Milton), Q4 combined ratio 58.6% (FY 60.1%), underlying combined ratio Q4 58.9% (down 7 pts YoY) and FY underlying 61.5% (below their 65% target), premiums written rebounded ~59% QoQ but were down ~19% YoY, cash & investments grew 19.8% to $647.7M, stockholders’ equity rose 34.8% to $317.6M with book value per share $6.51 (up 33.2%), a $0.75/share special dividend totaling $36.6M was declared, debt‑to‑total‑capital was 32% (long‑term target ~25%) and management said they’d likely reduce total debt by $50–75M when refinancing in 2027.American Coastal Insurance Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 335.44M | 296.66M | 263.68M | 220.78M | 228.69M |
| Gross Profit | 289.40M | 156.35M | 141.56M | 43.68M | 46.44M |
| EBITDA | 174.15M | 122.52M | 117.58M | 34.48M | 10.65M |
| Net Income | 106.84M | 75.72M | 309.91M | -469.86M | -57.92M |
Balance Sheet | |||||
| Total Assets | 834.83M | 1.22B | 1.06B | 2.84B | 2.70B |
| Cash, Cash Equivalents and Short-Term Investments | 1.96B | 285.04M | 334.46M | 606.36M | 875.63M |
| Total Debt | 155.62M | 152.34M | 149.46M | 150.04M | 158.50M |
| Total Liabilities | 517.26M | 980.45M | 891.62M | 3.02B | 2.37B |
| Stockholders Equity | 317.56M | 235.66M | 168.76M | -180.18M | 312.41M |
Cash Flow | |||||
| Free Cash Flow | 70.87M | 243.49M | -136.20M | -176.16M | -300.66M |
| Operating Cash Flow | 71.03M | 243.51M | -136.00M | -173.11M | -295.39M |
| Investing Cash Flow | 620.00K | -179.21M | -2.54M | 236.84M | 251.38M |
| Financing Cash Flow | -1.08M | -13.84M | 26.77M | -25.39M | -12.21M |
American Coastal Insurance Technical Analysis
Positive
11.73
Price Trends
11.24
Positive
11.33
Positive
10.93
Positive
Market Momentum
0.02
Negative
60.94
Neutral
87.37
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 11.73 is above the 20-day moving average (MA) of 11.28, above the 50-day MA of 11.24, and above the 200-day MA of 10.93, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.94 is Neutral, neither overbought nor oversold. The STOCH value of 87.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACIC.
American Coastal Insurance Risk Analysis
American Coastal Insurance disclosed 30 risk factors in its most recent earnings report. American Coastal Insurance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Coastal Insurance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.01B | 6.27 | 13.50% | 1.73% | 12.22% | 120.73% | |
79 Outperform | $986.73M | 5.15 | 37.99% | 2.18% | 4.61% | 73.40% | |
79 Outperform | $831.31M | 4.62 | 47.28% | ― | 5.92% | 93.02% | |
70 Outperform | $570.74M | 5.73 | 35.67% | ― | 16.34% | -1.26% | |
69 Neutral | $653.04M | 7.74 | 12.91% | 3.51% | 0.93% | 224.95% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $398.31M | 15.90 | 3.63% | 5.01% | -0.04% | -33.45% |
* Financial Sector Average
ACIC
American Coastal Insurance
11.47
1.05
10.06%
DGICA
Donegal Group
17.30
0.02
0.11%
GBLI
Global Indemnity
27.83
-0.71
-2.48%
UFCS
United Fire Group
39.14
13.45
52.33%
UVE
Universal Insurance Holdings
34.39
12.92
60.19%
HRTG
Heritage Insurance Holdings
26.16
9.93
61.18%
American Coastal Insurance Corporate Events
Business Operations and StrategyExecutive/Board Changes
American Coastal Insurance Announces Board Change and New Underwriting Chief
Positive
Feb 20, 2026
On February 17, 2026, American Coastal Insurance said long‑time director Sherrill W. Hudson informed the company he would not seek re‑election when his term ends at the 2026 annual meeting, though his departure was not due to any disag...
Business Operations and StrategyFinancial Disclosures
American Coastal Posts Strong Q4 2025 Earnings Growth
Positive
Feb 19, 2026
On February 19, 2026, American Coastal Insurance Corporation reported its financial results for the fourth quarter and full year ended December 31, 2025, showing consolidated net income of $26.6 million for the quarter and $106.8 million, or $2.15...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
American Coastal Insurance unveils nationwide E&S expansion strategy
Positive
Jan 14, 2026
In January 2026, American Coastal Insurance Corporation outlined a strategic expansion of its operations beyond Florida’s admitted market by assuming a 6% net quota share of AmRisc’s nationwide excess and surplus (ES) commercial proper...
Business Operations and Strategy
American Coastal Insurance Renews Catastrophe Reinsurance Agreements
Positive
Jan 7, 2026
Effective January 1, 2026, American Coastal Insurance Corporation renewed its all other perils catastrophe excess of loss agreement, securing up to $95.6 million of occurrence limit above a $10 million attachment point for catastrophe events other...
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.