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American Coastal Insurance (ACIC)
NASDAQ:ACIC
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American Coastal Insurance
(NASDAQ:ACIC)
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Rating:70Outperform
Price Target:
$12.00
▲(7.72% Upside)
American Coastal Insurance's strong earnings performance and undervaluation are the most significant factors driving the score. The company's recovery trajectory and positive technical indicators further support a favorable outlook. However, historical financial volatility and operational challenges require ongoing attention.
American Coastal Insurance (ACIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$542.76M
Dividend YieldN/A
Average Volume (3M)205.62K
Price to Earnings (P/E)6.7
Beta (1Y)0.59
Revenue Growth23.68%
EPS Growth16.14%
CountryUS
Employees65
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.54
Shares Outstanding48,765,300
10 Day Avg. Volume145,848
30 Day Avg. Volume205,621
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue2.20
Enterprise Value/Gross Profit4.87
Enterprise Value/Ebitda5.96
Forecast
1Y Price Target
$14.00Price Target Upside25.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
American Coastal Insurance Business Overview & Revenue Model
Company DescriptionAmerican 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 MoneyAmerican Coastal Insurance generates revenue primarily through the sale of insurance premiums. Customers pay premiums for policies that provide coverage against various risks, including property damage from natural disasters, liability claims, and other associated risks. The company underwrites these policies, meaning it assesses the risk of insuring each client and sets premium rates accordingly. Additionally, ACIC may earn investment income from the reserves it holds to pay future claims, as well as from reinsurance arrangements that help mitigate risk exposure. Partnerships with local agents and brokers also contribute to revenue, as these entities help distribute ACIC's products to a broader customer base, enhancing market reach and driving sales.
American Coastal Insurance Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with notable revenue and earnings growth, a positive reinsurance program renewal, and an upgrade to investment-grade status. However, the company faces challenges with decreasing property insurance rates and increased operating costs. Despite these challenges, the positive aspects of the call outweigh the lowlights.Q2-2025 Updates
Positive Updates
Significant Revenue and Earnings Growth
American Coastal reported a 26% year-over-year increase in revenues and a 51% growth in pretax earnings, demonstrating strong financial performance for the quarter.
Core Return on Equity
The company achieved an impressive core return on equity of approximately 42%.
Policy Growth and Improved Financial Position
Policies in-force grew by 10% since year-end, and total insured value increased by 18% to $69.8 billion as of June 30.
Reinsurance Program and Cost Efficiency
Completed the core catastrophe reinsurance program renewal with a risk-adjusted cost decrease of approximately 12.4%.
Investment Grade Status
Kroll Bond Rating Agency upgraded American Coastal Insurance Corporation to BBB minus, moving outlooks from Stable to Positive, which reduced the interest rate on senior notes by 100 basis points.
Strong Liquidity and Equity Position
Cash and investments grew by 34.3% since year-end to $726.2 million, and stockholders' equity increased by 24% to $292.3 million.
Negative Updates
Decreasing Property Insurance Rates
While the Florida market remains relatively healthy, property insurance rates continue to fall in most territories, requiring careful monitoring of terms and conditions.
Increased Operating Costs
Operating costs increased by $6.2 million, driven by a $10.3 million or 74.8% increase in policy acquisition costs, partially offset by a $4.1 million or 34.5% decrease in general and administrative expenses.
Company Guidance
During the American Coastal Insurance Corporation's second-quarter earnings call for fiscal year 2025, the company reported a 26% year-over-year increase in revenues and a 51% rise in pretax earnings, achieving a core return on equity of approximately 42%. The company's policies in force grew by roughly 10% since year-end, with the total insured value increasing by 18% to $69.8 billion as of June 30. The renewal of their core catastrophe reinsurance program led to a risk-adjusted cost decrease of 12.4%. American Coastal's net income for the quarter was $26.4 million, while core income saw a $7.2 million year-over-year increase. The combined ratio improved to 60.6%, and the company maintained a strong liquidity position with cash and investments growing by 34.3% since year-end to $726.2 million. The company's book value per share rose by 22.7% from year-end 2024. The Kroll Bond Rating Agency recently upgraded the company to BBB minus, moving their outlook from Stable to Positive.American Coastal Insurance Financial Statement Overview
Summary
American Coastal Insurance shows a recovery trajectory with improving profitability and cash flow. Despite historical volatility in revenue and profitability, the company demonstrates potential for stabilization. The balance sheet indicates moderate leverage, but declining equity ratios warrant caution.Income Statement
American Coastal Insurance has shown a volatile revenue trend with a significant decline from 2020 to 2022, followed by a recovery in 2023 and 2024. The gross profit margin remains strong at 100%, but the net profit margin has been inconsistent, with a notable improvement in 2024. EBIT and EBITDA margins have fluctuated, indicating operational challenges.55
Neutral
Balance Sheet
The company maintains a moderate debt-to-equity ratio, reflecting a balanced approach to leverage. However, the equity ratio has been declining, suggesting increased liabilities relative to assets. Return on equity has improved recently, but historical performance shows volatility, indicating potential risks in financial stability.60
Neutral
Cash Flow
Cash flow from operations has improved significantly in 2024, turning positive after negative figures in previous years. Free cash flow has also shown a positive trend, enhancing liquidity. However, the operating cash flow to net income ratio indicates variability, reflecting potential cash management challenges.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 320.07M | 296.66M | 286.54M | 221.67M | 228.69M | 846.66M |
| Gross Profit | 144.58M | 156.35M | 286.54M | 44.57M | 46.44M | 846.66M |
| EBITDA | 118.21M | 113.66M | 107.69M | 1.95M | 10.32M | -111.81M |
| Net Income | -62.56M | 75.72M | 309.91M | -468.00M | -57.92M | -96.45M |
Balance Sheet | ||||||
| Total Assets | 920.47M | 1.22B | 1.06B | 2.84B | 2.70B | 2.85B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 834.50M | 334.46M | 606.36M | 875.63M | 1.18B |
| Total Debt | 152.44M | 152.34M | 149.46M | 150.04M | 158.50M | 160.35M |
| Total Liabilities | 628.17M | 980.45M | 891.62M | 3.02B | 2.37B | 2.43B |
| Stockholders Equity | 292.30M | 235.66M | 168.76M | -180.18M | 312.41M | 395.75M |
Cash Flow | ||||||
| Free Cash Flow | 146.90M | 243.49M | -136.20M | -176.16M | -300.66M | -21.32M |
| Operating Cash Flow | 147.01M | 243.51M | -136.00M | -173.11M | -295.39M | -10.47M |
| Investing Cash Flow | 3.36M | -179.21M | -2.54M | 236.84M | 251.38M | 36.57M |
| Financing Cash Flow | -24.52M | -13.84M | 26.77M | -25.39M | -12.21M | -11.65M |
American Coastal Insurance Technical Analysis
Positive
11.14
Price Trends
10.80
Positive
10.90
Positive
11.54
Negative
Market Momentum
0.08
Positive
53.90
Neutral
36.77
Neutral
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 11.14 is above the 20-day moving average (MA) of 11.01, above the 50-day MA of 10.80, and below the 200-day MA of 11.54, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 36.77 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | 771.41M | 7.18 | 21.16% | ― | 9.35% | 77.04% | |
79 Outperform | 807.33M | 8.85 | 7.93% | 2.02% | 14.28% | 148.61% | |
72 Outperform | 716.46M | 10.80 | 15.79% | 3.04% | 5.64% | -17.95% | |
70 Outperform | $542.76M | 6.75 | 31.54% | ― | 23.68% | 16.14% | |
69 Neutral | 683.42M | 7.99 | 9.32% | 3.71% | 3.40% | 978.24% | |
66 Neutral | 424.96M | 15.14 | 6.27% | 4.71% | -3.71% | -21.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
ACIC
American Coastal Insurance
11.14
0.20
1.83%
DGICA
Donegal Group
19.51
6.01
44.52%
GBLI
Global Indemnity
29.86
-1.56
-4.96%
UFCS
United Fire Group
32.50
11.92
57.92%
UVE
Universal Insurance Holdings
25.71
4.58
21.68%
HRTG
Heritage Insurance Holdings
25.43
9.77
62.39%
American Coastal Insurance Corporate Events
Business Operations and StrategyFinancial Disclosures
American Coastal Insurance Reports Strong Q2 2025 Results
Positive
Aug 6, 2025
American Coastal Insurance Corporation reported its financial results for the second quarter ended June 30, 2025, showing significant year-over-year growth in total revenue and underwriting profit. The company continues to gain market share in the commercial residential segment, which underscores its competitive strength in the industry.
The most recent analyst rating on (ACIC) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on American Coastal Insurance stock, see the ACIC Stock Forecast page.
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.