Allstate (ALL) AI Stock Analysis

• Market Cap: $53.64B
• Dividend Yield: 1.95%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.37
• Revenue Growth: 7.07%
• EPS Growth: 100.42%
• Country: US
• Employees: 55,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 11.17
• Shares Outstanding: 261,681,700
• 10 Day Avg. Volume: 1,938,408
• 30 Day Avg. Volume: 1,661,854
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 5.84
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 3.69
• Enterprise Value/Ebitda: 5.79
• 1Y Price Target: $241.93
• Price Target Upside: 18.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 29.05
• Revenue Forecast (FY): $58.92B

• Rating: 74 Outperform
• Price Target: $225.00 ▲(9.76% Upside)

Allstate's strong financial performance and positive earnings call sentiment are the most significant factors driving the stock score. The company's strategic initiatives and robust revenue growth are notable strengths. However, technical analysis indicates bearish trends, and challenges in specific segments could impact future stability. The valuation suggests the stock is undervalued, adding to its attractiveness.

Positive Factors

Revenue Growth

Significant revenue growth and an increase in policies highlight Allstate's expanding market reach and product adoption, supporting long-term business stability.

Investment Income

The increase in investment income strengthens Allstate's financial position, providing a reliable income stream that enhances cash generation and financial resilience.

Technological Innovation

Adopting AI and developing ALLIE improves operational efficiency and customer service, positioning Allstate for future growth and competitive advantage.

Negative Factors

Regulatory Challenges

Regulatory hurdles in key markets can limit Allstate's ability to expand its product offerings, potentially impacting growth and market share.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, which could affect Allstate's profitability and competitive positioning over time.

Increased Claims

Rising claims in protection plans can strain profitability and cash flow, challenging Allstate's ability to maintain margins and financial health.

Allstate Business Overview & Revenue Model

Company Description

Allstate Corporation is a leading American insurance provider, primarily engaged in the property and casualty insurance sectors. Founded in 1931, the company offers a wide range of insurance products, including auto, home, renters, and life insurance, as well as investment products. Allstate operates through various segments, including the Allstate Protection segment, which provides personal lines insurance, and the Allstate Investments segment, which manages the company's investment portfolio.

How the Company Makes Money

Allstate generates revenue primarily through its insurance premiums collected from policyholders. The company uses a model where it assesses risk and sets premium prices accordingly, allowing it to earn income from underwriting insurance policies. Additionally, Allstate invests a significant portion of the premium income in various securities and assets, generating investment income. Key revenue streams include auto insurance, homeowner's insurance, and life insurance premiums. The company also earns fees from services related to insurance products and has partnerships with various financial institutions for cross-selling opportunities, enhancing its overall revenue generation.

Allstate Financial Statement Overview

Summary

Allstate demonstrates strong financial health with significant revenue growth and improved profitability. The balance sheet is stable with prudent leverage, and cash flow generation is robust. However, attention should be paid to the declining gross profit margin, which could impact future profitability.

Income Statement

Allstate's income statement shows strong performance with a significant revenue growth rate of 85.9% in the TTM period, indicating robust expansion. The net profit margin improved to 12.62%, reflecting enhanced profitability. However, the gross profit margin decreased compared to previous years, suggesting potential cost pressures.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio of 0.29, indicating prudent leverage. Return on equity is impressive at 35.27%, showcasing effective use of equity to generate profits. The equity ratio stands at 22.84%, reflecting a stable financial structure. However, the decrease in gross profit margin could be a concern for future profitability.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 114.8% in the TTM period, highlighting excellent cash generation capabilities. The free cash flow to net income ratio is high at 97.86%, indicating efficient conversion of income into cash. However, the operating cash flow to net income ratio is not available, which limits a complete assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.21B	63.52B	56.59B	50.62B	48.68B	41.69B
Gross Profit	18.22B	14.50B	7.17B	5.68B	12.03B	13.03B
EBITDA	11.62B	6.72B	735.00M	-648.00M	7.88B	7.81B
Net Income	8.38B	4.67B	-188.00M	-1.29B	1.61B	5.58B
Balance Sheet
Total Assets	120.40B	111.62B	103.36B	97.99B	99.44B	125.99B
Cash, Cash Equivalents and Short-Term Investments	9.67B	5.24B	5.87B	4.91B	4.77B	7.12B
Total Debt	8.09B	8.09B	7.94B	7.96B	7.98B	7.83B
Total Liabilities	92.91B	90.25B	85.73B	80.63B	74.31B	95.77B
Stockholders Equity	27.50B	21.44B	17.77B	17.49B	25.18B	30.22B
Cash Flow
Free Cash Flow	8.64B	8.72B	3.96B	4.70B	4.77B	5.18B
Operating Cash Flow	8.83B	8.93B	4.23B	5.12B	5.12B	5.49B
Investing Cash Flow	-6.98B	-8.25B	-3.00B	-1.73B	510.00M	-3.44B
Financing Cash Flow	-1.85B	-697.00M	-1.24B	-3.42B	-5.24B	-2.01B

Allstate Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 205.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALL, the sentiment is Neutral. The current price of 205 is below the 20-day moving average (MA) of 207.75, above the 50-day MA of 202.69, and above the 200-day MA of 200.31, indicating a neutral trend. The MACD of 0.52 indicates Positive momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 51.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALL.

Allstate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CB	80 Outperform	$122.24B	12.97	14.06%	1.23%	6.68%	-1.78%
HIG	78 Outperform	$38.74B	11.36	20.07%	1.55%	7.11%	22.52%
PGR	78 Outperform	$131.52B	12.29	34.23%	2.20%	18.35%	32.36%
TRV	78 Outperform	$65.34B	11.52	19.81%	1.49%	6.75%	30.83%
CINF	76 Outperform	$26.10B	12.45	14.53%	2.04%	-0.63%	-30.68%
ALL	74 Outperform	$53.64B	6.64	34.63%	1.95%	7.07%	100.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Allstate Corporate Events

Allstate Announces New Lead Director Appointment

Gregg M. Sherrill, who has been a member of the board of directors of Allstate since 2017 and served as the board’s Lead Director since 2021, will retire effective November 21, 2025. Richard T. Hume, a board member since 2020, will take over as Lead Director on the same date. Sherrill’s retirement is not due to any disagreement with the company.

Allstate Releases October 2025 Catastrophe Loss Update

In October 2025, Allstate released its monthly update detailing estimated catastrophe losses and the number of policies in force, which is available on their investor website. This announcement provides stakeholders with crucial information on the company’s financial health and operational status, reflecting its ongoing risk management and market positioning efforts.

Allstate Reports September 2025 Catastrophe Losses

Allstate has announced its estimated catastrophe losses and policies in force for September 2025. This release provides insights into the company’s financial performance and operational impact, reflecting its ongoing commitment to transparency with stakeholders.

Allstate Announces Major Leadership Changes Effective October 2025

Allstate Corporation announced significant changes to its senior leadership team, effective October 1, 2025. Mario Rizzo will become the Chief Operating Officer, Jesse E. Merten will succeed him as President of Property-Liability, and John E. Dugenske will serve as interim Chief Financial Officer while maintaining his role as President of Investments and Corporate Strategy. These leadership changes are expected to impact the company’s operations and strategic direction, with adjustments in executive compensation reflecting their new roles.

Allstate Reports August 2025 Catastrophe Losses

In August 2025, Allstate released its monthly report detailing estimated catastrophe losses and policies in force, which is available on their investor website. This announcement provides stakeholders with insights into the company’s financial impact from recent events, potentially affecting its market positioning and operational strategies.