Allstate (ALL) AI Stock Analysis

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Allstate

(NYSE:ALL)

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Outperform 77 (OpenAI - 4o)

Rating:77Outperform

Price Target:

$233.00

▲(11.26% Upside)

Allstate's strong financial performance and positive earnings call are the most significant factors driving the score. The company's attractive valuation further supports the stock's potential. Technical analysis presents mixed signals, but the overall outlook remains positive.

Positive Factors

Revenue Growth

The consistent revenue growth reflects Allstate's ability to expand its market presence and product offerings, supporting long-term business sustainability.

Protection Services Expansion

Growth in Protection Services, driven by appliance protection and international expansion, indicates a successful diversification strategy and potential for future revenue streams.

Strong Investment Portfolio

A robust investment portfolio provides Allstate with stable income and financial flexibility, enhancing its ability to weather economic fluctuations and invest in growth opportunities.

Negative Factors

Catastrophe Losses Impact

Significant catastrophe losses can pressure Allstate's profitability and strain resources, potentially affecting its ability to maintain competitive pricing and margins.

Inactive Brands Dragging Growth

The decline of inactive brands like Esurance and Encompass can hinder Allstate's growth in key segments, requiring strategic adjustments to optimize brand portfolio.

Regulatory Challenges

Delays in regulatory approvals can impede Allstate's market expansion and product rollout, affecting its competitive position and growth potential in key regions.

Allstate (ALL) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$54.40B

Dividend Yield1.87%

Average Volume (3M)1.38M

Price to Earnings (P/E)9.7

Beta (1Y)0.43

Revenue Growth9.81%

EPS Growth94.71%

CountryUS

Employees55,000

SectorFinancial

Sector Strength70

IndustryInsurance - Property & Casualty

Share Statistics

EPS (TTM)5.94

Shares Outstanding263,505,340

10 Day Avg. Volume1,670,689

30 Day Avg. Volume1,379,512

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 Cap1.18

Enterprise Value/Revenue0.97

Enterprise Value/Gross Profit3.93

Enterprise Value/Ebitda7.76

Forecast

1Y Price Target

$229.18

Price Target Upside9.44% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering19

Allstate Business Overview & Revenue Model

Company DescriptionThe Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. The company operates through Allstate Protection; Protection Services; Allstate Health and Benefits; and Run-off Property-Liability segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance; other personal lines products, such as renter, condominium, landlord, boat, umbrella, and manufactured home and stand-alone scheduled personal property; and commercial lines products under the Allstate and Encompass brand names. The Protection Services segment provides consumer product protection plans and related technical support for mobile phones, consumer electronics, furniture, and appliances; finance and insurance products, including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel, and paint and fabric protection; roadside assistance; device and mobile data collection services; data and analytic solutions using automotive telematics information; and identity protection services. This segment offers its products under various brands including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside Services, Arity, and Allstate Identity Protection. The Allstate Health and Benefits provides life, accident, critical illness, short-term disability, and other health insurance products. The Run-off Property-Liability offers property and casualty insurance. It sells its products through call centers, agencies, financial specialists, independent agents, brokers, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is based in Northbrook, Illinois.

How the Company Makes MoneyAllstate generates revenue primarily through the sale of insurance premiums from its various products, particularly in auto and home insurance. The company collects premiums upfront from policyholders, which are then invested in a diversified portfolio of assets to generate investment income. Key revenue streams include underwriting profits from the difference between premiums collected and claims paid out, as well as investment income from its investment portfolio. Additionally, Allstate has partnerships with various agents and brokers, which help expand its market reach and customer base. The company also engages in risk management strategies and offers financial products, such as retirement and savings solutions, further contributing to its earnings.

Allstate Key Performance Indicators (KPIs)

Any

Property-Liability Premiums

Property-Liability Premiums
Shows the revenue generated from property and liability insurance, highlighting the company's core business strength and pricing strategy effectiveness.

Chart InsightsAllstate's property-liability premiums have shown consistent growth, with a notable surge in 2024 and 2025. This aligns with the company's strategic expansion in auto and homeowners insurance across multiple states, as highlighted in their earnings call. Despite challenges from catastrophe losses in the homeowners segment, the overall positive momentum is driven by a 21% increase in new business and a robust growth strategy. The earnings call underscores a strong revenue trajectory and significant policy growth, reinforcing Allstate's competitive positioning in the market.

Data provided by:

Main Street Data

Allstate Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Positive

Allstate demonstrated strong financial performance with significant growth in revenues, net income, and return on equity. The company reported substantial growth in its Protection Services and investment portfolio. However, challenges such as catastrophe losses impacting homeowners insurance, the decline of inactive brands, and regulatory delays in key markets were notable concerns.

Q2-2025 Updates

Positive Updates

Revenue and Policy Growth

Allstate reported revenues of $16.6 billion, a 5.8% increase compared to the second quarter of 2024. Total policies in force increased by $208 million, up 4.2% over the prior year.

Net Income and Return on Equity

Net income was $2.1 billion with an adjusted net income of $1.6 billion or $5.94 per diluted share. The adjusted net income return on equity was 28.6% over the trailing 12 months.

Protection Services Growth

Protection Services generated $867 million in revenue with a 16.6% increase over the prior year quarter, driven by growth in appliance protection and international expansion.

Strong Investment Portfolio Performance

Investment income was $754 million for the quarter, with a total return of 1.4% for the quarter and 5.4% for the last 12 months.

Improved Auto and Homeowners Insurance Results

Auto insurance combined ratio improved to 86%, a 9.9 point improvement from the second quarter of 2024. Homeowners insurance saw a combined ratio of 102 due to catastrophe losses, but underlying margins remained strong.

Capital Management and Shareholder Returns

Allstate completed divestitures for $3.25 billion and returned capital to shareholders through $1.1 billion of dividends and $445 million in share repurchases.

Negative Updates

Catastrophe Losses Impact on Homeowners

Homeowners insurance combined ratio was impacted by $1.6 billion in catastrophe losses.

Inactive Brands Dragging on Growth

The inactive brands Esurance and Encompass continue to decline, creating a drag on growth in auto and homeowners insurance.

Challenges in Regulatory Approval

Pending regulatory approvals in New York and New Jersey for new insurance products have delayed growth in these markets.

Company Guidance

During Allstate's Second Quarter 2025 Earnings Conference Call, the management provided an optimistic outlook with a focus on transformative growth and shareholder value creation. Key metrics highlighted included a 5.8% increase in revenues to $16.6 billion, a 4.2% rise in total policies in force to 208 million, and a net income of $2.1 billion. Adjusted net income stood at $1.6 billion or $5.94 per diluted share, with an impressive return on equity of 28.6%. The company reported 10.8 million new policies over the last 12 months, with significant growth in the direct sales and independent agent channels. Allstate's investment portfolio, valued at $77 billion, yielded a total return of 1.4% for the quarter. Moreover, the company repurchased $445 million in common stock and paid $1.1 billion in dividends over the past year. The Property-Liability segment delivered nearly $1.3 billion in underwriting income, with a combined ratio of 91.1%, while the Protection Services segment reported $867 million in quarterly revenue, marking a 16.6% year-over-year increase.

Allstate Financial Statement Overview

Summary

Allstate demonstrates solid financial performance with strong profitability and growth in the income statement, a stable balance sheet with low leverage, and excellent cash generation capabilities. However, there are areas for improvement, such as the gross profit margin and missing equity ratio data.

Income Statement

Positive

Allstate's income statement shows a strong recovery with a TTM revenue growth rate of 1.37% and a net profit margin of 8.79%. The company has improved its profitability significantly from previous years, with a notable increase in EBIT and EBITDA margins. However, the gross profit margin has decreased compared to previous periods, indicating potential cost pressures.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.34 in the TTM period, indicating prudent leverage management. Return on equity has improved to 26.35%, showcasing effective use of equity to generate profits. However, the equity ratio is not provided, which limits a full assessment of asset financing.

Cash Flow

Positive

Allstate's cash flow statement is robust, with a strong free cash flow growth rate of 8.21% in the TTM period. The operating cash flow to net income ratio is not provided, but the free cash flow to net income ratio is high at 97.50%, indicating efficient cash generation relative to net income. This strong cash flow performance supports the company's financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.21B	64.11B	57.09B	51.60B	50.65B	41.93B
Gross Profit	16.28B	15.10B	7.67B	6.66B	14.01B	13.27B
EBITDA	8.24B	6.72B	735.00M	-648.00M	7.88B	7.81B
Net Income	5.82B	4.67B	-188.00M	-1.29B	1.61B	5.58B
Balance Sheet
Total Assets	115.89B	111.62B	103.36B	97.99B	99.44B	125.99B
Cash, Cash Equivalents and Short-Term Investments	10.63B	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	91.89B	90.25B	85.73B	80.63B	74.31B	95.77B
Stockholders Equity	24.02B	21.44B	17.77B	17.49B	25.18B	30.22B
Cash Flow
Free Cash Flow	8.54B	8.72B	3.96B	4.70B	4.77B	5.18B
Operating Cash Flow	8.74B	8.93B	4.23B	5.12B	5.12B	5.49B
Investing Cash Flow	-6.86B	-8.25B	-3.00B	-1.73B	510.00M	-3.44B
Financing Cash Flow	-1.40B	-697.00M	-1.24B	-3.42B	-5.24B	-2.01B

Allstate Technical Analysis

Technical Analysis Sentiment

Positive

Last Price209.41

Price Trends

50DMA

201.66

Positive

100DMA

200.53

Positive

200DMA

196.38

Positive

Market Momentum

MACD

1.04

Negative

RSI

61.77

Neutral

STOCH

93.97

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALL, the sentiment is Positive. The current price of 209.41 is above the 20-day moving average (MA) of 202.79, above the 50-day MA of 201.66, and above the 200-day MA of 196.38, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 61.77 is Neutral, neither overbought nor oversold. The STOCH value of 93.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALL.

Allstate Risk Analysis

Allstate disclosed 2 risk factors in its most recent earnings report. Allstate reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Allstate Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRV	81 Outperform	62.29B	12.22	17.77%	1.55%	8.54%	43.51%
HIG	80 Outperform	37.07B	11.95	18.52%	1.58%	7.67%	15.99%
CB	80 Outperform	110.94B	12.17	13.25%	1.35%	6.74%	-4.05%
PGR	78 Outperform	140.69B	13.43	32.00%	2.04%	21.50%	51.86%
CINF	78 Outperform	24.16B	13.40	12.73%	2.21%	9.64%	-15.08%
ALL	77 Outperform	$54.40B	9.71	27.33%	1.87%	9.81%	94.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

ALL

Allstate

209.41

24.30

13.13%

Chubb

278.26

-7.76

-2.71%

CINF

Cincinnati Financial

154.52

22.66

17.18%

HIG

Hartford Financial

131.85

17.25

15.05%

PGR

Progressive

240.00

-7.33

-2.96%

TRV

Travelers Companies

276.66

44.45

19.14%

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.Date of analysis: Sep 19, 2025