Allstate (ALL) AI Stock Analysis

• Market Cap: $53.61B
• Dividend Yield: 1.93%
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.46
• Revenue Growth: 9.81%
• EPS Growth: 94.71%
• Country: US
• Employees: 55,000
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Property & Casualty
• EPS (TTM): 5.94
• Shares Outstanding: 263,505,340
• 10 Day Avg. Volume: 1,267,306
• 30 Day Avg. Volume: 1,454,122
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 3.93
• Enterprise Value/Ebitda: 7.76
• 1Y Price Target: $230.87
• Price Target Upside: 13.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 82 Outperform
• Price Target: $240.00 ▲(17.97% Upside)

Allstate's strong financial performance and attractive valuation are the most significant factors driving the high stock score. Positive technical indicators and a favorable earnings call further support the outlook, despite some challenges in specific segments.

Positive Factors

Auto Insurance Profitability

Auto insurance profitability continues to advance, marking the eighth consecutive quarter of improved auto underwriting performance.

Growth in Homeowners Segment

Homeowners PIF grew sequentially by 14K, showing robust growth as Allstate manages its CAT exposures and reinsurance programs.

Second-Quarter Performance

Allstate’s second-quarter operating EPS of $5.94 beat consensus, driven by core loss ratio outperformance across both the auto and homeowners book.

Negative Factors

Catastrophe Losses

Allstate had pre-tax catastrophe losses of $184 million for the month of July.

Intensifying Competition

Intensifying competition causing sequential decline in Auto PIF for the month.

Retention Challenges

BMO's monthly PIF roll-forward math points to downside risk during 3Q unless retention improves quickly.

Allstate Business Overview & Revenue Model

Company Description

Allstate Corporation (ALL) is a leading American insurance company headquartered in Northfield Township, Illinois. It operates primarily in the property and casualty insurance sector, providing a wide range of insurance products including auto, home, renters, and life insurance. The company serves millions of customers across the United States and Canada through its extensive network of agents and digital platforms. Allstate is committed to offering financial services that help protect people from life's uncertainties and support them in their recovery from losses.

How the Company Makes Money

Allstate 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 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

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

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

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 Price: 203.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 203.45 is below the 20-day moving average (MA) of 205.35, above the 50-day MA of 198.86, and above the 200-day MA of 195.96, indicating a neutral trend. The MACD of 1.16 indicates Positive momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 13.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALL.

Allstate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRB	83 Outperform	$27.19B	16.32	20.63%	2.20%	11.41%	15.32%
ALL	82 Outperform	$53.61B	9.57	27.33%	1.93%	9.81%	94.71%
TRV	81 Outperform	$61.13B	12.01	19.29%	1.57%	8.54%	43.51%
PGR	80 Outperform	$144.83B	13.91	37.29%	1.98%	21.50%	51.86%
CB	78 Outperform	$109.67B	12.14	14.10%	1.35%	6.74%	-4.05%
CINF	78 Outperform	$24.02B	13.33	13.44%	2.19%	9.64%	-15.08%
Sector *	68 Neutral	$17.93B	11.86	10.28%	3.71%	9.75%	1.60%

Allstate Corporate Events

Allstate Releases June 2025 Catastrophe Loss Report

Allstate has released its June 2025 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 and its operational status.

Allstate Completes Sale of Group Health Business

On July 1, 2025, Allstate announced the completion of the sale of its group health business, a move that was previously disclosed. This transaction marks a significant shift in Allstate’s operational focus, potentially impacting its market positioning and stakeholder interests.

Allstate Reports May 2025 Catastrophe Losses

In May 2025, Allstate released its monthly report detailing estimated catastrophe losses and the number of policies in force. This announcement is significant as it provides insights into the company’s financial health and operational resilience, which are crucial for stakeholders assessing Allstate’s market positioning and future prospects.

Allstate Holds Annual Stockholders Meeting on Governance

On May 29, 2025, Allstate held its annual stockholders meeting, where key decisions were made regarding the company’s governance and financial oversight. Thirteen directors were elected for terms expiring at the 2026 meeting, and the compensation of named executives was approved by a majority vote. Additionally, Deloitte & Touche LLP was ratified as the independent registered public accountant for 2025, reflecting continued confidence in their financial auditing capabilities.