American Overseas Group (AOREF) AI Stock Analysis

• Market Cap: $42.38M
• Dividend Yield: N/A
• Average Volume (3M): 1.00
• Price to Earnings (P/E): 3.8
• Beta (1Y): -0.23
• Revenue Growth: 38.44%
• EPS Growth: 74.27%
• Country: US
• Employees: 15
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Reinsurance
• EPS (TTM): N/A
• Shares Outstanding: 46,979
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ―

American Overseas Group's overall score reflects its strong financial performance and attractive valuation, counterbalanced by bearish technical indicators. The company's significant revenue growth and improved profitability are key strengths. However, its stock is experiencing downward momentum, which poses a risk to potential investors despite the low P/E ratio suggesting undervaluation.

American Overseas Group Business Overview & Revenue Model

Company Description

American Overseas Group Limited, through its subsidiaries, provides property/casualty insurance and reinsurance products and services in Bermuda, Barbados, and the United States. It offers non-standard auto insurance products through specialty managing general agents and management services. The company was formerly known as RAM Holdings Ltd. and changed its name to American Overseas Group Limited in December 2011. American Overseas Group Limited was incorporated in 1998 and is based in Hamilton, Bermuda.

How the Company Makes Money

American Overseas Group generates revenue primarily through the underwriting activities of its reinsurance operations. The company earns money by collecting premiums from insurance companies in exchange for providing reinsurance coverage. These premiums constitute the main revenue stream for AOREF. Additionally, AOREF invests a portion of these premiums in various financial assets to generate investment income, which further contributes to its earnings. The company's profitability is influenced by its ability to accurately assess risks, set appropriate premium rates, and effectively manage its investment portfolio. Strategic partnerships with other insurance entities and a strong reputation in the reinsurance market also play a significant role in AOREF's revenue generation.

American Overseas Group Financial Statement Overview

Summary

American Overseas Group has shown significant improvement in financial performance, with strong revenue and profit growth. The balance sheet reflects moderate leverage, providing financial stability, albeit with potential risk due to low equity ratio. Cash flow generation is robust, supporting operational needs. Overall, the company is on a positive trajectory but should monitor liabilities to maintain financial health.

Income Statement

The company has shown strong revenue growth with a Revenue Growth Rate of 49.20% in the latest year. The Gross Profit Margin is consistently high at 100%, indicating effective cost management. The Net Profit Margin has improved to 10.75% from a negative position, signaling a turnaround in profitability. However, the negative EBITDA indicates potential challenges in operational cash flow generation.

Balance Sheet

The Debt-to-Equity Ratio is 0.57, showing a moderate level of leverage, which suggests the company has a balanced approach to using debt. The Return on Equity is 14.70%, reflecting strong returns for shareholders. However, the Equity Ratio is relatively low at 3.68%, indicating a high reliance on liabilities to finance assets, which could pose risks if liabilities increase.

Cash Flow

Operating Cash Flow to Net Income Ratio is robust at 7.16, indicating efficient cash flow generation from operations. The Free Cash Flow has significantly improved, and the Free Cash Flow to Net Income Ratio is favorable at 7.16. The company demonstrates strong cash flow management, although previous years showed volatility.

Breakdown	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	49.62M	33.26M	32.71M	24.56M	10.82M
Gross Profit	49.62M	33.26M	32.71M	24.56M	10.82M
EBITDA	-2.24M	867.22K	0.00	-835.70K	0.00
Net Income	5.33M	-948.87K	-4.92M	-5.01M	-3.12M
Balance Sheet
Total Assets	985.22M	531.22M	495.21M	415.14M	498.10M
Cash, Cash Equivalents and Short-Term Investments	56.85M	32.21M	31.91M	24.25M	22.60M
Total Debt	20.77M	19.62M	16.52M	16.52M	23.81M
Total Liabilities	948.62M	495.59M	452.14M	365.75M	444.58M
Stockholders Equity	36.30M	30.18M	37.02M	43.33M	47.47M
Cash Flow
Free Cash Flow	38.21M	3.31M	16.78M	-54.05M	-20.89M
Operating Cash Flow	38.21M	3.31M	16.78M	-54.05M	-20.89M
Investing Cash Flow	-14.19M	-4.04M	-4.65M	56.06M	13.37M
Financing Cash Flow	-2.38M	562.80K	-585.25K	-10.37M	-585.25K

American Overseas Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 902.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AOREF, the sentiment is Positive. The current price of 902 is below the 20-day moving average (MA) of 936.60, above the 50-day MA of 840.07, and above the 200-day MA of 525.31, indicating a bullish trend. The MACD of 21.35 indicates Positive momentum. The RSI at 72.56 is Negative, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AOREF.

American Overseas Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
AOREF	67 Neutral	$42.38M	3.80	24.87%	―	38.44%	74.27%
GLRE	61 Neutral	$448.68M	11.98	5.82%	―	2.18%	-41.11%
KG	53 Neutral	$213.21M	―	-67.34%	―	-72.34%	-289.97%
OXBR	48 Neutral	$14.70M	―	-58.30%	―	―	78.09%