American Overseas Group (AOREF) AI Stock Analysis

• Market Cap: $59.90M
• Dividend Yield: N/A
• Average Volume (3M): 1.00
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.03
• Revenue Growth: 23.10%
• EPS Growth: 44.90%
• Country: US
• Employees: 15
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): N/A
• Shares Outstanding: 46,979
• 10 Day Avg. Volume: 3
• 30 Day Avg. Volume: 1
• PEG Ratio: 0.02
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 2.69
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 0.39
• Enterprise Value/Ebitda: 1.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $1,658.00 ▲(27.54% Upside)
• Action: Reiterated Date: 01/14/26
• Date: Action: Reiterated 01/14/26

The score is driven mainly by solid financial performance (improved profitability, strong ROE, and moderate leverage), supported by a low P/E valuation. Technicals are positive but tempered by overbought signals (RSI ~75 and Stochastic 100), and recent revenue/cash-flow volatility remains a key risk.

Positive Factors

Profitability & ROE

Sustained high margins and double-digit ROE indicate efficient underwriting and capital deployment, supporting internal capital generation and reserve building. Over a 2–6 month horizon this underpins resilience to underwriting cycle swings and funds strategic reinvestment.

Improving Leverage

A moderate, falling debt-to-equity ratio and rising equity signal improving capitalization. For a reinsurer, this strengthens claims-paying ability, reduces refinancing risk, and provides flexibility to deploy capital for growth or absorb catastrophe losses over the medium term.

Recent Cash Generation

Current period FCF roughly matching net income shows ability to convert earnings into cash, supporting operations, reserve funding and potential shareholder returns. This cash conversion ability enhances financial flexibility across business cycles.

Negative Factors

Revenue Downturn

A material TTM revenue decline after prior growth signals weakening premium scale or reduced market share. For reinsurance, lower top-line momentum can constrain spread economies and pricing leverage, reducing long-term growth visibility and strategic optionality.

Cash Flow Volatility

Large swings in operating cash flow across years increase uncertainty in liquidity planning and capital allocation. Persistent volatility can force defensive actions (asset sales, capital raises) and complicate reserve management, raising execution risk over months.

Earnings Quality & Consistency

Irregular earnings and a past negative EBITDA year indicate reliance on non‑recurring items or volatile investment/claims patterns. This reduces predictability of underwriting profitability and complicates forecasting, affecting strategic planning and risk assessment.

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

AOREF generates revenue primarily through the underwriting of insurance and reinsurance policies, collecting premiums from clients in exchange for coverage against specified risks. The company also earns income from investment activities, as premiums collected are invested in various financial instruments until claims are made. Key revenue streams include marine and aviation insurance policies, which often involve higher premiums due to the specialized nature of the risks involved. Additionally, partnerships with brokers and agents enhance AOREF's market reach and contribute to its earnings by facilitating access to a wider client base. Factors such as effective risk management, claims control, and strategic investment of reserves play a significant role in optimizing the company's profitability.

American Overseas Group Financial Statement Overview

Summary

Recent profitability is solid with positive net income and strong margins (TTM net margin ~13.8%, EBIT margin ~20.9%) plus strong ROE (~20%+). Balance-sheet leverage appears moderate and improving (debt-to-equity ~0.34). Offsetting this, revenue declined materially in TTM and both earnings and cash flows have shown meaningful volatility across years.

Income Statement

Profitability has improved meaningfully versus earlier years: net income is positive in recent periods, with TTM (Trailing-Twelve-Months) net margin around 13.8% and EBIT margin around 20.9%. Revenue scaled up strongly from 2020–2024, but momentum softened in TTM (Trailing-Twelve-Months) with revenue down materially versus the prior period. A key watch item is earnings quality/consistency given unusual volatility across years (including prior losses and a negative EBITDA year in 2023 despite positive EBIT).

Balance Sheet

Leverage looks manageable and improving: debt-to-equity declined from higher levels in 2022–2023 to ~0.34 in TTM (Trailing-Twelve-Months), alongside rising equity. Returns on equity are strong and steady in the last two periods (about 20%+), signaling solid profitability on the capital base. The main caution is the large asset base typical of reinsurance, where headline leverage ratios may not fully capture risk; however, based on provided data, capitalization trends appear supportive.

Cash Flow

Cash generation is positive in the most recent period, with TTM (Trailing-Twelve-Months) operating cash flow and free cash flow both around $18.7M, roughly in line with net income (free cash flow to net income ~1.0). That said, free cash flow declined sharply in TTM (Trailing-Twelve-Months) versus the prior period, and cash flow has been volatile historically (including a very large negative operating cash flow in 2020 and a very large positive in 2023). This variability increases execution and liquidity-risk sensitivity despite current-year strength.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	77.81M	75.22M	49.62M	33.26M	32.71M	24.56M
Gross Profit	70.92M	75.22M	49.62M	33.26M	32.71M	24.56M
EBITDA	16.24M	14.47M	-2.24M	867.22K	0.00	-3.53M
Net Income	10.72M	9.40M	5.33M	-948.87K	-4.92M	-5.01M
Balance Sheet
Total Assets	936.58M	873.47M	985.22M	531.22M	495.21M	415.14M
Cash, Cash Equivalents and Short-Term Investments	51.27M	51.46M	56.85M	32.21M	31.91M	24.25M
Total Debt	19.04M	20.77M	20.77M	19.62M	16.52M	16.52M
Total Liabilities	879.76M	827.59M	948.62M	495.59M	452.14M	365.75M
Stockholders Equity	56.82M	45.88M	36.30M	30.18M	37.02M	43.33M
Cash Flow
Free Cash Flow	18.71M	6.12M	38.21M	3.31M	16.78M	-54.05M
Operating Cash Flow	18.71M	6.12M	36.09M	3.31M	16.78M	-54.05M
Investing Cash Flow	-8.03M	-10.17M	-14.19M	-4.04M	-4.65M	56.06M
Financing Cash Flow	-5.42M	-2.31M	-255.02K	562.80K	-585.25K	-10.37M

American Overseas Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1300.00
• 50DMA: Negative
• 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 AOREF, the sentiment is Negative. The current price of 1300 is below the 20-day moving average (MA) of 1342.39, below the 50-day MA of 1336.61, and above the 200-day MA of 1038.34, indicating a neutral trend. The MACD of -16.90 indicates Positive momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 22.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AOREF.

American Overseas Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HG	82 Outperform	$3.00B	6.68	22.39%	―	22.79%	-5.17%
RNR	80 Outperform	$13.22B	5.42	23.79%	0.57%	-3.96%	-48.08%
AOREF	71 Outperform	$59.90M	5.64	23.95%	―	23.10%	44.90%
SPNT	71 Outperform	$2.40B	5.98	20.86%	―	7.87%	-4.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GLRE	63 Neutral	$478.41M	-295.35	-0.28%	―	5.83%	-101.38%
OXBR	44 Neutral	$8.67M	-3.02	-50.32%	―	―	55.30%