American Overseas Group (AOREF) AI Stock Analysis

• Market Cap: $61.07M
• Dividend Yield: N/A
• Average Volume (3M): 1.00
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.10
• 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: 0.24
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.25
• Enterprise Value/Ebitda: 0.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $1,519.00 ▲(16.85% Upside)

The overall stock score reflects strong technical momentum and attractive valuation, which are the most significant factors. Financial performance is solid but tempered by cash flow concerns and historical volatility. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates positive market demand and effective business strategies, supporting long-term expansion potential.

Profitability Improvements

Improved profitability margins suggest efficient cost management and pricing strategies, contributing to sustained financial health.

Leverage Management

Effective leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth can limit the company's ability to reinvest in its business and meet financial obligations, posing long-term risks.

Historical Margin Volatility

Volatile margins can lead to unpredictable earnings, affecting investor confidence and the company's ability to plan for the future.

Equity Ratio Concerns

A low equity ratio may indicate vulnerability to asset value changes, impacting financial stability and increasing reliance on debt.

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

American Overseas Group shows strong revenue growth and profitability improvements, with effective leverage management. However, cash flow challenges and historical volatility in margins and equity ratios suggest areas for caution. Continued focus on cash flow stability and asset management will be crucial for sustained financial health.

Income Statement

The company has shown a strong revenue growth rate of 9.71% in the latest year, indicating positive momentum. Gross profit margin is stable, and net profit margin improved to 12.50%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 19.23%, showcasing operational efficiency. However, historical volatility in margins suggests potential risks.

Balance Sheet

The debt-to-equity ratio has improved to 0.45, indicating better leverage management. Return on equity is strong at 20.49%, reflecting effective use of equity to generate profits. However, the equity ratio is relatively low, which could pose risks if asset values fluctuate.

Cash Flow

The company experienced a significant decline in free cash flow growth by 70.39%, which is concerning. The operating cash flow to net income ratio is positive, indicating that earnings are supported by cash flows. However, the free cash flow to net income ratio is zero, highlighting potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.81M	75.22M	49.62M	33.26M	32.71M	24.56M
Gross Profit	59.79M	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	0.00	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: Positive
• Last Price: 1300.00
• 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 AOREF, the sentiment is Positive. The current price of 1300 is below the 20-day moving average (MA) of 1300.63, above the 50-day MA of 1291.18, and above the 200-day MA of 901.74, indicating a neutral trend. The MACD of 2.73 indicates Positive momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 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
HG	82 Outperform	$2.65B	6.14	17.62%	―	22.79%	-5.17%
RNR	77 Outperform	$12.89B	7.59	14.98%	0.57%	-3.96%	-48.08%
SPNT	76 Outperform	$2.37B	12.86	8.09%	―	7.87%	-4.68%
AOREF	75 Outperform	$61.07M	5.70	23.95%	―	23.10%	44.90%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GLRE	63 Neutral	$473.30M	-301.69	-0.28%	―	5.83%	-101.38%
OXBR	45 Neutral	$10.21M	-3.58	-50.32%	―	―	55.30%