AAME  Atlantic American Corporation

Exchange

NASDAQ

Sector

Finance

Industry

Life Insurance

Market Cap.

77.57M

Current Price

$3.80
+0.05 (+1.33%)

Book Price

$3.14
Overvalued by 17.31%
Financial Institution

Company Metrics

  • P/E 77.55
  • P/S 0.46
  • P/B 0.72
  • EPS 0.05
  • Dividend 0.02 / 0.53%
  • Avg. Vol. 2,084.00
  • Shares 20.41M
  • Market Cap. 77.57M

Company Description

Atlantic American Corporation, through its subsidiaries, provides life, health, property, and casualty insurance products in the United States. Its property and casualty insurance products include business automobile insurance coverage for state governments, local municipalities, and other large motor pools and fleets, as well as personal property, inland marine, and general liability insurance pr... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

BRIEF-Atlantic American Corporation reports Q4 shr of $0.06
Reuters - Mar 15, 2017
QUITO, April 1 Venezuela's political crisis is looming over Sunday's tight presidential election in Ecuador, where a leftist government aligned with Venezuela's socialist President Nicolas Maduro is hoping to prolong its decade-long rule.
Atlantic American Corporation Reports Fourth Quarter and Year End Results for ...
GlobeNewswire (press release) - Mar 15, 2017
ATLANTA, March 15, 2017 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported its results for the fourth quarter and year ended December 31, 2016.
The 18 Independent Agencies Trump Wants to Eliminate
The Atlantic - Mar 16, 2017
Subscribe to The Atlantic's Politics & Policy Daily, a roundup of ideas and events in American politics. ... The budget is dubbed “A New Foundation for American Greatness,” and Trump's proposed route to making America great again will involve a ...
Atlantic American Announces Appointment of Mark Preisinger to Board of Directors
GlobeNewswire (press release) - Mar 29, 2016
ATLANTA, March 29, 2016 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) announced today that its Board of Directors has appointed Mark Preisinger as a new member of the Board, effective March 30, 2016.
Decision Time: Atlantic American Corporation (NASDAQ:AAME) Stock Technicals ...
CML News - May 7, 2017
Decision Time: Atlantic American Corporation (NASDAQ:AAME) now sits in the perhaps the most difficult technical position -- the stock has no urgency in its direction and that has left it at an inflection point.
Price Alert: Atlantic American Corporation (NASDAQ:AAME) Stock Nears ...
CML News - May 27, 2017
Price Alert: Atlantic American Corporation (NASDAQ:AAME) has now crossed into technical strength -- watch the technical oscillators for momentum gaps.
Why Atlantic American Corporation (AAME) Delivered An Inferior ROE Compared To ...
Simply Wall St - May 11, 2017
Atlantic American Corporation (NASDAQ:AAME), with a ROE of 2.5% over the past twelve months, appeared relatively inefficient compared to the broader industry, which averaged 10.81% ROE.
Atlantic American Corp swings to first-quarter loss on a YOY basis
Myiris.com - May 23, 2017
Atlantic American Corporation (AAME) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.22 million, or $ 0.02 a share in the quarter, against a net profit of $0.90 million, or $0.04 a share in the last year ...
A New Kind of Stock Chart: Atlantic American Corporation (NASDAQ:AAME ...
CML News - Feb 1, 2017
This is a real time view of the critical technical pivot points for Atlantic American Corporation (NASDAQ:AAME) . The technical pivot points we look at all surround the stock price movement from the last 10-trading days through the last year.
Traders Take Note: Atlantic American Corporation (NASDAQ:AAME) Stock Drops ...
CML News - May 18, 2017
Take Note: Atlantic American Corporation (NASDAQ:AAME) has hit some technical weakness in its momentum, and while it has not broken down all the way through support -- watch the key levels that we discuss below and further, watch the stochastics and ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for AAME to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate AAME's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

AAME has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

AAME has only created $- of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow - - - - -
divided by
Invested Capital 320.18M 319.38M 317.01M 314.60M 318.60M
Cash ROIC - - - - -

Poor Return on Equity over the past 5 years

AAME has shown an inability to deliver strong results for shareholders. This could be due to poor management, AAME operating in a highly competitive industry, or having a weak business in general.

AAME has only generated $5.23 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 4.44M 11.02M 4.43M 4.39M 2.64M
divided by
Stockholders' Equity 105.74M 100.93M 104.20M 102.49M 105.51M
Return on Equity 4.20% 10.92% 4.25% 4.28% 2.50%

Poor Business Performance over the past 10 years

AAME's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

AAME has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow - - - - - - - - - -

Consistent Reinvestment of Profits over the past 10 years

AAME has consistently retained profits. This may put AAME in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, AAME can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 10.53M 5.12M 3.40M 5.39M 6.18M 8.62M 18.74M 21.87M 25.44M 27.27M
Retained Earnings Growth - -51.39% -33.50% 58.31% 14.66% 39.52% 117.35% 16.69% 16.36% 7.19%

Highly Competitive Industry over the past 10 years

It's likely that AAME is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely AAME invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 7.25M -3.88M -1.21M 2.49M 3.29M 4.44M 11.02M 4.43M 4.39M 2.64M
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

AAME is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that AAME has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

AAME has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that AAME may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 7.25M -3.88M -1.21M 2.49M 3.29M 4.44M 11.02M 4.43M 4.39M 2.64M
Capital Expenditure Ratio - - - - - - - - - -

Strong Dividend History over the past 10 years

AAME has consistently distributed a dividend for the past 9 years. This suggests AAME is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - 1.68M 508,000.00 508,000.00 445,000.00 2.50M 906,000.00 1.31M 811,000.00 807,000.00
divided by
Shares Outstanding 22.24M 21.87M 22.31M 22.35M 22.27M 21.29M 22.88M 20.82M 20.57M 20.45M
Dividend Paid Per Share - 0.08 0.02 0.02 0.02 0.12 0.04 0.06 0.04 0.04
Price at Year End 1.44 0.87 1.25 2.05 1.97 2.95 3.90 3.83 4.87 4.10
Dividend Yield - 8.80% 1.82% 1.11% 1.01% 3.98% 1.02% 1.64% 0.81% 0.96%

Strong History of Stock Buybacks over the past 10 years

AAME has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 22.24M 21.87M 22.31M 22.35M 22.27M 21.29M 22.88M 20.82M 20.57M 20.45M
Stock Bought Back - 1.69% -1.94% -0.17% 0.33% 4.62% -6.93% 9.88% 1.23% 0.59%
Share your thoughts about AAME

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!