AAME  Atlantic American Corporation

Exchange

NASDAQ

Sector

Finance

Industry

Life Insurance

Market Cap.

77.58M

Current Price

$3.80
+0.17 (+4.83%)

Book Price

$3.13
Overvalued by 17.64%
Financial Institution

Company Metrics

  • P/E 77.55
  • P/S 0.45
  • P/B 0.68
  • EPS 0.05
  • Dividend 0.02 / 0.51%
  • Avg. Vol. 4,631.00
  • Shares 20.42M
  • Market Cap. 77.58M

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

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.
Atlantic American Corporation (NASDAQ:AAME) Average Rating At 0
Markets Daily - Feb 18, 2017
Atlantic American Corporation was given a 50 for the session as on 2017-02-18. The mechanism of computationally listing and conveying pinions in news articles, especially to highlight the writer's outlook, whether it is neutral, negative or positive ...
Volatile Mover Inside Radar: Atlantic American Corporation's (AAME) stock ...
WsNews 4investors - Feb 15, 2017
Atlantic American Corporation's (AAME) stock price escalated 6.61% to finalize at $3.95 throughout previous buying and selling session.
Atlantic American Corporation (NASDAQ:AAME) Has An Impact Score Of 50
Markets Daily - Jan 28, 2017
Alpha One provides algorithm based analytics which can help determine stock sentiment based on various online channels that publish content about a given company. They track only the most impactful sources on a daily basis. Atlantic American ...
Average Rating Of Atlantic American Corporation (NASDAQ:AAME) At 0
Markets Daily - Jan 28, 2017
It establishes equity sentiment by revising news printed on web channels on that particular firm. They expect on the impactful content means at consistent intervals.
America's Monopolies Are Holding Back the Economy
The Atlantic - 11 hours ago
The effects of monopoly enrage voters in their day-to-day lives, as they face the sky-high prices set by drug-company cartels and the abuses of cable providers, health insurers, and airlines.
The Christian Retreat From Public Life
The Atlantic - 18 hours ago
Subscribe to The Atlantic's Politics & Policy Daily, a roundup of ideas and events in American politics. Donald Trump was elected president with the help of 81 percent of white evangelical voters.
Is The Benedict Option Good For The Gays? - The American Conservative
Dakota Access Pipeline Protesters Burn Their Camp Ahead of Evacuation
The Atlantic - 9 hours ago
Campers set structures on fire in preparation for the Army Corp's 2 p.m. deadline to leave the Oceti Sakowin protest camp on February 22, 2017 in Cannon Ball, North Dakota.
As Construction Near Standing Rock Restarts, Pipeline Fights Flare Across the US - The Intercept
How Immigrants Have Contributed to American Inventiveness
The Atlantic - Feb 7, 2017
Subscribe to ‚ÄčThe Atlantic Daily‚Äč, our free weekday email newsletter. ... For example, a number of immigrants, including a Canadian, a Belgian and a Russian, worked together at the Radio Corporation of America to create the first electron microscope.
Logistec USA forms joint venture with GCBE
American Shipper (subscription) - Feb 21, 2017
The joint venture will consolidate and expand bulk cargo handling services of both companies in the U.S. Southeast and Gulf region.
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
20112012201320142015
Free Cash Flow - - - - -
divided by
Invested Capital 302.13M 320.18M 319.38M 317.01M 314.60M
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 $5.41 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 3.29M 4.44M 11.02M 4.43M 4.39M
divided by
Stockholders' Equity 96.28M 105.74M 100.93M 104.20M 102.49M
Return on Equity 3.42% 4.20% 10.92% 4.25% 4.28%

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
2006200720082009201020112012201320142015
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
2006200720082009201020112012201320142015
Retained Earnings 4.97M 10.53M 5.12M 3.40M 5.39M 6.18M 8.62M 18.74M 21.87M 25.44M
Retained Earnings Growth - 111.91% -51.39% -33.50% 58.31% 14.66% 39.52% 117.35% 16.69% 16.36%

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
2006200720082009201020112012201320142015
Net Income 8.94M 7.25M -3.88M -1.21M 2.49M 3.29M 4.44M 11.02M 4.43M 4.39M
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
2006200720082009201020112012201320142015
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
2006200720082009201020112012201320142015
Capital Expenditure - - - - - - - - - -
divided by
Net Income 8.94M 7.25M -3.88M -1.21M 2.49M 3.29M 4.44M 11.02M 4.43M 4.39M
Capital Expenditure Ratio - - - - - - - - - -

Strong Dividend History over the past 10 years

AAME has consistently distributed a dividend for the past 8 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
2006200720082009201020112012201320142015
Dividend Paid - - 1.68M 508,000.00 508,000.00 445,000.00 2.50M 906,000.00 1.31M 811,000.00
divided by
Shares Outstanding 23.04M 22.24M 21.87M 22.31M 22.35M 22.27M 21.29M 22.88M 20.82M 20.57M
Dividend Paid Per Share - - 0.08 0.02 0.02 0.02 0.12 0.04 0.06 0.04
Price at Year End 2.96 1.44 0.87 1.25 2.05 1.97 2.95 3.90 3.83 4.87
Dividend Yield - - 8.80% 1.82% 1.11% 1.01% 3.98% 1.02% 1.64% 0.81%

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
2006200720082009201020112012201320142015
Shares Outstanding 23.04M 22.24M 21.87M 22.31M 22.35M 22.27M 21.29M 22.88M 20.82M 20.57M
Stock Bought Back - 3.58% 1.69% -1.94% -0.17% 0.33% 4.62% -6.93% 9.88% 1.23%
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