Atlantic American (AAME) AI Stock Analysis

• Market Cap: $33.25M
• Dividend Yield: 1.23%
• Average Volume (3M): 16.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 0.77%
• EPS Growth: -720.07%
• Country: US
• Employees: 153
• Sector: Financial
• Sector Strength: 83
• Industry: Insurance - Life
• EPS (TTM): -0.23
• Shares Outstanding: 20,399,757
• 10 Day Avg. Volume: 8,193
• 30 Day Avg. Volume: 16,804
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.24
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.40
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Atlantic American's stock score is weighed down by financial performance challenges, notably in profitability, as seen in declining net income and absent EBIT/EBITDA. The balance sheet shows some strength, but declining equity is concerning. Technical analysis indicates a neutral outlook with no clear bullish or bearish signals. Valuation metrics, particularly the negative P/E ratio, further highlight risks associated with unprofitability, although the dividend yield provides some offset.

Atlantic American Business Overview & Revenue Model

Company Description

Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. The company operates through American Southern and Bankers Fidelity segments. It offers property and casualty insurance products, including business automobile insurance coverage for state governments, local municipalities, and other motor pools and fleets; and inland marine and general liability insurance products. The company also provides surety bond coverage for subdivision construction, school bus contracts, as well as performance and payment bonds. In addition, the company provides individual and group whole life insurance, as well as medicare supplement insurance products; and other accident and health insurance coverages, include various individual and group policies for the payment of standard benefits for the treatment of diagnosed cancer and other critical illnesses, as well as various other policies, such as short-term nursing facility care, accident expense, hospital indemnity, and disability coverages. It markets its products through independent agents and brokers. The company was founded in 1937 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Atlantic American Corporation generates revenue primarily through the underwriting and sale of insurance policies. The company makes money by collecting premiums from policyholders in exchange for providing insurance coverage. Its key revenue streams include income from life insurance policies, supplemental health insurance products, and property and casualty insurance offerings. The company may also earn investment income from the management of its insurance reserves. Significant factors contributing to its earnings include effective risk management, strategic pricing of insurance products, and maintaining a balance between premium income and claims payouts. The company's financial performance is bolstered by its ability to accurately assess risk, control underwriting expenses, and optimize its investment portfolio.

Atlantic American Financial Statement Overview

Summary

Atlantic American displays mixed financial health with challenges in profitability as seen in declining net income and absent EBIT/EBITDA in recent periods. The company's balance sheet shows strength with low leverage and a solid equity base, yet declining equity raises concerns. Cash flow management appears robust despite inconsistencies, indicating potential resilience in liquidity management.

Income Statement

The income statement shows fluctuating revenue with a slight increase in 2024 compared to 2023. However, the company has experienced negative net income in recent years, indicating challenges in maintaining profitability. The absence of EBIT and EBITDA in 2024 suggests operational challenges, impacting margins negatively.

Balance Sheet

The balance sheet is characterized by a healthy equity ratio, with stockholders' equity representing a significant portion of total assets. The debt-to-equity ratio improved in 2024 due to reduced total debt. However, the declining trend in stockholders' equity over the years raises concerns about long-term financial stability.

Cash Flow

Cash flow statements indicate positive free cash flow growth from 2023 to 2024, with operating cash flow exceeding net income, suggesting efficient cash flow management. However, the fluctuating nature of operating cash flow and inconsistent free cash flow over the years highlight potential liquidity risks.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
188.23M	186.79M	187.85M	199.55M	195.35M
	Gross Profit
188.23M	186.79M	187.85M	199.55M	195.35M
	EBIT
0.00	186.79M	3.16M	5.29M	15.43M
	EBITDA
-1.48M	3.36M	4.94M	401.51M	18.09M
	Net Income Common Stockholders
-4.27M	-171.00K	1.52M	4.28M	12.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.57M	28.30M	237.59M	285.74M	273.43M
	Total Assets
393.43M	381.26M	367.06M	402.29M	405.19M
	Total Debt
37.76M	36.76M	35.75M	33.74M	33.74M
	Net Debt
2.19M	8.46M	6.88M	8.98M	14.42M
	Total Liabilities
293.81M	273.99M	264.87M	33.74M	35.04M
	Stockholders Equity
99.61M	107.28M	102.19M	141.29M	145.06M
Cash Flow		Free Cash Flow
4.58M	2.54M	6.33M	981.00K	8.74M
	Operating Cash Flow
4.80M	2.62M	6.45M	1.09M	8.97M
	Investing Cash Flow
2.28M	-3.37M	-3.43M	5.30M	-2.06M
	Financing Cash Flow
186.00K	181.00K	1.08M	-954.00K	-481.00K

Atlantic American Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAME, the sentiment is Positive. The current price of 1.63 is above the 20-day moving average (MA) of 1.46, above the 50-day MA of 1.49, and above the 200-day MA of 1.55, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 60.28 is Neutral, neither overbought nor oversold. The STOCH value of 83.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAME.

Atlantic American Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNW	66 Neutral	$2.85B	13.94	2.73%	―	0.98%	156.14%
Sector *	64 Neutral	$12.51B	9.81	7.92%	16985.69%	12.67%	-5.98%
CIA	59 Neutral	$203.62M	12.90	7.80%	―	1.80%	-39.04%
CNO	59 Neutral	$3.83B	13.35	12.47%	1.71%	-0.43%	-16.22%
BHF	49 Neutral	$3.31B	11.10	7.84%	―	14.74%	―
AAME	48 Neutral	$33.25M	―	-4.13%	1.23%	0.77%	-720.07%
ABL	48 Neutral	$784.05M	―	-8.15%	―	103.34%	-866.41%