First Acceptance AI Stock Analysis
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First Acceptance (FACO) AI Stock Analysis
First Acceptance
(Other OTC:FACO)
FACO scores above average, driven primarily by a markedly de-risked balance sheet — equity more than tripled since 2022, leverage down to 0.21 debt-to-equity, and ROE near 19% — combined with a restored and improving profit profile. An attractive 6.5x P/E adds valuation support. These strengths are tempered by two clear risks: revenue has declined for two consecutive periods, so earnings growth is coming from pricing and underwriting discipline rather than expansion, and operating cash flow has fallen sharply to $19.5M TTM, weakening cash conversion relative to reported profits. Technicals are mixed — the longer-term uptrend above the 100- and 200-day averages remains intact, but the stock has slipped below its short-term averages with a deeply oversold stochastic reading. No dividend and no earnings call or corporate event data limit additional support for the score.
First Acceptance (FACO) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $215.13M
- Dividend Yield
- ―
- Average Volume (3M)
- 12.89K
- Price to Earnings (P/E)
- 6.5
- Beta (1Y)
- 0.38
- Revenue Growth
- -13.94%
- EPS Growth
- 15.38%
- Country
- US
- Employees
- 629
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Insurance - Property & Casualty
First Acceptance Business Overview & Revenue Model
Company Description
First Acceptance Corporation, together with its subsidiaries, operates as a retailer, servicer, and underwriter of non-standard personal automobile insurance and related products in the United States. It issues non-standard automobile insurance polic...
How the Company Makes Money
FACO generated revenue primarily by selling and servicing personal auto insurance policies. Its core revenue stream was net earned premiums: premiums collected from policyholders over the coverage period, adjusted for reinsurance and cancellations. P...
First Acceptance Financial Statement Overview
Summary
A genuine turnaround story: the company swung from losses in 2021–2022 to $33.4M of TTM net income on $459.3M of revenue, with net margin improving to 7.3% and operating margin to 9.8%. The balance sheet is the standout strength — equity has more than tripled to $210.9M, debt-to-equity has fallen to a conservative 0.21, and return on equity is near 19%. Offsetting this are two consecutive periods of revenue decline from the 2024 peak and a sharp slide in operating cash flow to just $19.5M TTM, well below prior years and now trailing reported earnings. Inconsistent gross margin reporting adds noise to earnings quality.
Income Statement
65PositiveBalance Sheet
76PositiveCash Flow
55Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 459.33M | 506.34M | 559.43M | 487.54M | 302.30M | 285.25M |
| Gross Profit | 180.64M | 200.89M | 40.53M | 33.48M | -15.11M | 2.05M |
| EBITDA | 46.13M | 43.11M | 38.61M | 105.40M | -16.32M | 999.00K |
| Net Income | 33.36M | 30.23M | 26.29M | 73.91M | -17.49M | -1.23M |
Balance Sheet | ||||||
| Total Assets | 740.54M | 725.62M | 680.39M | 570.37M | 355.94M | 322.65M |
| Cash, Cash Equivalents and Short-Term Investments | 46.44M | 181.07M | 173.08M | 302.67M | 162.40M | 180.49M |
| Total Debt | 45.08M | 45.53M | 45.40M | 46.02M | 55.30M | 51.97M |
| Total Liabilities | 529.60M | 525.74M | 510.83M | 428.52M | 55.30M | 51.97M |
| Stockholders Equity | 210.94M | 199.88M | 169.56M | 141.85M | 65.52M | 92.90M |
Cash Flow | ||||||
| Free Cash Flow | 18.58M | 46.57M | 51.79M | 83.82M | -8.10M | -10.46M |
| Operating Cash Flow | 19.46M | 47.14M | 52.12M | 85.16M | -3.89M | -6.60M |
| Investing Cash Flow | -24.61M | -48.48M | -75.53M | -24.53M | -7.22M | 34.48M |
| Financing Cash Flow | -1.44M | -6.28M | -446.00K | 83.00K | -642.00K | -15.30M |
First Acceptance Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FACO, the sentiment is Negative. The current price of 5.83 is below the 20-day moving average (MA) of 5.99, below the 50-day MA of 6.04, and above the 200-day MA of 5.31, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 53.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FACO.
First Acceptance Risk Analysis
First Acceptance disclosed 20 risk factors in its most recent earnings report. First Acceptance reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksFirst Acceptance Peers Comparison
Overall Rating
KINS89Outperform
DGICA77Outperform
SAFT75.85Outperform
ROOT73Outperform
MCY66Neutral- FACO65Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| KINS | 89Outperform | $326.42M | 7.95 | 51.37% | 0.95% | 31.48% | 27.09% |
| DGICA | 77Outperform | $761.19M | 9.92 | 10.57% | 4.01% | -3.37% | -22.70% |
| SAFT | 76Outperform | $1.53B | 21.63 | 8.08% | 3.53% | 4.62% | -18.49% |
| ROOT | 73Outperform | $668.00M | 8.84 | 20.24% | ― | 7.89% | 39.83% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| MCY | 66Neutral | $4.78B | 7.48 | 24.15% | 1.47% | 5.42% | 46.21% |
| FACO | 65Neutral | $216.20M | 6.48 | 16.06% | ― | -13.94% | 15.38% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FACO | First Acceptance Corp | 5.83 | 1.83 | 45.75% | |
| DGICA | Donegal | 18.96 | -0.21 | -1.10% | |
| KINS | Kingstone | 23.23 | 9.04 | 63.65% | |
| MCY | Mercury General | 86.41 | -0.51 | -0.58% | |
| SAFT | Safety Insurance | 104.34 | 30.58 | 41.46% | |
| ROOT | Root, Inc. | 43.63 | -38.21 | -46.69% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 05, 2026