AMERISAFE INC (AMSF) Stock Fundamental Analysis
NASDAQ:AMSF - Nasdaq - US03071H1005 - Common Stock - Currency: USD
Overall AMSF gets a fundamental rating of 4 out of 10. We evaluated AMSF against 144 industry peers in the Insurance industry. AMSF has only an average score on both its financial health and profitability. AMSF does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
AMSF had positive earnings in the past year.
AMSF had a positive operating cash flow in the past year.
Each year in the past 5 years AMSF has been profitable.
Each year in the past 5 years AMSF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AMSF (4.90%) is better than 78.87% of its industry peers.
With an excellent Return On Equity value of 19.54%, AMSF belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
AMSF's Return On Invested Capital of 4.20% is fine compared to the rest of the industry. AMSF outperforms 75.35% of its industry peers.
AMSF had an Average Return On Invested Capital over the past 3 years of 4.73%. This is in line with the industry average of 4.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 19.54% | ||
| ROIC | 4.2% |
ROA(3y)4.71%
ROA(5y)5.24%
ROE(3y)18.41%
ROE(5y)19.3%
ROIC(3y)4.73%
ROIC(5y)5.25%
1.3 Margins
Looking at the Profit Margin, with a value of 20.37%, AMSF belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
In the last couple of years the Profit Margin of AMSF has remained more or less at the same level.
Looking at the Operating Margin, with a value of 20.74%, AMSF belongs to the top of the industry, outperforming 80.99% of the companies in the same industry.
AMSF's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.74% | ||
| PM (TTM) | 20.37% | ||
| GM | N/A |
OM growth 3Y-6.65%
OM growth 5Y1.45%
PM growth 3Y-7.68%
PM growth 5Y1.41%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AMSF is destroying value.
The number of shares outstanding for AMSF has been reduced compared to 1 year ago.
The number of shares outstanding for AMSF has been reduced compared to 5 years ago.
Compared to 1 year ago, AMSF has a worse debt to assets ratio.
2.2 Solvency
AMSF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.46
WACC9.06%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AMSF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.95%.
AMSF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.49% yearly.
The Revenue has decreased by -1.31% in the past year.
AMSF shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.15% yearly.
EPS 1Y (TTM)-13.95%
EPS 3Y-11.93%
EPS 5Y-5.49%
EPS Q2Q%-4.92%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y-3.04%
Revenue growth 5Y-4.15%
Sales Q2Q%8.34%
3.2 Future
AMSF is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.00% yearly.
The Revenue is expected to grow by 2.08% on average over the next years.
EPS Next Y-12.84%
EPS Next 2Y-9.99%
EPS Next 3Y-9%
EPS Next 5YN/A
Revenue Next Year3.48%
Revenue Next 2Y2.17%
Revenue Next 3Y2.08%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.10, which indicates a rather expensive current valuation of AMSF.
AMSF's Price/Earnings ratio is a bit more expensive when compared to the industry. AMSF is more expensive than 65.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, AMSF is valued a bit cheaper.
The Price/Forward Earnings ratio is 20.98, which indicates a rather expensive current valuation of AMSF.
Based on the Price/Forward Earnings ratio, AMSF is valued a bit more expensive than the industry average as 69.72% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.70. AMSF is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 20.98 |
4.2 Price Multiples
AMSF's Enterprise Value to EBITDA is on the same level as the industry average.
AMSF's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AMSF is more expensive than 73.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.37 | ||
| EV/EBITDA | 13.8 |
4.3 Compensation for Growth
AMSF has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as AMSF's earnings are expected to decrease with -9.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.99%
EPS Next 3Y-9%
5. Dividend
5.1 Amount
AMSF has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.17, AMSF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, AMSF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
The dividend of AMSF has a limited annual growth rate of 2.09%.
AMSF has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AMSF pays out 154.46% of its income as dividend. This is not a sustainable payout ratio.
AMSF's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP154.46%
EPS Next 2Y-9.99%
EPS Next 3Y-9%
49.47
+0.05 (+0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.93%
Inst Owner Change-90.84%
Ins Owners1.17%
Ins Owner Change0.44%
Market Cap942.40M
Analysts76
Price Target57.46 (16.15%)
Short Float %1.06%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend4.87
Dividend Growth(5Y)2.09%
DP154.46%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.84%
Min EPS beat(2)-9.06%
Max EPS beat(2)-2.63%
EPS beat(4)1
Avg EPS beat(4)-3.23%
Min EPS beat(4)-9.06%
Max EPS beat(4)2.65%
EPS beat(8)3
Avg EPS beat(8)-0.86%
EPS beat(12)4
Avg EPS beat(12)-7.57%
EPS beat(16)8
Avg EPS beat(16)1.11%
Revenue beat(2)2
Avg Revenue beat(2)1.32%
Min Revenue beat(2)0.2%
Max Revenue beat(2)2.43%
Revenue beat(4)3
Avg Revenue beat(4)1.36%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)4.98%
Revenue beat(8)4
Avg Revenue beat(8)-0.07%
Revenue beat(12)7
Avg Revenue beat(12)0.56%
Revenue beat(16)7
Avg Revenue beat(16)-0.32%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)1.17%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 20.98 | ||
| P/S | 3.13 | ||
| P/FCF | 57.37 | ||
| P/OCF | 54.46 | ||
| P/B | 3 | ||
| P/tB | 3 | ||
| EV/EBITDA | 13.8 |
EPS(TTM)2.59
EY5.24%
EPS(NY)2.36
Fwd EY4.77%
FCF(TTM)0.86
FCFY1.74%
OCF(TTM)0.91
OCFY1.84%
SpS15.83
BVpS16.5
TBVpS16.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 19.54% | ||
| ROCE | 5.16% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.43% | ||
| ROICexgc | 5.12% | ||
| OM | 20.74% | ||
| PM (TTM) | 20.37% | ||
| GM | N/A | ||
| FCFM | 5.45% |
ROA(3y)4.71%
ROA(5y)5.24%
ROE(3y)18.41%
ROE(5y)19.3%
ROIC(3y)4.73%
ROIC(5y)5.25%
ROICexc(3y)4.95%
ROICexc(5y)5.47%
ROICexgc(3y)5.65%
ROICexgc(5y)6.14%
ROCE(3y)5.82%
ROCE(5y)6.46%
ROICexcg growth 3Y-2.53%
ROICexcg growth 5Y2.45%
ROICexc growth 3Y-4.04%
ROICexc growth 5Y1.63%
OM growth 3Y-6.65%
OM growth 5Y1.45%
PM growth 3Y-7.68%
PM growth 5Y1.41%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 75.65% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 27.17% | ||
| Profit Quality | 26.74% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC9.06%
ROIC/WACC0.46
Cap/Depr(3y)110.1%
Cap/Depr(5y)106.28%
Cap/Sales(3y)0.43%
Cap/Sales(5y)0.37%
Profit Quality(3y)49.96%
Profit Quality(5y)61.19%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.95%
EPS 3Y-11.93%
EPS 5Y-5.49%
EPS Q2Q%-4.92%
EPS Next Y-12.84%
EPS Next 2Y-9.99%
EPS Next 3Y-9%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y-3.04%
Revenue growth 5Y-4.15%
Sales Q2Q%8.34%
Revenue Next Year3.48%
Revenue Next 2Y2.17%
Revenue Next 3Y2.08%
Revenue Next 5YN/A
EBIT growth 1Y-19.95%
EBIT growth 3Y-9.49%
EBIT growth 5Y-2.76%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.08%
FCF growth 3Y-22.33%
FCF growth 5Y-21.33%
OCF growth 1Y-61.29%
OCF growth 3Y-22.21%
OCF growth 5Y-21.21%