AMERISAFE, Inc. (AMSF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mercury General Corp.

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The Hanover Insurance Group, Inc.

Palomar Holdings, Inc.

NMI Holdings, Inc.

ProAssurance Corp.

Horace Mann Educators Corp.

AMERISAFE, Inc.

Kemper Corp.

Employers Holdings, Inc.

Safety Insurance Group, Inc.

Why is AMERISAFE, Inc. ?

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at USD 10.16 MM
OPERATING PROFIT(Q) Lowest at USD 10.15 MM
OPERATING PROFIT MARGIN(Q) Lowest at 12.68 %

With ROE of 18.72%, it has a very expensive valuation with a 2.61 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.82%, its profits have fallen by -14.9%
At the current price, the company has a high dividend yield of 753.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.82% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is AMERISAFE, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

AMERISAFE, Inc.

-26.87%

-1.01

26.88%

S&P 500

22.24%

1.91

13.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.35%

EBIT Growth (5y)

0.59%

EBIT to Interest (avg)

-0.01

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

20.28%

Dividend Payout Ratio

63.14%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

18.55%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.61

EV to EBIT

EV to EBITDA

510.62

EV to Capital Employed

4.82

EV to Sales

1.61

PEG Ratio

Dividend Yield

753.95%

ROCE (Latest)

ROE (Latest)

18.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 94.95%

DIVIDEND PER SHARE(HY)

Highest at USD 0

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 10.16 MM

OPERATING PROFIT(Q)

Lowest at USD 10.15 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.68 %

PRE-TAX PROFIT(Q)

Lowest at USD 10.15 MM

NET PROFIT(Q)

Lowest at USD 8.14 MM

EPS(Q)

Lowest at USD 0.43

Here's what is working for AMERISAFE, Inc.

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 94.95% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for AMERISAFE, Inc.

Operating Cash Flow

Lowest at USD 10.16 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 10.15 MM has Fallen at -30.95%

over average net sales of the previous four periods of USD 14.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 8.14 MM has Fallen at -30.9%

over average net sales of the previous four periods of USD 11.78 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 10.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 12.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 10.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 8.14 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.43

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)