Atlantic American Corporation
Atlantic American Corporation Fundamental Analysis
Atlantic American Corporation (AAME) shows weak financial fundamentals with a PE ratio of 11.24, profit margin of 2.45%, and ROE of 4.89%. The company generates $0.2B in annual revenue with weak year-over-year growth of 0.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AAME's fundamental strength across five key dimensions:
Efficiency Score
WeakAAME struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAAME trades at attractive valuation levels.
Growth Score
WeakAAME faces weak or negative growth trends.
Financial Health Score
ModerateAAME shows balanced financial health with some risks.
Profitability Score
WeakAAME struggles to sustain strong margins.
Key Financial Metrics
Is AAME Expensive or Cheap?
P/E Ratio
AAME trades at 11.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AAME's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Atlantic American Corporation at 0.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.35 times EBITDA. This is generally considered low.
How Well Does AAME Make Money?
Net Profit Margin
For every $100 in sales, Atlantic American Corporation keeps $2.45 as profit after all expenses.
Operating Margin
Core operations generate 28.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.89 in profit for every $100 of shareholder equity.
ROA
Atlantic American Corporation generates $1.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Atlantic American Corporation produces operating cash flow of $24.81M, showing steady but balanced cash generation.
Free Cash Flow
Atlantic American Corporation generates strong free cash flow of $24.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.19 in free cash annually.
FCF Yield
AAME converts 42.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How AAME Stacks Against Its Sector Peers
| Metric | AAME Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.24 | 18.73 | Better (Cheaper) |
| ROE | 4.89% | 847.00% | Weak |
| Net Margin | 2.45% | 3919.00% | Weak |
| Debt/Equity | 0.34 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.23 | 674.76 | Weak Liquidity |
| ROA | 1.19% | -21563.00% (disorted) | Weak |
AAME outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Atlantic American Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-5.68%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-998.00%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
363.78%
Industry Style: Value, Dividend, Cyclical
High Growth