American Coastal Insurance Corporation
American Coastal Insurance Corporation Fundamental Analysis
American Coastal Insurance Corporation (ACIC) shows strong financial fundamentals with a PE ratio of 4.88, profit margin of 31.88%, and ROE of 35.67%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 3.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ACIC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentACIC demonstrates superior asset utilization.
Valuation Score
ExcellentACIC trades at attractive valuation levels.
Growth Score
WeakACIC faces weak or negative growth trends.
Financial Health Score
ModerateACIC shows balanced financial health with some risks.
Profitability Score
ExcellentACIC achieves industry-leading margins.
Key Financial Metrics
Is ACIC Expensive or Cheap?
P/E Ratio
ACIC trades at 4.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ACIC's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values American Coastal Insurance Corporation at 1.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.16 times EBITDA. This is generally considered low.
How Well Does ACIC Make Money?
Net Profit Margin
For every $100 in sales, American Coastal Insurance Corporation keeps $31.88 as profit after all expenses.
Operating Margin
Core operations generate 42.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $35.67 in profit for every $100 of shareholder equity.
ROA
American Coastal Insurance Corporation generates $12.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Coastal Insurance Corporation generates strong operating cash flow of $120.63M, reflecting robust business health.
Free Cash Flow
American Coastal Insurance Corporation generates strong free cash flow of $120.52M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.47 in free cash annually.
FCF Yield
ACIC converts 23.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.36
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How ACIC Stacks Against Its Sector Peers
| Metric | ACIC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.88 | 18.73 | Better (Cheaper) |
| ROE | 35.67% | 847.00% | Weak |
| Net Margin | 31.88% | 2562.00% | Weak |
| Debt/Equity | 0.49 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 12.80% | -21692.00% (disorted) | Strong |
ACIC outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Coastal Insurance Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-67.86%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
326.62%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
46.10%
Industry Style: Value, Dividend, Cyclical
High Growth