AMERISAFE, Inc.
AMERISAFE, Inc. Fundamental Analysis
AMERISAFE, Inc. (AMSF) shows moderate financial fundamentals with a PE ratio of 13.67, profit margin of 14.86%, and ROE of 9.76%. The company generates $0.3B in annual revenue with weak year-over-year growth of 2.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AMSF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAMSF demonstrates superior asset utilization.
Valuation Score
ExcellentAMSF trades at attractive valuation levels.
Growth Score
WeakAMSF faces weak or negative growth trends.
Financial Health Score
ModerateAMSF shows balanced financial health with some risks.
Profitability Score
WeakAMSF struggles to sustain strong margins.
Key Financial Metrics
Is AMSF Expensive or Cheap?
P/E Ratio
AMSF trades at 13.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AMSF's PEG of -2.56 indicates potential undervaluation.
Price to Book
The market values AMERISAFE, Inc. at 0.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.95 times EBITDA. This signals the market has high growth expectations.
How Well Does AMSF Make Money?
Net Profit Margin
For every $100 in sales, AMERISAFE, Inc. keeps $14.86 as profit after all expenses.
Operating Margin
Core operations generate 18.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.76 in profit for every $100 of shareholder equity.
ROA
AMERISAFE, Inc. generates $21.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AMERISAFE, Inc. generates limited operating cash flow of $11.14M, signaling weaker underlying cash strength.
Free Cash Flow
AMERISAFE, Inc. generates weak or negative free cash flow of $8.98M, restricting financial flexibility.
FCF Per Share
Each share generates $0.47 in free cash annually.
FCF Yield
AMSF converts 1.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How AMSF Stacks Against Its Sector Peers
| Metric | AMSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.67 | 18.91 | Better (Cheaper) |
| ROE | 17.91% | 788.00% | Weak |
| Net Margin | 14.86% | 2164.00% | Weak |
| Debt/Equity | 0.00 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 616.06 | Weak Liquidity |
| ROA | 21.15% | -23806.00% (disorted) | Strong |
AMSF 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 AMERISAFE, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-5.03%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-44.67%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
Declining