AMERICAN COASTAL INSURANCE Corp (ACIC) stock analysis

P/E below its 5-year median

American Coastal Insurance's P/E of 5.8 is below its own 5-year median of 7.0.

P/E below the industry

American Coastal Insurance's P/E of 5.8 is below the Fire, Marine, and Casualty Insurance median of 10.4.

P/S above the industry

American Coastal Insurance's price-to-sales of 1.59 is above the Fire, Marine, and Casualty Insurance median of 1.28.

P/B below the industry

American Coastal Insurance's price-to-book of 1.39 is below the Fire, Marine, and Casualty Insurance median of 1.62.

Trading below fair value

The share price of $10.18 is below our fair value estimate of $14.09.

Margin of safety over 20%

The price is 27.7% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 14.8% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -5.3% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 5.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 25.5% over the last twelve months and averaged -165% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 7.6%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

American Coastal Insurance's return on equity of 25.5% is above the Fire, Marine, and Casualty Insurance median of 15.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 28.0% over the last twelve months, against a 5-year average of -12.5%.

Net margin above the industry

American Coastal Insurance's net margin of 28.0% is above the Fire, Marine, and Casualty Insurance median of 12.0%.

High debt

Debt is 42.1% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 39.9% five years ago to 42.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 46.5% of total debt.

Interest well covered

Operating income covers interest expense 12.1 times.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

American Coastal Insurance paid dividends worth 7.4% of the share price over the last twelve months.

Yield above Treasuries

The 7.4% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; American Coastal Insurance yields 7.4%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 42.0% of net income.

Covered by free cash flow

Dividends take 53.1% of free cash flow.