AMERISAFE Inc (AMSF) stock analysis

P/E below its 5-year median

Amerisafe's P/E of 9.0 is below its own 5-year median of 15.5.

P/E below the industry

Amerisafe's P/E of 9.0 is below the Fire, Marine, and Casualty Insurance median of 10.4.

P/S below the industry

Amerisafe's price-to-sales of 1.07 is below the Fire, Marine, and Casualty Insurance median of 1.28.

P/B below the industry

Amerisafe's price-to-book of 1.51 is below the Fire, Marine, and Casualty Insurance median of 1.62.

Trading below fair value

The share price of $19.31 is below our fair value estimate of $28.19.

Margin of safety over 20%

The price is 31.5% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -5.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -19.1% over the last twelve months, against a 5-year average of -11.5% a year.

Growing faster than the industry

Revenue grew 7.7% 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 over 15%

Return on equity was 15.8% over the last twelve months and averaged 18.1% over five years.

Return on assets over 1%

Return on assets was 3.5%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Amerisafe's return on equity of 15.8% is below the Fire, Marine, and Casualty Insurance median of 15.9%.

Earnings shrank over 5 years

Net income shrank 11.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 12.1% over the last twelve months, against a 5-year average of 18.5%.

Net margin above the industry

Amerisafe's net margin of 12.1% is above the Fire, Marine, and Casualty Insurance median of 12.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

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

Amerisafe paid dividends worth 13.6% of the share price over the last twelve months.

Yield above Treasuries

The 13.6% 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; Amerisafe yields 13.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Not covered by earnings

Dividends take 157% of net income, leaving little room.

Not covered by free cash flow

Dividends take 514% of free cash flow.