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AmTrust Financial Services Inc
AFSI : NASDAQ : Financial
$40.63 -0.67 | -1.62%
Today's Range: 40.55 - 41.50
Avg. Daily Volume: 647,100
07/10/14 - 4:00 PM ET

Financial Analysis


AMTRUST FINANCIAL SERVICES's gross profit margin for the first quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

At the same time, stockholders' equity ("net worth") has greatly increased by 34.56% from the same quarter last year.

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Income Statement Q1 FY14 Q1 FY13
Net Sales ($mil)956.78502.81
EBITDA ($mil)138.687.29
EBIT ($mil)124.0178.12
Net Income ($mil)101.7983.88


Balance Sheet Q1 FY14 Q1 FY13
Cash & Equiv. ($mil)887.22670.03
Total Assets ($mil)12214.918030.0
Total Debt ($mil)844.3661.95
Equity ($mil)1580.771174.73


Profitability Q1 FY14 Q1 FY13
Gross Profit Margin14.4917.36
EBITDA Margin14.4817.36
Operating Margin12.9615.54
Sales Turnover0.260.25
Return on Assets2.522.77
Return on Equity19.1518.96
Debt Q1 FY14 Q1 FY13
Current Ratio0.00.0
Debt/Capital0.350.36
Interest Expense11.57.36
Interest Coverage10.7910.61


Share Data Q1 FY14 Q1 FY13
Shares outstanding (mil)75.3374.06
Div / share0.20.13
EPS1.271.08
Book value / share20.9915.86
Institutional Own % n/a n/a
Avg Daily Volume622814.0804827.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 15.81 for the Insurance industry and a discount compared to the S&P 500 average of 19.71. Conducting a second comparison, its price-to-book ratio of 2.02 indicates a discount versus the S&P 500 average of 2.72 and a premium versus the industry average of 1.47. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, AMTRUST FINANCIAL SERVICES seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AFSI 10.96 Peers 15.81   AFSI 2.84 Peers 10.72

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AFSI is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AFSI is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AFSI 8.86 Peers 12.74   AFSI 0.48 Peers 1.85

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AFSI is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AFSI trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AFSI 2.02 Peers 1.47   AFSI 31.72 Peers 79.92

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AFSI is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AFSI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AFSI 1.01 Peers 1.20   AFSI 60.38 Peers -0.10

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AFSI is trading at a discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AFSI has a sales growth rate that significantly exceeds its peers.

 

 

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