NEW YORK (
-- American Independence Corporation
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 42.40% is the gross profit margin for AMERICAN INDEPENDENCE CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.80% trails the industry average.
- Net operating cash flow has significantly increased by 27320.00% to $2.72 million when compared to the same quarter last year. In addition, AMERICAN INDEPENDENCE CORP has also vastly surpassed the industry average cash flow growth rate of 5.69%.
- AMIC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
American Independence Corp., through its subsidiaries, engages in the health insurance and reinsurance businesses in the United States. The company provides specialized health coverage and related services to commercial customers and individuals. The company has a P/E ratio of 22.7, equal to the average insurance industry P/E ratio and above the S&P 500 P/E ratio of 17.7. American Independence has a market cap of $50.3 million and is part of the
industry. Shares are up 21% year to date as of the close of trading on Thursday.
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