AmTrust Financial Services Inc

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AFSI : NASDAQ : Financial
$25.91 -0.25 | -0.96%
Today's Range: 25.79 - 26.28
Avg. Daily Volume: 779,500
08/26/16 - 4:00 PM ET

Financial Analysis


AMTRUST FINANCIAL SERVICES's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry.

At the same time, stockholders' equity ("net worth") has greatly increased by 30.80% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)1398.541113.44
EBITDA ($mil)211.87157.22
EBIT ($mil)182.38138.13
Net Income ($mil)146.3779.39


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1973.461279.88
Total Assets ($mil)21006.9915966.95
Total Debt ($mil)1250.77956.11
Equity ($mil)3230.692469.86


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin15.1514.12
EBITDA Margin15.1414.12
Operating Margin13.0412.41
Sales Turnover0.240.27
Return on Assets2.472.98
Return on Equity14.918.36
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.280.28
Interest Expense21.9311.86
Interest Coverage8.3211.65


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)172.43165.27
Div / share0.150.13
EPS0.780.42
Book value / share18.7414.94
Institutional Own % n/a n/a
Avg Daily Volume782032.0920265.0

Valuation


BUY. AMTRUST FINANCIAL SERVICES's P/E ratio indicates a significant discount compared to an average of 41.69 for the Insurance industry and a significant discount compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 1.37 indicates a discount versus the S&P 500 average of 2.83 and a discount versus the industry average of 1.54. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, AMTRUST FINANCIAL SERVICES proves to trade 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 9.16 Peers 41.69   AFSI 3.15 Peers 10.09

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 7.64 Peers 14.37   AFSI NM Peers 1.74

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AFSI 1.37 Peers 1.54   AFSI 0.90 Peers -1.33

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

AFSI is trading at a discount to its peers.

 

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

AFSI is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AFSI 0.86 Peers 1.40   AFSI 17.40 Peers 3.17

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 significant 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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