AmTrust Financial Services Inc

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AFSI : NASDAQ : Financial
$14.0 | %
Today's Range: 13.25 - 14.52
Avg. Daily Volume: 3379000.0
05/26/17 - 4:00 PM ET

Financial Analysis


AMTRUST FINANCIAL SERVICES's gross profit margin for the first quarter of its fiscal year 2017 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.87% from the same quarter last year.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)1440.581286.6
EBITDA ($mil)0.0204.06
EBIT ($mil)109.18178.71
Net Income ($mil)39.2109.05


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)0.01551.55
Total Assets ($mil)23900.018355.72
Total Debt ($mil)0.01021.88
Equity ($mil)3296.463143.26


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin7.5815.86
EBITDA Margin0.015.86
Operating Margin7.5813.89
Sales Turnover0.240.26
Return on Assets1.422.46
Return on Equity8.6613.28
Debt Q1 FY17 Q1 FY16
Current Ratio0.00.0
Debt/Capital0.00.25
Interest Expense0.019.89
Interest Coverage0.08.99


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)170.51175.4
Div / share0.170.15
EPS0.130.56
Book value / share19.3317.92
Institutional Own % n/a n/a
Avg Daily Volume3302271.0664977.0

Valuation


HOLD. AMTRUST FINANCIAL SERVICES's P/E ratio indicates a significant discount compared to an average of 29.46 for the Insurance industry and a significant discount compared to the S&P 500 average of 25.02. Conducting a second comparison, its price-to-book ratio of 0.62 indicates a significant discount versus the S&P 500 average of 3.00 and a discount versus the industry average of 1.80. 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 7.36 Peers 29.46   AFSI NA Peers 10.60

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.

 

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

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AFSI 4.74 Peers 15.34   AFSI NM Peers 1.62

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 0.62 Peers 1.80   AFSI -32.65 Peers 19.97

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 significant discount 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 0.36 Peers 1.41   AFSI 16.58 Peers 11.83

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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