AmTrust Financial Services Inc

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AFSI : NASDAQ : Financial
$18.35 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1444400.0
03/27/17 - 4:00 PM ET

Financial Analysis


AMTRUST FINANCIAL SERVICES's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)1437.091212.6
EBITDA ($mil)0.0169.1
EBIT ($mil)123.24142.69
Net Income ($mil)114.6572.65


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)0.01548.97
Total Assets ($mil)0.017111.63
Total Debt ($mil)800.371216.56
Equity ($mil)0.02909.06


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin8.5813.95
EBITDA Margin0.013.94
Operating Margin8.5811.77
Sales Turnover0.00.27
Return on Assets0.02.94
Return on Equity0.016.22
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.00.29
Interest Expense0.017.48
Interest Coverage0.08.16


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)170.43175.92
Div / share0.340.15
EPS0.570.37
Book value / share0.016.54
Institutional Own % n/a n/a
Avg Daily Volume1391497.0733029.0

Valuation


BUY. AMTRUST FINANCIAL SERVICES's P/E ratio indicates a significant discount compared to an average of 23.66 for the Insurance industry and a significant discount compared to the S&P 500 average of 26.33. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing 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 7.09 Peers 23.66   AFSI NA Peers 11.75

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 5.56 Peers 15.01   AFSI NM Peers 1.48

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 NA Peers 1.80   AFSI -10.36 Peers -9.54

Neutral. 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.

Ratio not available.

 

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 0.55 Peers 1.43   AFSI 18.24 Peers 15.12

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 exceeds its peers.

 

 

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