AmTrust Financial Services Inc

Find Ratings Reports
AFSI : NASDAQ : Financial
$24.08 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 810,700
07/28/16 - 4:00 PM ET

Financial Analysis


AMTRUST FINANCIAL SERVICES's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

At the same time, stockholders' equity ("net worth") has greatly increased by 27.63% from the same quarter last year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)1286.61123.86
EBITDA ($mil)204.06199.87
EBIT ($mil)178.71180.45
Net Income ($mil)109.05160.07


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1551.551426.33
Total Assets ($mil)18355.7214811.68
Total Debt ($mil)1021.88609.59
Equity ($mil)3143.262462.74


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin15.8617.78
EBITDA Margin15.8617.78
Operating Margin13.8916.06
Sales Turnover0.260.29
Return on Assets2.463.41
Return on Equity13.2819.86
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.250.2
Interest Expense19.8912.44
Interest Coverage8.9914.5


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)175.4164.69
Div / share0.150.13
EPS0.560.93
Book value / share17.9214.95
Institutional Own % n/a n/a
Avg Daily Volume829060.0869139.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 15.99 for the Insurance industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 1.37 indicates a discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 1.55. 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 10.10 Peers 15.99   AFSI 2.94 Peers 12.79

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 7.29 Peers 14.71   AFSI NM Peers 1.76

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 1.55   AFSI -19.24 Peers 39.96

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.

 

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 0.89 Peers 1.45   AFSI 13.67 Peers -2.98

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.

 

 

Latest Stock Upgrades/Downgrades