AmTrust Financial Services Inc

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AFSI : NASDAQ : Financial
$26.71 up 0.16 | 0.6%
Today's Range: 26.5092 - 26.825
Avg. Daily Volume: 687000.0
01/23/17 - 11:13 AM ET

Financial Analysis


AMTRUST FINANCIAL SERVICES's gross profit margin for the third quarter of its fiscal year 2016 has increased 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 34.26% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1416.481234.27
EBITDA ($mil)218.87172.84
EBIT ($mil)183.93149.75
Net Income ($mil)115.13191.5


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1992.21328.08
Total Assets ($mil)21519.5416952.44
Total Debt ($mil)1259.091098.96
Equity ($mil)3521.492622.71


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin15.4514.0
EBITDA Margin15.4514.0
Operating Margin12.9912.13
Sales Turnover0.250.27
Return on Assets2.052.99
Return on Equity11.4218.29
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.260.3
Interest Expense26.0114.98
Interest Coverage7.0710.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)170.43165.82
Div / share0.00.15
EPS0.61.09
Book value / share20.6615.82
Institutional Own % n/a n/a
Avg Daily Volume681627.0667756.0

Valuation


BUY. AMTRUST FINANCIAL SERVICES's P/E ratio indicates a significant discount compared to an average of 28.29 for the Insurance industry and a significant discount compared to the S&P 500 average of 25.41. Conducting a second comparison, its price-to-book ratio of 1.29 indicates a significant discount versus the S&P 500 average of 2.83 and a discount versus the industry average of 1.59. 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 11.55 Peers 28.29   AFSI 3.66 Peers 13.70

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 8.30 Peers 17.48   AFSI NM Peers 1.96

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 1.29 Peers 1.59   AFSI -19.52 Peers 3.97

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 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 0.86 Peers 1.41   AFSI 17.13 Peers 10.39

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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