AmTrust Financial Services Inc

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AFSI : NASDAQ : Financial
$13.28 | %
Today's Range: 12.95 - 13.38
Avg. Daily Volume: 1501000.0
09/22/17 - 4:00 PM ET

Financial Analysis


AMTRUST FINANCIAL SERVICES's gross profit margin for the second 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.

During the same period, stockholders' equity ("net worth") has increased by 21.04% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1620.581384.58
EBITDA ($mil)0.0203.37
EBIT ($mil)23.04171.36
Net Income ($mil)22.4138.73


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)2123.441973.46
Total Assets ($mil)25328.221166.83
Total Debt ($mil)1549.251250.77
Equity ($mil)3663.523026.63


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin3.9314.69
EBITDA Margin0.014.68
Operating Margin1.4212.38
Sales Turnover0.230.24
Return on Assets0.952.3
Return on Equity4.9214.89
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.30.29
Interest Expense25.3920.1
Interest Coverage0.918.53


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)195.79172.43
Div / share0.170.15
EPS0.030.73
Book value / share18.7117.55
Institutional Own % n/a n/a
Avg Daily Volume1673370.03519701.0

Valuation


SELL. AMTRUST FINANCIAL SERVICES's P/E ratio indicates a significant discount compared to an average of 51.55 for the Insurance industry and a significant discount compared to the S&P 500 average of 24.93. Conducting a second comparison, its price-to-book ratio of 0.69 indicates a significant discount versus the S&P 500 average of 3.11 and a discount versus the industry average of 1.88. 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 12.46 Peers 51.55   AFSI 4.28 Peers 12.60

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.

 

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 7.41 Peers 17.21   AFSI NM Peers 1.65

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 0.69 Peers 1.88   AFSI -60.16 Peers 206.37

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 0.43 Peers 1.50   AFSI 16.30 Peers 11.40

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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