AmTrust Financial Services Inc

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AFSI : NASDAQ : Financial
$16.07 -0.19 | -1.2%
Today's Range: 16.05 - 16.3
Avg. Daily Volume: 2657500.0
07/26/17 - 1:47 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 ($mil)1440.581271.21
EBITDA ($mil)150.02182.26
EBIT ($mil)109.18154.4
Net Income ($mil)39.292.77


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1681.661551.55
Total Assets ($mil)23884.2718355.72
Total Debt ($mil)1829.931021.88
Equity ($mil)3296.463143.26


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin10.4114.34
EBITDA Margin10.4114.33
Operating Margin7.5812.15
Sales Turnover0.240.26
Return on Assets1.492.2
Return on Equity9.1511.75
Debt Q1 FY17 Q1 FY16
Current Ratio0.00.0
Debt/Capital0.360.25
Interest Expense25.1818.06
Interest Coverage4.348.55


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)171.24175.4
Div / share0.170.15
EPS0.130.47
Book value / share19.2517.92
Institutional Own % n/a n/a
Avg Daily Volume2616641.02748117.0

Valuation


SELL. AMTRUST FINANCIAL SERVICES's P/E ratio indicates a significant discount compared to an average of 29.89 for the Insurance industry and a significant discount compared to the S&P 500 average of 24.66. Conducting a second comparison, its price-to-book ratio of 0.82 indicates a significant discount versus the S&P 500 average of 3.07 and a discount versus the industry average of 1.91. 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 9.03 Peers 29.89   AFSI 5.41 Peers 11.69

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 7.52 Peers 16.36   AFSI NM Peers 2.85

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 0.82 Peers 1.91   AFSI -19.07 Peers 19.96

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 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 0.48 Peers 1.51   AFSI 18.24 Peers 12.67

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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