New Lifetime High Today: AmTrust Financial Services (AFSI)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified AmTrust Financial Services ( AFSI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified AmTrust Financial Services as such a stock due to the following factors:

  • AFSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.6 million.
  • AFSI has traded 524,640 shares today.
  • AFSI is trading at a new lifetime high.

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More details on AFSI:

AmTrust Financial Services, Inc., through its subsidiaries, underwrites and provides property and casualty insurance in the United States and internationally. It operates in three segments: Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Program. The stock currently has a dividend yield of 1.6%. AFSI has a PE ratio of 11. Currently there are 4 analysts that rate AmTrust Financial Services a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for AmTrust Financial Services has been 413,000 shares per day over the past 30 days. AmTrust Financial Services has a market cap of $5.3 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.38 and a short float of 17.3% with 9.33 days to cover. Shares are up 14.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AmTrust Financial Services as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues rose by 17.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although AFSI's debt-to-equity ratio of 0.25 is very low, it is currently higher than that of the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Insurance industry and the overall market, AMTRUST FINANCIAL SERVICES's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Powered by its strong earnings growth of 45.66% and other important driving factors, this stock has surged by 51.68% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AFSI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • AMTRUST FINANCIAL SERVICES has improved earnings per share by 45.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMTRUST FINANCIAL SERVICES increased its bottom line by earning $5.45 versus $3.49 in the prior year. This year, the market expects an improvement in earnings ($5.53 versus $5.45).

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