AMERISAFE Return On Equity vs. EBITDA
| AMSF Stock | USD 53.70 0.25 0.46% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.21237062 | Current Value 0.22 | Quarterly Volatility 0.06009032 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.95 | 0.8285 |
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| Net Profit Margin | 0.11 | 0.2024 |
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| Operating Profit Margin | 0.96 | 0.9102 |
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| Pretax Profit Margin | 0.14 | 0.2521 |
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| Return On Assets | 0.0296 | 0.0505 |
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| Return On Equity | 0.22 | 0.2124 |
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For AMERISAFE profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AMERISAFE to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AMERISAFE utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AMERISAFE's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AMERISAFE over time as well as its relative position and ranking within its peers.
AMERISAFE |
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AMERISAFE. If investors know AMERISAFE will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AMERISAFE listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.443 | Dividend Share 1.45 | Earnings Share 3.21 | Revenue Per Share 16.5 | Quarterly Revenue Growth 0.083 |
The market value of AMERISAFE is measured differently than its book value, which is the value of AMERISAFE that is recorded on the company's balance sheet. Investors also form their own opinion of AMERISAFE's value that differs from its market value or its book value, called intrinsic value, which is AMERISAFE's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AMERISAFE's market value can be influenced by many factors that don't directly affect AMERISAFE's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AMERISAFE's value and its price as these two are different measures arrived at by different means. Investors typically determine if AMERISAFE is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AMERISAFE's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
AMERISAFE EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AMERISAFE's current stock value. Our valuation model uses many indicators to compare AMERISAFE value to that of its competitors to determine the firm's financial worth. AMERISAFE is number one stock in return on equity category among its peers. It is rated below average in ebitda category among its peers totaling about 417,173,107 of EBITDA per Return On Equity. At this time, AMERISAFE's Return On Equity is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value AMERISAFE by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.AMERISAFE EBITDA vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
AMERISAFE |
| = | 0.19 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
AMERISAFE |
| = | 78.8 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
AMERISAFE EBITDA Comparison
AMERISAFE is currently under evaluation in ebitda category among its peers.
AMERISAFE Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AMERISAFE, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AMERISAFE will eventually generate negative long term returns. The profitability progress is the general direction of AMERISAFE's change in net profit over the period of time. It can combine multiple indicators of AMERISAFE, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -7.2 M | -6.8 M | |
| Operating Income | 279.4 M | 293.3 M | |
| Net Income | 62.1 M | 51.3 M | |
| Income Tax Expense | 15.3 M | 16 M | |
| Income Before Tax | 77.4 M | 65.8 M | |
| Total Other Income Expense Net | -202 M | -191.9 M | |
| Net Income Applicable To Common Shares | 63.9 M | 52.5 M | |
| Net Income From Continuing Ops | 62.1 M | 71.1 M | |
| Change To Netincome | -2.4 M | -2.3 M | |
| Net Income Per Share | 3.24 | 3.08 | |
| Income Quality | 0.48 | 0.46 | |
| Net Income Per E B T | 0.80 | 0.87 |
AMERISAFE Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AMERISAFE. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of AMERISAFE position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the AMERISAFE's important profitability drivers and their relationship over time.
Use AMERISAFE in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AMERISAFE position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AMERISAFE will appreciate offsetting losses from the drop in the long position's value.AMERISAFE Pair Trading
AMERISAFE Pair Trading Analysis
The ability to find closely correlated positions to AMERISAFE could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AMERISAFE when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AMERISAFE - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AMERISAFE to buy it.
The correlation of AMERISAFE is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AMERISAFE moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AMERISAFE moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AMERISAFE can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your AMERISAFE position
In addition to having AMERISAFE in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. For more detail on how to invest in AMERISAFE Stock please use our How to Invest in AMERISAFE guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project AMERISAFE's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AMERISAFE at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include AMERISAFE's income statement, its balance sheet, and the statement of cash flows.