Atlantic American Corp (AAME) Stock Analysis
Verdict: AVOID
Severe underwriting losses and micro-cap illiquidity outweigh AAME's deep discount to book value of $4.88 per share.
Investment score: 38/100
Analysis as of
Is Atlantic American Corp stock worth reviewing? AI model thesis
The AI model evaluates Atlantic American Corp (AAME) as an AVOID due to severe underwriting margin compression, 2024 full-year losses of -$4.27M, and high micro-cap illiquidity, despite a low P/B ratio of 0.24x.
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 35/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 30/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 30/100 (weight 10%)
- Risk-Adjusted Return: 25/100 (weight 15%)
Atlantic American Corp opportunities and risks
What speaks for AAME
- Extreme asset discount relative to book value
What speaks against AAME
- Underwriting loss persistence eroding equity
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| AAME | 5.8x | 0.2x | 3.5x | 21.3% | 2.9% | 55.6% |
| HMN | 11.9x | 1.2x | 9.3x | 48.3% | 10.4% | 27.3% |
| Peer median | 11.9x | 1.2x | 9.3x | 48.3% | 10.4% | 27.3% |
Frequently asked questions about Atlantic American Corp (AAME)
Is AAME stock a good investment?
The cached TradeMates AI model rates Atlantic American Corp as AVOID with an investment score of 38/100. The AI model evaluates Atlantic American Corp (AAME) as an AVOID due to severe underwriting margin compression, 2024 full-year losses of -$4.27M, and high micro-cap illiquidity, despite a low P/B ratio of 0.24x. This is algorithmic model output, not personal investment advice.
Is AAME stock a buy?
The TradeMates model verdict for AAME is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.