Fundamental analysis: AMERISAFE, Inc. (AMSF)

Awarener score: 7.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Superb) and growth (Bottom), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

Business has been shrinking at a very fast pace. It's been last-in-rank when measured against peer companies.
AMERISAFE, Inc. business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 7.3

AMSF profit margins -on goods and services sold- are usually very poor. They stand somewhat worse than rival companies.
Business profit on sales tends to be sufficient. It's similar to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain rather normal in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still somewhat better than similar companies.
Profits -before income taxes- are usually excellent considering total sales, and remain encouraging in relation to rivals.
Total net profit tends to be excellent when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 3.9

AMERISAFE, Inc. profit -on goods and services sold- has been growing at a very good pace. It's been close to average when compared to competitors.
In recent years, earnings -on operations- have been growing at an excellent step, which has been better than most comparable firms.
Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- tended to shrink. It turns to be in a very weak position compared to similar stocks.
In past years, profits -before income taxes- tended to shrink. It was worse than most rivals.
In the previous years, growth on total net profit has been negative, and substantially worse when measured against peer companies.
Earnings per share have been shrinking in the past years. It's been in a very weak position compared to industry peers.

Miscellaneous score: 7.0

AMSF had hardly to pay income taxes in relation to profits made in the past years. It's been somewhat better than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.5

AMERISAFE, Inc. usually gets very good returns on the resources it controls. It proves similar to peer firms.
The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
There's usually excellent profitability -in relation to owned resources-. It ranks great when measured against competitors.
In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 7.5

AMSF usually uses almost no genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is non-significant. It stands similar to rival firms.
The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is encouraging in relation to industry peers.
In the past twelve months it paid outstanding dividends, considering the current stock price. It came top-notch against competitors.
In recent years, has slightly cut back dividend payments. The company has behaved lacking compared to similar firms.
Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks mediocre against comparable companies.
The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks below average when measured against competitors.

Balance Sheet score: 5.9

AMERISAFE, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has plenty short-term resources to face short-term obligations. There're no liquidity concerns. It turns to be excellent in relation to similar firms.
All resources are company owned, with virtually no financial debt. Financial position is outstanding. The company could significantly borrow money if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains somewhat better than rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks below average when measured against rivals.
For every dollar of short-term obligations, the company has plenty of dollars in cash and short-term receivables. It's excellent in relation to peer firms.
For every dollar of short-term obligations, the company has plenty of dollars in cash and equivalents, which is somewhat better than similar enterprises.
Usually, sales are on many months credit. It still ranks weak when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes a lot of months from the purchase to charging customers. It happens to be mediocre against peers.
Pays suppliers mostly in cash. It ranks substantially worse when measured against industry peers.
The company pays its suppliers plenty of months before charging its customers, so there's a lot of money invested in working capital. It's in a weak position compared to similar companies.
To what extent normalized EBITDA covers interest expenses is not known. It stands impossible to compare against rival firms.
There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks excellent in relation to similar firms.
Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 6.5

AMERISAFE, Inc. looks reasonable in relation to profits and financial position. It happens to be weak when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
In the past twelve months, the company consumed funds. Either it reinvested in the business or genuine fund generation might be challenging, which stands somewhat worse than similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still below average when measured against industry firms.
In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks almost average when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be weak when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still in a weak position compared to peer companies.

Total score: 6.5

Company at a glance: AMERISAFE, Inc. (AMSF)

Sector, industry: Financial Services, Insurance—Specialty

Market Cap: 0.99 billions

Revenues TTM: 0.30 billions

AMERISAFE, Inc., an insurance holding company, underwrites workers' compensation insurance in the United States. The company's workers' compensation insurance policies provide benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. It serves small to mid-sized employers engaged in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. The company was incorporated in 1985 and is based in DeRidder, Louisiana.