📊 AAME Key Takeaways
Is Atlantic American Corp. (AAME) a Good Investment?
Atlantic American Corp demonstrates modest profitability with stable revenue growth and positive free cash flow generation, but is constrained by thin margins (2.9% net margin) and weak returns on equity (4.3%). The company's financial health is adequate with a debt-free balance sheet, though limited insider buying activity and declining diluted EPS suggest investor confidence concerns despite net income growth.
Atlantic American Corp shows stable but modest fundamentals, with slight revenue growth, improving net income, positive free cash flow, and a debt-light balance sheet. However, profitability remains thin, returns on equity and assets are low, and interest coverage is not especially strong, which limits the quality of the earnings profile. The company appears financially stable, but the underlying growth and profitability are not strong enough to justify a more bullish fundamental view.
Why Buy Atlantic American Corp. Stock? AAME Key Strengths
- Strong free cash flow generation ($14.7M) with 9.3% FCF margin, providing financial flexibility
- Debt-free capital structure with zero long-term debt and healthy equity base of $109.5M
- Positive net income growth of 8.5% YoY with stable revenue, indicating operational improvement
- Positive year-over-year revenue and net income growth with consistent profitability
- Solid free cash flow generation relative to earnings, indicating decent cash conversion
- Conservative balance sheet with no meaningful long-term debt and a positive equity base
AAME Stock Risks: Atlantic American Corp. Investment Risks
- Severely diluted EPS declined 666.7% YoY despite net income growth, signaling significant share issuance or equity dilution
- Thin profit margins (2.9% net, 3.8% operating) and weak returns (4.3% ROE, 1.1% ROA) indicate operational inefficiency
- No insider Form 4 activity in last 90 days suggests limited confidence from company insiders in fundamental value
- Low operating and net margins leave limited cushion against underwriting or expense pressure
- ROE and ROA are weak, suggesting limited efficiency in generating returns from capital and assets
- Interest coverage of 2.6x indicates only moderate ability to absorb earnings volatility
Key Metrics to Watch
- Net margin trend and operating leverage improvement
- Share count changes and dilution drivers
- Return on equity trajectory and capital efficiency
- Net margin and operating margin trend
- Free cash flow consistency versus reported net income
Atlantic American Corp. (AAME) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AAME Profit Margin, ROE & Profitability Analysis
AAME vs Finance Sector: How Atlantic American Corp. Compares
How Atlantic American Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Atlantic American Corp. Stock Overvalued? AAME Valuation Analysis 2026
Based on fundamental analysis, Atlantic American Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Atlantic American Corp. Balance Sheet: AAME Debt, Cash & Liquidity
AAME Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Atlantic American Corp.'s revenue has remained relatively flat over the 5-year period, with a 5% decline. The most recent EPS of $-0.03 indicates the company is currently unprofitable.
AAME Revenue Growth, EPS Growth & YoY Performance
AAME Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $44.5M | $577.0K | $0.02 |
| Q2 2025 | $47.7M | -$684.0K | $-0.04 |
| Q1 2025 | $47.0M | $802.0K | $0.03 |
| Q3 2024 | $44.5M | $1.8M | $0.08 |
| Q2 2024 | $47.7M | $298.0K | $0.00 |
| Q1 2024 | $46.3M | -$1.4M | $-0.08 |
| Q3 2023 | $44.6M | $479.0K | $0.01 |
| Q2 2023 | $44.7M | $298.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Atlantic American Corp. Dividends, Buybacks & Capital Allocation
AAME SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Atlantic American Corp. (CIK: 0000008177)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AAME
What is the AI rating for AAME?
Atlantic American Corp. (AAME) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AAME's key strengths?
Claude: Strong free cash flow generation ($14.7M) with 9.3% FCF margin, providing financial flexibility. Debt-free capital structure with zero long-term debt and healthy equity base of $109.5M. ChatGPT: Positive year-over-year revenue and net income growth with consistent profitability. Solid free cash flow generation relative to earnings, indicating decent cash conversion.
What are the risks of investing in AAME?
Claude: Severely diluted EPS declined 666.7% YoY despite net income growth, signaling significant share issuance or equity dilution. Thin profit margins (2.9% net, 3.8% operating) and weak returns (4.3% ROE, 1.1% ROA) indicate operational inefficiency. ChatGPT: Low operating and net margins leave limited cushion against underwriting or expense pressure. ROE and ROA are weak, suggesting limited efficiency in generating returns from capital and assets.
What is AAME's revenue and growth?
Atlantic American Corp. reported revenue of $159.2M.
Does AAME pay dividends?
Atlantic American Corp. pays dividends, with $0.4M distributed to shareholders in the trailing twelve months.
Where can I find AAME SEC filings?
Official SEC filings for Atlantic American Corp. (CIK: 0000008177) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AAME's EPS?
Atlantic American Corp. has a diluted EPS of $0.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AAME a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Atlantic American Corp. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AAME stock overvalued or undervalued?
Valuation metrics for AAME: ROE of 4.3% (sector avg: 12%), net margin of 2.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy AAME stock in 2026?
Our dual AI analysis gives Atlantic American Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AAME's free cash flow?
Atlantic American Corp.'s operating cash flow is $15.2M, with capital expenditures of $465.0K. FCF margin is 9.3%.
How does AAME compare to other Finance stocks?
Vs Finance sector averages: Net margin 2.9% (avg: 25%), ROE 4.3% (avg: 12%), current ratio N/A (avg: 1.2).