📊 ACIC Key Takeaways
Is AMERICAN COASTAL INSURANCE Corp (ACIC) a Good Investment?
ACIC demonstrates exceptional fundamental strength with accelerating profitability (41.1% YoY net income growth) and industry-leading margins (31.8% net margin, 41.8% operating margin) driven by solid premium revenue growth (13.1% YoY). The company maintains a fortress balance sheet with conservative leverage (0.47x debt/equity), strong liquidity (198.8M cash), and outstanding returns on equity (33.6%) and assets (10.0%), supported by robust free cash flow generation (70.9M, 21.1% FCF margin).
AMERICAN COASTAL INSURANCE shows strong core fundamentals, with double-digit revenue growth, 41.8% operating margin, 31.8% net margin, and net income growing 41.1% year over year. Financial health looks solid given positive free cash flow, meaningful cash reserves, moderate leverage, and strong interest coverage, although insurance earnings can be volatile and dependent on underwriting discipline and catastrophe exposure.
Why Buy AMERICAN COASTAL INSURANCE Corp Stock? ACIC Key Strengths
- Exceptional profitability acceleration with 41.1% YoY net income growth and 31.8% net margin far above industry average
- Strong operational leverage demonstrated by 41.8% operating margin on growing 335.4M revenue base
- Conservative capital structure with 0.47x debt/equity ratio and 13.0x interest coverage providing substantial financial flexibility
- Robust cash generation with 70.9M free cash flow representing 21.1% of revenue
- Outstanding shareholder returns with 33.6% ROE and 10.0% ROA indicating superior capital efficiency
- Solid premium revenue growth of 13.1% YoY indicating strong market position and pricing power
- Strong profitability with 41.8% operating margin, 31.8% net margin, and 33.6% ROE
- High-quality growth as revenue rose 13.1% while net income and EPS grew about 40%, indicating operating leverage
- Solid financial position with $198.76M cash, positive free cash flow of $70.87M, moderate 0.47x debt-to-equity, and 13.0x interest coverage
ACIC Stock Risks: AMERICAN COASTAL INSURANCE Corp Investment Risks
- Insurance sector cyclicality and exposure to catastrophic loss events that could materially impact underwriting results
- Elevated long-term debt of 150.0M relative to equity base (47% of equity) requires monitoring despite manageable leverage
- Limited visibility into loss reserves adequacy and reserve development trends from provided metrics
- Significant insider activity (8 Form 4 filings in 90 days) warrants scrutiny for timing and context of transactions
- Insurance results can be highly exposed to catastrophe losses, reserve development, and reinsurance costs
- Operating cash flow trails reported net income, so sustained cash conversion should be monitored
- Balance sheet leverage is manageable but still material, with $150.00M long-term debt and liabilities representing a large share of assets
Key Metrics to Watch
- Combined ratio trend (crucial for insurance profitability; current data suggests excellent underwriting)
- Net income and operating margin sustainability as revenue growth decelerates from 13.1% pace
- Loss reserve development and claims trends across book of business
- Free cash flow stability and capital allocation priorities (dividends vs. debt reduction vs. growth investment)
- Combined ratio / underwriting profitability and reserve development
- Operating cash flow and free cash flow conversion versus net income
AMERICAN COASTAL INSURANCE Corp (ACIC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 21.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ACIC Profit Margin, ROE & Profitability Analysis
ACIC vs Finance Sector: How AMERICAN COASTAL INSURANCE Corp Compares
How AMERICAN COASTAL INSURANCE Corp compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is AMERICAN COASTAL INSURANCE Corp Stock Overvalued? ACIC Valuation Analysis 2026
Based on fundamental analysis, AMERICAN COASTAL INSURANCE Corp appears fundamentally strong 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.
AMERICAN COASTAL INSURANCE Corp Balance Sheet: ACIC Debt, Cash & Liquidity
ACIC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: AMERICAN COASTAL INSURANCE Corp's revenue has declined by 60% over the 5-year period, indicating business contraction. The most recent EPS of $6.98 reflects profitable operations.
ACIC Revenue Growth, EPS Growth & YoY Performance
ACIC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 43101 | $178.1M | $7.3M | $0.17 |
| Q1 43101 | $122.6M | $3.9M | $0.18 |
| Q3 2025 | $82.1M | $28.1M | $0.57 |
| Q2 2025 | $68.7M | $19.1M | $0.39 |
| Q1 2025 | $66.6M | $21.3M | $0.43 |
| Q3 2024 | $52.5M | $10.6M | $0.24 |
| Q2 2024 | $68.7M | $17.8M | $0.39 |
| Q1 2024 | $73.2M | $23.6M | $0.48 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AMERICAN COASTAL INSURANCE Corp Dividends, Buybacks & Capital Allocation
ACIC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for AMERICAN COASTAL INSURANCE Corp (CIK: 0001401521)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACIC
What is the AI rating for ACIC?
AMERICAN COASTAL INSURANCE Corp (ACIC) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACIC's key strengths?
Claude: Exceptional profitability acceleration with 41.1% YoY net income growth and 31.8% net margin far above industry average. Strong operational leverage demonstrated by 41.8% operating margin on growing 335.4M revenue base. ChatGPT: Strong profitability with 41.8% operating margin, 31.8% net margin, and 33.6% ROE. High-quality growth as revenue rose 13.1% while net income and EPS grew about 40%, indicating operating leverage.
What are the risks of investing in ACIC?
Claude: Insurance sector cyclicality and exposure to catastrophic loss events that could materially impact underwriting results. Elevated long-term debt of 150.0M relative to equity base (47% of equity) requires monitoring despite manageable leverage. ChatGPT: Insurance results can be highly exposed to catastrophe losses, reserve development, and reinsurance costs. Operating cash flow trails reported net income, so sustained cash conversion should be monitored.
What is ACIC's revenue and growth?
AMERICAN COASTAL INSURANCE Corp reported revenue of $335.4M.
Does ACIC pay dividends?
AMERICAN COASTAL INSURANCE Corp does not currently pay dividends.
Where can I find ACIC SEC filings?
Official SEC filings for AMERICAN COASTAL INSURANCE Corp (CIK: 0001401521) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACIC's EPS?
AMERICAN COASTAL INSURANCE Corp has a diluted EPS of $2.15.
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 ACIC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, AMERICAN COASTAL INSURANCE Corp has a BUY rating with 84% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ACIC stock overvalued or undervalued?
Valuation metrics for ACIC: ROE of 33.6% (sector avg: 12%), net margin of 31.8% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy ACIC stock in 2026?
Our dual AI analysis gives AMERICAN COASTAL INSURANCE Corp a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ACIC's free cash flow?
AMERICAN COASTAL INSURANCE Corp's operating cash flow is $71.0M, with capital expenditures of $155.0K. FCF margin is 21.1%.
How does ACIC compare to other Finance stocks?
Vs Finance sector averages: Net margin 31.8% (avg: 25%), ROE 33.6% (avg: 12%), current ratio N/A (avg: 1.2).
Why is ACIC's return on equity (ROE) so high?
AMERICAN COASTAL INSURANCE Corp has a return on equity of 33.6%, significantly above the Finance sector average of 12%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 31.8% net margin.