Amerisafe Inc

AMERISAFE maintains a conservative capital structure characterized by zero debt, resulting in a debt-to-equity ratio of 0.0. The balance sheet shows total assets of $1.12 billion against total liabilities of $876.4 million, yielding total equity of $246.6 million. Liquidity is supported by $34.2 million in cash and equivalents, though operating cash flow was negative at -$2.7 million for the period. The current ratio is not explicitly provided, but the absence of debt and presence of significant cash reserves suggest adequate short-term solvency despite the negative operating cash flow.

Profitability metrics indicate strong returns on capital, with a return on equity (ROE) of 19.12% and a return on assets (ROA) of 4.2%. The company trades at a price-to-earnings ratio of 13.63 and a price-to-book ratio of 2.61, reflecting a premium valuation relative to book value. Net income for the quarter was $8.15 million on revenue of $80.1 million, demonstrating a healthy net margin. These returns are consistent with a specialized insurance model that likely benefits from underwriting discipline and investment income, although specific cohort median comparisons are not available in the provided data to benchmark these ratios against peers.

Revenue concentration is not detailed by segment or geography in the available data, but the company’s activity is defined as multiline insurance and brokers. The business model relies heavily on risk assessment and inspection processes, with 93.4% of new voluntary business policyholders inspected prior to quoting in 2025. This rigorous underwriting approach suggests a focus on quality outcomes, defined as rapid recovery and return to work for injured employees, which likely supports loss ratio stability. The lack of segment breakdown prevents a detailed analysis of revenue mix, but the multiline nature implies diversification across different insurance lines.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current quarter’s revenue of $80.1 million provides a single data point, but without prior year or quarterly trends, it is not possible to assess year-over-year growth rates or revenue momentum. The company’s share count remains relatively stable, with 18.7 million basic shares and 18.9 million diluted shares outstanding. The negative operating cash flow of -$2.7 million may indicate seasonal timing differences in premium collection or claim payments, which is common in insurance businesses, but the lack of historical context prevents a definitive trend analysis.

Risk assessment highlights medium dilution risk and low liquidity risk. The key flags mention dilution or offering risk, which is corroborated by the difference between basic and diluted shares outstanding, suggesting the presence of stock-based compensation or convertible instruments. Regulatory risk is inherent in the insurance industry, with each state having its own regulatory and adjudicatory system for wage replacement and medical care costs. The company is also subject to new accounting guidance, ASU 2024-03, effective in 2028, which will require enhanced expense disaggregation disclosures.

Recent events include an 8-K filing with material items under code 2.02, indicating a change in financial statement or accounting matters. Analyst sentiment is mixed, with a mean recommendation of 2.75 (on a 1-5 scale) and a mean price target of $36.10, slightly above the current market price of $34.08. There are no strong buy ratings, with one buy and three hold ratings, suggesting cautious optimism among analysts. The company has not adopted any new accounting guidance in 2026, but is preparing for the implementation of ASU 2024-03 in 2028.

No material changes were identified for Amerisafe Inc (AMSF) in the latest analysis cycle. The system explicitly reported "no material change vs prior analysis" after reviewing 17 fields, with four schema-expansion fields excluded from the assessment. Consequently, there are no new WATCHER_SIGNALS or CROSS_SOURCE_SIGNALS to report, and the company's fundamental profile remains stable relative to the previous evaluation period. While the overall assessment indicates stability, the AI analysis components underwent minor revisions. The narrative, conclusion, and key takeaways were modified with a low similarity score of 0.217, suggesting a refresh in the descriptive text rather than a shift in underlying fundamentals. The business summary was also revised, though it retained a high similarity of 0.888, indicating that the core description of the company's operations remains largely consistent. Specifically, the key takeaways section saw a net neutral change, with six new takeaways added and six removed. This churn in qualitative insights does not signal a directional change in the company's outlook but rather an update in the specific points highlighted by the analysis engine. These adjustments are classified as medium severity but do not constitute a material shift in the company's financial or operational status. A negligible adjustment was recorded in the produced market share data, which decreased from approximately 0.00001898% to 0.00001897%, a change of -0.02%. This microscopic fluctuation is statistically insignificant and does not impact the company's competitive positioning. With no analyst coverage, index membership, or significant holder changes noted, Amerisafe Inc continues to operate without major external catalysts or structural alterations.

Revenue demonstrated stability with a 0.4% CAGR from fiscal 2023 to fiscal 2025.

Amerisafe maintains a zero debt-to-equity ratio, indicating a conservative capital structure compared to peers.

Liquidity risk is assessed as low, suggesting adequate short-term financial flexibility for operations.

Cash conversion of 0.23 places Amerisafe in the bottom quartile of its insurance cohort peers.

Free cash flow dropped sharply to $8.9 million in fiscal 2025, down from $29.3 million in fiscal 2023.

The company faces medium dilution risk, which could negatively impact existing shareholder value over time.

Revenue contracted by 2.6% year-over-year in the latest fiscal period, indicating top-line weakness.

Revenue $80.1M; Net margin 10.2%.

• ▍Revenue $80.1M
• ▍Net margin 10.2%

Revenue $235.7M; Net margin 15.6%.

• ▍Revenue $235.7M
• ▍Net margin 15.6%

Revenue $153.7M; Net margin 14.9%.

• ▍Revenue $153.7M
• ▍Net margin 14.9%

Revenue $317.3M; Net margin 14.9%.

• ▍Revenue $317.3M
• ▍Net margin 14.9%

Revenue $309.0M; Net margin 17.9%.

• ▍Revenue $309.0M
• ▍Net margin 17.9%

Revenue $309.0M; Net margin 17.9%.

• ▍Revenue $309.0M
• ▍Net margin 17.9%

Revenue $306.9M; Net margin 20.2%.

• ▍Revenue $306.9M
• ▍Net margin 20.2%

Revenue $306.9M; Net margin 20.2%.

• ▍Revenue $306.9M
• ▍Net margin 20.2%