Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Atlantic American Corporation (AAME)

Company Dividend Discount ModelIndustry: Insurance - LifeSector: Financial Services

Valuation Snapshot

Stable Growth$2.23 - $3.44$2.79
Multi-Stage$4.86 - $5.36$5.10
Blended Fair Value$3.95
Current Price$2.87
Upside37.58%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.25%-6.90%0.020.020.020.020.000.020.020.020.020.02
YoY Growth--0.00%0.00%0.00%0.00%-100.00%-0.98%-0.25%0.00%-0.97%-50.60%
Dividend Yield--1.14%0.69%0.79%0.62%0.00%0.91%0.74%0.59%0.48%0.44%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5.11
(-) Cash Dividends Paid (M)0.41
(=) Cash Retained (M)4.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.020.640.38
Cash Retained (M)4.704.704.70
(-) Cash Required (M)-1.02-0.64-0.38
(=) Excess Retained (M)3.684.064.32
(/) Shares Outstanding (M)21.0921.0921.09
(=) Excess Retained per Share0.170.190.20
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.170.190.20
(=) Adjusted Dividend0.190.210.22
WACC / Discount Rate6.51%6.51%6.51%
Growth Rate-2.00%-1.00%0.00%
Fair Value$2.23$2.79$3.44
Upside / Downside-22.23%-2.62%19.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5.115.065.014.964.914.865.00
Payout Ratio7.99%24.39%40.79%57.20%73.60%90.00%92.50%
Projected Dividends (M)0.411.232.042.833.614.374.63

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.51%6.51%6.51%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)1.151.161.17
Year 2 PV (M)1.761.801.84
Year 3 PV (M)2.282.352.42
Year 4 PV (M)2.692.812.92
Year 5 PV (M)3.033.193.35
PV of Terminal Value (M)91.5296.29101.25
Equity Value (M)102.43107.59112.95
Shares Outstanding (M)21.0921.0921.09
Fair Value$4.86$5.10$5.36
Upside / Downside69.26%77.77%86.63%

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