American Coastal Insurance Corporation Common Stock (ACIC)

FairStock Score: 93/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach insurers as underwriting businesses first and investment vehicles second. American Coastal is a small property and casualty insurer, with 68 employees, focused on coastal homeowners, renters, condos, and commercial residential-association risks. That is a niche, but niches can be profitable if management prices catastrophe risk well. The reported record is volatile: in fiscal year 2023 (period ended 2023-12-31), the company earned $309.9M, or $6.98 per diluted share, on $264.4M of revenue; in fiscal year 2024 (period ended 2024-12-31), net income fell to $75.7M, or $1.54 per share, on $296.7M of revenue; and in fiscal year 2025 (period ended 2025-12-31), it recovered to $106.8M, or $2.15 per share, on $335.4M of revenue. The latest filed quarter, fiscal Q2 2026 (quarter ended 2026-06-30), showed $82.6M of revenue, $21.9M of net income, and $0.44 of diluted EPS, still profitable but below fiscal Q2 2025 (quarter ended 2025-06-30) revenue of $86.5M, net income of $26.4M, and EPS of $0.53. At the 2026-10-13 close of $10.63, FairStock calculates a P/E of 5.26, P/B of 1.46, ROE of 31.65%, and D/E of 0.45. The low multiple and high ROE are attractive, and a 93/100 FairStock score plus the computed TURNAROUND category, based on returning to profit after a loss within the last three years, suggest improvement. But I want margin of safety. A P/B near 1.5 is not a giveaway, and no combined ratio, CET1, or NIM is in the data, so I cannot judge underwriting discipline, reserve adequacy, or capital strength. FairStock's Piotroski F-Score is only 5/9. This is a cheap-looking, volatile insurer; the price is reasonable if earnings persist, but the quality of those earnings is the whole question.

In plain English: American Coastal Insurance sells property and casualty insurance, mainly for coastal homes and condominium associations. It has been profitable lately and earns a lot relative to shareholder money, but sales and profit fell from a year earlier in the latest quarter. At $10.63, the shares look cheap based on recent reported earnings, though not a bargain versus accounting value, and weather and insurance risks remain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer