AMERISAFE Inc. Common Stock (AMSF)

FairStock Score: 57/100 — STEADY

Key Financials

Strengths

• Generates $22 million in annual free cash flow (3.8% yield on market cap)
• Solid return on equity of 18.3% above cost of capital
• Attractive 5.4% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 0.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

AMERISAFE Inc. Common Stock is a micro-cap financial services company valued at $586 million. The business generates $325 million in annual revenue with a 2.5% net margin and $22 million in free cash flow. From a quality standpoint, AMERISAFE shows distressed Altman Z-Score of 0.6 warrants caution and adequate 18% ROE. On valuation, the stock is attractively valued at 12.6x earnings, with trades above its Graham Number with a negative 15% margin. Growth dynamics show revenue growing at 10.2% and profit growth of -21.0%. The 5.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates AMERISAFE's consistent 18% ROE at just 13x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $22 million in annual free cash flow (3.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer