Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, insurance holding company AmTrust Financial Services
With that in mind, let's take a closer look at AmTrust's business and see what CAPS investors are saying about the stock right now.
|Headquarters||New York, N.Y.|
|Market Cap||$896.1 million|
|Industry||Property and casualty insurance|
|Trailing-12-Month Revenue||$834.6 million|
President/CEO Barry Zyskind
CFO Ronald Pipoly, Jr.
|Return on Equity (Average, Past 3 Years)||21.7%|
|Cash/Debt||$317.4 million / $557.35 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Less than two months ago, Stender89 advised Fools to trust in AmTrust: "This is just a beautifully run business in the very likable insurance industry. Low combined ratio, shareholder-focused management with huge stake in the company. Count me in."
In fact, AmTrust's three-year average return on equity (21.7%) easily bests that of insurance rivals Assurant (11.7%), Travelers (12.9%), AIG (-50.5%), and even longtime Foolish favorite Markel (5.1%). To be sure, AmTrust's shares currently seem to reflect that operational edge, trading at a price-to-book premium to each of those same competitors. Of course, with as many positives as JPNot believes it has, AmTrust could still be a reasonable long-term opportunity:
The company operates in three segments: Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Middle Market Business. The company does a lot of worker's comp insurance for really small companies who are less likely to lay off workers, so they seem to have a good niche going. Here is another great growth company with a low PE. ... Company has some debt, but pays a nice dividend.
What do you think about AmTrust, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Markel is a Motley Fool Inside Value pick, and the Fool owns shares of it. Try any of our Foolish newsletter services free for 30 days.
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