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 (founded)||New York|
|Market Cap||$1.13 billion|
|Industry||Property and casualty insurance|
|Trailing-12-Month Revenue||$1 billion|
CEO Barry Zyskind
CFO Ronald Pipoly Jr.
|Return on Equity (average, past 3 years)||21.3%|
|Cash/Debt||$234.1 million / $660.4 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Less than two months ago , cnbcgb listed several of AmTrust's positives: "Low pe trailing and future. ... [H]igh recurring income. High ROI. ... Has momentum, which I normally don't chase, but this one is repricing appropriately."
In fact, AmTrust currently sports a cheapish forward P/E of seven. That represents a discount to other insurance stocks like Markel (23.5), Travelers (9.8), and even AIG
CAPS member FoolishMikee elaborates on the bull case:
[T]his $1 billion small-cap will rise as it is more covered, and it grows. Dividends have increased every year since going public in 2006, standing at 'only' 1.73%, however, it's payout ratio (MRQ) stands at a small 14%, and I believe in the CEO's statement in full year 2010 conference call: "we're confident that the model we have built is in very good shape ... continue to creating very good returns to our shareholders."
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