Amerisafe is an insurance holding company that provides workers' compensation insurance for small- to mid-sized employers engaged in hazardous industries.
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Amerisafe, an insurance holding company, provides workers' compensation insurance for small- to mid-sized employers engaged in hazardous industries, principally construction, trucking, manufacturing, agriculture, and oil and gas.
It trades for just 14.8 times trailing 12-mo. EPS
The company has grown earnings at a 26-per-cent pace over the long term (using an average of the three-, four-, and five-year EPS growth rates), which the Peter Lynch-based model likes. That model also likes its 0.57 P/E-to-growth ratio
The Martin Zweig-based model likes that EPS growth accelerated in last quarter (61 per cent).
Its 12-month relative strength of 93 impresses the Motley Fool-based strategy, which also likes that its profit margins are high and have been rising (17.5 per cent, vs. 13.3 per cent a year ago, vs. 12.3 per cent two years ago).
The company has a 17-per-cent return on equity
The stock offers a 1.2-per-cent dividend yield.
Amerisafe has a 31 per cent equity/assets ratio, beating the 5 per cent target the Lynch model uses on financials.
It also has a 5.2 per cent return-on-assets ratio, beating the 1-per-cent target the Lynch model uses on financials
John Reese is long AMSF.
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