📊 ACIC Key Takeaways
Is AMERICAN COASTAL INSURANCE Corp (ACIC) a Good Investment?
ACIC shows impressive earnings growth (41% YoY net income increase) with strong operating margins (35.9%), but faces a critical cash flow problem: negative operating cash flow of -$5.7M despite positive net income signals potential earnings quality concerns or unsustainable underwriting dynamics. The disconnect between net income and operating cash flow requires urgent investigation before increasing exposure.
AMERICAN COASTAL INSURANCE shows strong core fundamentals, with double-digit revenue growth, 41.8% operating margin, 31.8% net margin, and net income growing 41.1% year over year. Financial health looks solid given positive free cash flow, meaningful cash reserves, moderate leverage, and strong interest coverage, although insurance earnings can be volatile and dependent on underwriting discipline and catastrophe exposure.
AMERICAN COASTAL INSURANCE Corp Key Strengths (ACIC)
- Strong revenue growth of 13.1% YoY demonstrates market demand
- Exceptional net income growth of 41.1% YoY with net margin of 27.0%
- Conservative leverage with debt/equity of 0.45x and strong interest coverage of 10.9x
- Solid cash position of $117.0M provides operational flexibility
- Strong profitability with 41.8% operating margin, 31.8% net margin, and 33.6% ROE
- High-quality growth as revenue rose 13.1% while net income and EPS grew about 40%, indicating operating leverage
- Solid financial position with $198.76M cash, positive free cash flow of $70.87M, moderate 0.47x debt-to-equity, and 13.0x interest coverage
ACIC Stock Risks: AMERICAN COASTAL INSURANCE Corp Investment Risks
- Negative operating cash flow of -$5.7M despite positive net income signals earnings quality concerns or unsustainable underwriting losses masked by investment gains
- Low returns on capital (ROE 5.8%, ROA 1.9%) indicate capital inefficiency despite high profitability margins
- Free cash flow burn of -$5.9M (-8.2% FCF margin) is unsustainable long-term and could exhaust cash reserves
- Insurance results can be highly exposed to catastrophe losses, reserve development, and reinsurance costs
- Operating cash flow trails reported net income, so sustained cash conversion should be monitored
- Balance sheet leverage is manageable but still material, with $150.00M long-term debt and liabilities representing a large share of assets
Key Metrics to Watch
- Operating cash flow trend and reconciliation with net income (investigate earnings quality)
- Underwriting loss/gain ratio and combined ratio to assess insurance fundamentals
- Investment income contribution to net income and sustainability
- Combined ratio / underwriting profitability and reserve development
- Operating cash flow and free cash flow conversion versus net income
AMERICAN COASTAL INSURANCE Corp (ACIC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ACIC Profit Margin, ROE & Profitability Analysis
ACIC vs Finance Sector: How AMERICAN COASTAL INSURANCE Corp Compares
How AMERICAN COASTAL INSURANCE Corp compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is AMERICAN COASTAL INSURANCE Corp Stock Overvalued? ACIC Valuation Analysis 2026
Based on fundamental analysis, AMERICAN COASTAL INSURANCE Corp has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
AMERICAN COASTAL INSURANCE Corp Balance Sheet: ACIC Debt, Cash & Liquidity
ACIC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: AMERICAN COASTAL INSURANCE Corp's revenue has declined by 60% over the 5-year period, indicating business contraction. The most recent EPS of $6.98 reflects profitable operations.
ACIC Revenue Growth, EPS Growth & YoY Performance
ACIC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 43101 | $178.1M | $7.3M | $0.17 |
| Q1 43101 | $122.6M | $3.9M | $0.18 |
| Q1 2026 | $71.2M | $19.3M | $0.39 |
| Q3 2025 | $82.1M | $28.1M | $0.57 |
| Q2 2025 | $68.7M | $19.1M | $0.39 |
| Q1 2025 | $66.6M | $21.3M | $0.43 |
| Q3 2024 | $52.5M | $10.6M | $0.24 |
| Q2 2024 | $68.7M | $17.8M | $0.39 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AMERICAN COASTAL INSURANCE Corp Dividends, Buybacks & Capital Allocation
ACIC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for AMERICAN COASTAL INSURANCE Corp (CIK: 0001401521)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACIC
What is the AI rating for ACIC?
AMERICAN COASTAL INSURANCE Corp (ACIC) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACIC's key strengths?
Claude: Strong revenue growth of 13.1% YoY demonstrates market demand. Exceptional net income growth of 41.1% YoY with net margin of 27.0%. ChatGPT: Strong profitability with 41.8% operating margin, 31.8% net margin, and 33.6% ROE. High-quality growth as revenue rose 13.1% while net income and EPS grew about 40%, indicating operating leverage.
What are the risks of investing in ACIC?
Claude: Negative operating cash flow of -$5.7M despite positive net income signals earnings quality concerns or unsustainable underwriting losses masked by investment gains. Low returns on capital (ROE 5.8%, ROA 1.9%) indicate capital inefficiency despite high profitability margins. ChatGPT: Insurance results can be highly exposed to catastrophe losses, reserve development, and reinsurance costs. Operating cash flow trails reported net income, so sustained cash conversion should be monitored.
What is ACIC's revenue and growth?
AMERICAN COASTAL INSURANCE Corp reported revenue of $71.2M.
Does ACIC pay dividends?
AMERICAN COASTAL INSURANCE Corp pays dividends, with $36.6M distributed to shareholders in the trailing twelve months.
Where can I find ACIC SEC filings?
Official SEC filings for AMERICAN COASTAL INSURANCE Corp (CIK: 0001401521) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACIC's EPS?
AMERICAN COASTAL INSURANCE Corp has a diluted EPS of $0.39.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ACIC's fundamental grade?
Based on our AI fundamental analysis in June 2026, AMERICAN COASTAL INSURANCE Corp has a A grade with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ACIC stock overvalued or undervalued?
Valuation metrics for ACIC: ROE of 5.8% (sector avg: 12%), net margin of 27.0% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is ACIC's AI grade for 2026?
Our dual AI analysis gives AMERICAN COASTAL INSURANCE Corp a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ACIC's free cash flow?
AMERICAN COASTAL INSURANCE Corp's operating cash flow is $-5.7M, with capital expenditures of $136.0K. FCF margin is -8.2%.
How does ACIC compare to other Finance stocks?
Vs Finance sector averages: Net margin 27.0% (avg: 25%), ROE 5.8% (avg: 12%), current ratio N/A (avg: 1.2).