The average target price of AII is 21 and suggests 18% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 23.0. This translates into 31% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 20.0. This suggests 14% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

American Integrity Insurance Group, Inc. is an insurance provider that offers a range of coverage options, including policies for homeowners, new home construction, vacant homes, condos, rental and seasonal dwellings, manufactured homes, and golf carts. The company also provides insurance for watercraft and services like binding arbitration.

American Integrity Insurance Group, Inc.

Financial Services

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 7ppts and its growth decelerated by 4ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 6.8 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

AII has poor trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is unstable and remains favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to negligible return on capital. We note strong debt servicing capacity, solid cash flow generation, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, AII is volatile. In other words, the stock will fall much more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be large. 

In normal market circumstances, AII is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to minimal. 

Considering past and projected metrics, the stock is 'cheaper' than its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITDA, trading at neutral levels on P/FCF. 

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American Integrity Insurance Group, Inc.

$ 17.6

4

American Integrity Insurance Group, Inc.

$ 17.6

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 17.6

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