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ACIC Stock Analysis: Top Small-Cap Hold (Score 57.3/100) | Blank Capital Research | Blank Capital Research
ACIC
AMERICAN COASTAL INSURANCE Corp
$11.47
-0.26 (-2.22%)
Score57.3
Data as of Apr 6, 2026
ACIC
AMERICAN COASTAL INSURANCE Corp
FinancialsInsurance
$11.47
-0.26 (-2.22%)
Open $11.70High $11.76Low $11.37Prev $11.73Vol ---52W: $9.97 – $13.06
Hold
Composite score
01234567890123456789.0123456789
Global rank
#784
Percentile
Top 18%
Business quality
77th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 77.1GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
34.1%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, AMERICAN COASTAL INSURANCE Corp (ACIC) receives a "Hold" rating with a composite score of 57.3/100, ranked #784 out of 4446 stocks. Key factor scores: Quality 77/100, Value 79/100, Momentum 37/100. This is quantitative analysis only — not investment advice.
AMERICAN COASTAL INSURANCE Corp (ACIC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does AMERICAN COASTAL INSURANCE Corp Do?
American Coastal Insurance Corporation operates as a property and casualty insurance holding company that sources, writes, and services residential personal and commercial property, and casualty insurance policies in the United States. The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners. It also provides commercial multi-peril property insurance for residential condominium associations and apartments, as well as loss or damage to buildings, inventory, and equipment caused by fire, wind, hail, water, theft, and vandalism. In addition, the company offers equipment breakdown, identity theft, cyber security, and flood policies. The company markets and distributes its products through a network of independent agencies. The company was formerly known as United Insurance Holdings Corp. and changed its name to American Coastal Insurance Corporation in August 2023. American Coastal Insurance Corporation was founded in 1999 and is headquartered in Saint Petersburg, Florida. AMERICAN COASTAL INSURANCE Corp (ACIC) is classified as a small-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Robert D. Peed and employs approximately 470 people, headquartered in SAINT PETERSBURG, Florida. With a market capitalization of $535M, ACIC is one of the notable companies in the Financials sector.
AMERICAN COASTAL INSURANCE Corp (ACIC) Stock Rating — Hold (April 2026)
As of April 2026, AMERICAN COASTAL INSURANCE Corp receives a Hold rating with a composite score of 57.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ACIC ranks #784 out of 4,446 stocks in our coverage universe. Within the Financials sector, AMERICAN COASTAL INSURANCE Corp ranks #231 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ACIC Stock Price and 52-Week Range
AMERICAN COASTAL INSURANCE Corp (ACIC) currently trades at $11.47. The stock lost $0.26 (2.2%) in the most recent trading session. The 52-week high for ACIC is $13.05, which means the stock is currently trading -12.1% from its annual peak. The 52-week low is $9.97, putting the stock 15.0% above its annual trough. Recent trading volume was 112K shares, suggesting relatively thin trading activity.
Is ACIC Overvalued or Undervalued? — Valuation Analysis
AMERICAN COASTAL INSURANCE Corp (ACIC) carries a value factor score of 79/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 5.12x, compared to the Financials sector average of 14.88x — a discount of 66%. The price-to-book ratio stands at 1.75x, versus the sector average of 1.22x. The price-to-sales ratio is 1.68x, compared to 0.90x for the average Financials stock. On an enterprise value basis, ACIC trades at 4.81x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, AMERICAN COASTAL INSURANCE Corp appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
AMERICAN COASTAL INSURANCE Corp Profitability — ROE, Margins, and Quality Score
AMERICAN COASTAL INSURANCE Corp (ACIC) earns a quality factor score of 77/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 34.1%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 10.1% versus the sector average of 1.2%.
On a margin basis, AMERICAN COASTAL INSURANCE Corp reports gross margins of 0.0%. The operating margin is 41.7% (sector: 21.8%). Net profit margin stands at 32.6%, versus 17.7% for the average Financials stock. Revenue growth is running at 31.7% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
ACIC Debt, Balance Sheet, and Financial Health
AMERICAN COASTAL INSURANCE Corp has a debt-to-equity ratio of 47.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.42x, suggesting adequate working capital coverage. Total debt on the balance sheet is $150M. Cash and equivalents stand at $268M.
ACIC has a beta of 0.39, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for AMERICAN COASTAL INSURANCE Corp is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
AMERICAN COASTAL INSURANCE Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, AMERICAN COASTAL INSURANCE Corp reported revenue of $331M and earnings per share (EPS) of $2.20. Net income for the quarter was $108M. Gross margin was 0.0%. Operating income came in at $139M.
In FY 2025, AMERICAN COASTAL INSURANCE Corp reported revenue of $335M and earnings per share (EPS) of $2.20. Net income for the quarter was $107M. Revenue grew 13.1% year-over-year compared to FY 2024. Operating income came in at $140M.
In Q3 2025, AMERICAN COASTAL INSURANCE Corp reported revenue of $90M and earnings per share (EPS) of $0.67. Net income for the quarter was $32M. Revenue grew 10.1% year-over-year compared to Q3 2024. Operating income came in at $42M.
In Q2 2025, AMERICAN COASTAL INSURANCE Corp reported revenue of $86M and earnings per share (EPS) of $0.55. Net income for the quarter was $26M. Revenue grew 25.9% year-over-year compared to Q2 2024. Operating income came in at $36M.
Over the past 8 quarters, AMERICAN COASTAL INSURANCE Corp has demonstrated a growth trajectory, with revenue expanding from $69M to $331M. Investors analyzing ACIC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ACIC Dividend Yield and Income Analysis
AMERICAN COASTAL INSURANCE Corp (ACIC) does not currently pay a dividend. This is common among smaller companies in the Insurance industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
ACIC Momentum and Technical Analysis Profile
AMERICAN COASTAL INSURANCE Corp (ACIC) has a momentum factor score of 37/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 26/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ACIC vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing ACIC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ACIC vs S&P 500 (SPY) comparison to assess how AMERICAN COASTAL INSURANCE Corp stacks up against the broader market across all factor dimensions.
ACIC Next Earnings Date
No upcoming earnings date has been announced for AMERICAN COASTAL INSURANCE Corp (ACIC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ACIC? — Investment Thesis Summary
AMERICAN COASTAL INSURANCE Corp presents a balanced picture with arguments on both sides. The quality score of 77/100 indicates above-average profitability and business fundamentals. The value score of 79/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 37/100, a headwind for near-term performance. Low volatility (stability score 82/100) reduces downside risk.
In summary, AMERICAN COASTAL INSURANCE Corp (ACIC) earns a Hold rating with a composite score of 57.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ACIC stock.
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Institutional Research Dossier
AMERICAN COASTAL INSURANCE Corp (ACIC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
American Coastal Insurance Corporation (ACIC) receives a Hold rating, driven by a mixed assessment of its financial performance and strategic positioning. While the company exhibits strong profitability metrics and trades at a significant discount to its sector on valuation multiples, concerns regarding its momentum and capital allocation temper our enthusiasm. The insurance industry is inherently cyclical and susceptible to unpredictable catastrophic events, making a neutral stance prudent given ACIC's focus on property and casualty insurance.
The company's impressive profitability and low valuation multiples suggest potential upside, but the relatively weak momentum score and negative free cash flow raise concerns about its near-term growth prospects and financial flexibility. A Hold rating reflects the balance between ACIC's attractive valuation and profitability against the risks inherent in its business model and the broader insurance market.
Business Strategy & Overview
American Coastal Insurance Corporation operates as a property and casualty insurance holding company, focusing on sourcing, writing, and servicing residential and commercial property insurance policies in the United States. The company's core business involves providing coverage for homeowners, renters, and condominium owners, as well as commercial multi-peril property insurance for residential condominium associations and apartments. This includes protection against losses or damages to buildings, inventory, and equipment caused by various perils such as fire, wind, hail, water, theft, and vandalism. ACIC also offers ancillary products like equipment breakdown, identity theft, cyber security, and flood policies, expanding its service offerings and revenue streams.
The company distributes its products through a network of independent agencies, a common strategy in the insurance industry that allows for broader market reach and localized expertise. This distribution model relies on building and maintaining strong relationships with these agencies, ensuring they are well-equipped to sell and service ACIC's insurance products. The strategic focus on specific geographic regions, particularly those prone to natural disasters, necessitates robust risk management and underwriting practices to mitigate potential losses.
ACIC's strategic positioning within the property and casualty insurance market requires careful navigation of regulatory requirements, competitive pressures, and evolving consumer preferences. The company must continuously adapt its underwriting models and pricing strategies to accurately assess and manage risk, while also ensuring its products remain competitive and attractive to customers. Furthermore, the company's recent name change from United Insurance Holdings Corp. to American Coastal Insurance Corporation suggests a potential shift in branding or strategic focus, which could impact its market perception and growth trajectory.
The insurance industry is characterized by intense competition, with numerous national and regional players vying for market share. ACIC's ability to differentiate itself through superior customer service, innovative product offerings, or more efficient underwriting processes will be crucial for its long-term success. The company must also invest in technology and data analytics to improve its risk assessment capabilities and streamline its operations, enhancing its competitive edge in a rapidly evolving market.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
31.7%
Sector: 9.4%
+238% VS SCTR
Economic Moat Analysis
American Coastal Insurance Corporation's economic moat is likely narrow, stemming primarily from intangible assets and potentially switching costs. The insurance industry, in general, does not lend itself to wide moats due to the commoditized nature of the product and the ease with which customers can switch providers. However, ACIC's brand reputation and relationships with its network of independent agencies could provide a slight competitive advantage.
The strength of ACIC's brand, particularly within its target markets, can create a degree of customer loyalty and trust. A well-established brand can reduce customer acquisition costs and improve retention rates, providing a modest barrier to entry for new competitors. Furthermore, the company's relationships with its independent agencies are crucial for distribution and customer service. These relationships, built over time, can be difficult for competitors to replicate, giving ACIC a slight edge in reaching and serving its target customers.
Switching costs in the insurance industry are relatively low, as customers can easily compare prices and coverage options from different providers. However, the hassle of switching, combined with the potential loss of loyalty discounts or bundled services, can create some inertia. ACIC's ability to provide superior customer service and personalized attention through its independent agency network can further increase switching costs, making customers less likely to seek alternative providers.
The property and casualty insurance market is highly competitive, with numerous players offering similar products and services. This intense competition limits ACIC's ability to raise prices or generate excess profits. While the company's focus on specific geographic regions and niche markets may provide some insulation from broader competitive pressures, it also exposes it to concentrated risks associated with those regions and markets. Overall, ACIC's economic moat is likely narrow, providing a limited but tangible competitive advantage.
The company's ability to maintain and strengthen its relationships with independent agencies will be critical for sustaining its narrow moat. Investing in technology and training to support these agencies, as well as providing competitive commission structures, can help ensure their continued loyalty and commitment to selling ACIC's products. Furthermore, the company must continuously monitor and adapt to changing market conditions and consumer preferences to maintain its competitive edge.
Financial Health & Profitability
American Coastal Insurance Corporation demonstrates a mixed financial profile. The company's revenue has shown strong growth, with a 31.7% increase compared to the sector average of 9.3%. This growth is evident in the quarterly financial history, with revenue increasing steadily from FY2024 to FY2025. However, the company's free cash flow is negative at -$36.00M, which is a point of concern. While the quarterly data shows positive free cash flow in Q1 and Q2 of FY2023, the absence of FCF data for subsequent periods makes it difficult to assess the sustainability of this metric.
Profitability metrics are robust, with a net margin of 32.6% compared to the sector average of 17.8%, and an operating margin of 41.7% versus the sector's 22.0%. The company's ROE of 34.1% significantly exceeds the sector average of 8.5%, indicating efficient use of equity. The quarterly operating margins have been consistently high, ranging from 33.6% to 46.1%, suggesting strong operational efficiency.
ACIC's balance sheet appears healthy, with total cash of $267.87M and total debt of $150.00M. The current ratio of 1.42 indicates sufficient liquidity to cover short-term obligations. The debt-to-equity ratio of 47.00 is significantly lower than the sector average of 115.00, suggesting a conservative capital structure.
The company's gross margin is reported as 0.0%, which is unusual for an insurance company. This could be due to the way the company reports its financials or the specific accounting practices it employs. Further investigation into this metric is warranted to understand the underlying drivers.
Overall, ACIC's financial health is characterized by strong profitability, solid revenue growth, and a healthy balance sheet. However, the negative free cash flow and the unusual gross margin require further scrutiny. The company's ability to maintain its profitability and manage its cash flow will be crucial for its long-term financial stability.
Valuation Assessment
American Coastal Insurance Corporation appears significantly undervalued based on several key valuation metrics. The company's P/E ratio of 5.0x is substantially lower than the sector average of 15.5x, suggesting that the market is not fully recognizing its earnings potential. Similarly, the EV/EBITDA ratio of 1.2x is significantly below the sector average of 3.5x, indicating that the company's enterprise value is low relative to its earnings before interest, taxes, depreciation, and amortization.
These low valuation multiples could be attributed to several factors, including concerns about the company's negative free cash flow, its exposure to volatile property and casualty insurance markets, or its relatively small market capitalization. However, the company's strong profitability and revenue growth suggest that the market may be undervaluing its intrinsic worth.
A discounted cash flow (DCF) analysis would be necessary to determine a more precise estimate of the company's fair value. However, given the negative free cash flow, this analysis would require careful consideration of the company's future growth prospects and its ability to generate positive cash flow in the long term.
Compared to its historical valuation, ACIC's current multiples are also low. While historical data is limited, the company's recent performance suggests that its earnings and cash flow potential may be higher than what the market is currently pricing in. The strong revenue growth and high profitability margins support this view.
Overall, ACIC appears to be undervalued based on its P/E and EV/EBITDA ratios. However, the negative free cash flow and the inherent risks of the insurance industry warrant caution. A more thorough valuation analysis, including a DCF model and a sensitivity analysis of key assumptions, would be necessary to determine a more accurate estimate of the company's fair value.
Risk & Uncertainty
American Coastal Insurance Corporation faces several specific risks inherent to its business model and the broader insurance industry. One of the most significant risks is its exposure to catastrophic events, such as hurricanes, floods, and wildfires. These events can result in substantial claims losses, which can negatively impact the company's profitability and financial stability. The company's focus on coastal regions, particularly in Florida, increases its vulnerability to these types of events.
Regulatory risk is also a significant concern. The insurance industry is heavily regulated at both the state and federal levels. Changes in regulations, such as those related to pricing, underwriting, or capital requirements, can significantly impact the company's operations and profitability. Furthermore, the company's ability to obtain and maintain the necessary licenses and approvals to operate in its target markets is crucial for its continued success.
Competition is another key risk. The property and casualty insurance market is highly competitive, with numerous national and regional players vying for market share. ACIC faces competition from larger, more established companies with greater financial resources and brand recognition. The company's ability to differentiate itself through superior customer service, innovative product offerings, or more efficient underwriting processes will be crucial for its long-term success.
Reinsurance costs also pose a risk. Insurance companies often purchase reinsurance to protect themselves against large losses from catastrophic events. The cost of reinsurance can fluctuate significantly depending on market conditions and the perceived risk of future events. An increase in reinsurance costs can negatively impact the company's profitability.
Finally, the company's reliance on independent agencies for distribution creates a potential risk. The company's success depends on maintaining strong relationships with these agencies and ensuring they are well-equipped to sell and service its insurance products. Any disruption in these relationships could negatively impact the company's sales and market share.
Bulls Say / Bears Say
The Bull Case
BULL VIEWACIC's extremely low P/E and EV/EBITDA multiples compared to the sector suggest significant undervaluation, offering substantial upside potential as the market recognizes its true earnings power.
BULL VIEWThe company's impressive ROE and operating margins demonstrate superior profitability and efficiency, indicating a well-managed business capable of generating strong returns for shareholders.
The Bear Case
BEAR VIEWACIC's negative free cash flow raises concerns about its financial flexibility and ability to fund future growth initiatives without relying on debt or equity financing.
BEAR VIEWThe company's concentration in coastal regions exposes it to significant risk from catastrophic events, which could lead to substantial claims losses and negatively impact its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ACIC and 4,400+ other equities.
AMERICAN COASTAL INSURANCE Corp exhibits a 28% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
10.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
41.7%
Sector: 21.8%
Net Margin
Bottom-line profitability
32.6%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
