Exploring AMERISAFE And Two More Undiscovered Gem Stocks
Recent trends in the U.S. stock market show a notable rally, with indices like the Russell 2000 indicating a robust performance for small-cap stocks, highlighted by significant gains following encouraging economic data and expectations of interest rate cuts. In this environment, identifying stocks with potential for growth—such as AMERISAFE and others—becomes particularly compelling against the backdrop of broader market optimism.
Top 10 Undiscovered Gems With Strong Fundamentals In The United States
Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
River Financial | 131.04% | 17.59% | 20.70% | ★★★★★★ |
Morris State Bancshares | 14.93% | 0.44% | 7.74% | ★★★★★★ |
Omega Flex | NA | 2.13% | 4.77% | ★★★★★★ |
First Northern Community Bancorp | NA | 6.68% | 9.08% | ★★★★★★ |
Teekay | NA | -8.88% | 49.65% | ★★★★★★ |
Mission Bancorp | 25.37% | 16.23% | 20.16% | ★★★★★★ |
FirstSun Capital Bancorp | 27.36% | 10.54% | 30.73% | ★★★★★★ |
Gravity | NA | 15.31% | 24.42% | ★★★★★★ |
CSP | 2.17% | -5.57% | 73.73% | ★★★★★☆ |
FRMO | 0.19% | 6.49% | 15.82% | ★★★★☆☆ |
Here's a peek at a few of the choices from the screener.
AMERISAFE
Simply Wall St Value Rating: ★★★★★☆
Overview: AMERISAFE, Inc. is an insurance holding company specializing in underwriting workers' compensation insurance across the United States, with a market capitalization of approximately $906.34 million.
Operations: The company specializes in providing workers' compensation insurance, generating revenue primarily through premiums. It incurs costs mainly related to claims and policyholder benefits, as evidenced by its consistent gross profit margin around 34.19% in recent reporting periods.
AMERISAFE, a lesser-highlighted player in the insurance sector, trades at 20.4% below its estimated fair value, presenting a potentially undervalued opportunity. Despite not outperforming the industry with a 10.9% earnings growth last year compared to the industry's 42.9%, AMERISAFE maintains robust financial health as evidenced by its debt-free status and positive free cash flow. Recent earnings show slight dips with Q1 revenue at $80 million and net income at $16 million, down from the previous year but still solid given broader economic contexts.
AMERISAFE
Simply Wall St Value Rating: ★★★★★☆
Overview: AMERISAFE, Inc. is an insurance holding company specializing in underwriting workers' compensation insurance across the United States, with a market capitalization of approximately $906.34 million.
Operations: The company specializes in providing workers' compensation insurance, generating revenue primarily through premiums. It incurs costs mainly related to claims and policyholder benefits, as evidenced by its consistent gross profit margin around 34.19% in recent reporting periods.
AMERISAFE, a lesser-highlighted player in the insurance sector, trades at 20.4% below its estimated fair value, presenting a potentially undervalued opportunity. Despite not outperforming the industry with a 10.9% earnings growth last year compared to the industry's 42.9%, AMERISAFE maintains robust financial health as evidenced by its debt-free status and positive free cash flow. Recent earnings show slight dips with Q1 revenue at $80 million and net income at $16 million, down from the previous year but still solid given broader economic contexts.
First Community Bankshares
Simply Wall St Value Rating: ★★★★★★
Overview: First Community Bankshares, Inc., operating through its subsidiary First Community Bank, offers a range of banking products and services, with a market capitalization of approximately $774.52 million.
Operations: Community Banking generates a consistent revenue stream for First Community Bankshares, achieving $160.78 million as of the most recent data. The company has maintained a gross profit margin of 100% over multiple periods, indicating that it incurs no cost of goods sold.
First Community Bankshares, a lesser-known yet robust player in the banking sector, boasts a strong financial foundation with total assets of $3.2 billion and equity of $506.9 million. The bank has managed an impressive net interest margin of 4.4% and maintains a healthy loan portfolio with only 0.8% non-performing loans, reflecting prudent risk management. Recently, it continued its shareholder-friendly actions by repurchasing shares worth $2.97 million and declaring consistent dividends, marking its 39th consecutive year of payouts to shareholders.
First Community Bankshares
Simply Wall St Value Rating: ★★★★★★
Overview: First Community Bankshares, Inc., operating through its subsidiary First Community Bank, offers a range of banking products and services, with a market capitalization of approximately $774.52 million.
Operations: Community Banking generates a consistent revenue stream for First Community Bankshares, achieving $160.78 million as of the most recent data. The company has maintained a gross profit margin of 100% over multiple periods, indicating that it incurs no cost of goods sold.
First Community Bankshares, a lesser-known yet robust player in the banking sector, boasts a strong financial foundation with total assets of $3.2 billion and equity of $506.9 million. The bank has managed an impressive net interest margin of 4.4% and maintains a healthy loan portfolio with only 0.8% non-performing loans, reflecting prudent risk management. Recently, it continued its shareholder-friendly actions by repurchasing shares worth $2.97 million and declaring consistent dividends, marking its 39th consecutive year of payouts to shareholders.
Employers Holdings
Simply Wall St Value Rating: ★★★★★☆
Overview: Employers Holdings, Inc. operates in the U.S. commercial property and casualty insurance sector and has a market capitalization of approximately $1.15 billion.
Operations: The company generates its revenue primarily through insurance operations, with a notable gross profit margin of 19.50% as of the most recent data. This performance is underpinned by a consistent focus on managing costs effectively, evidenced by a cost of goods sold (COGS) totaling $698.30 million in the latest reporting period.
Employers Holdings, a lesser-known but financially robust company, has shown impressive growth with a 65.3% earnings increase over the past year, outpacing the insurance industry's 42.9%. Currently trading at 59.7% below its estimated fair value, it presents an appealing investment opportunity. The company is debt-free and has enhanced shareholder value through a $100 million share buyback plan extended to July 2025. Recent strategic moves include securing a $25 million credit facility for broader corporate agility.
Employers Holdings
Simply Wall St Value Rating: ★★★★★☆
Overview: Employers Holdings, Inc. operates in the U.S. commercial property and casualty insurance sector and has a market capitalization of approximately $1.15 billion.
Operations: The company generates its revenue primarily through insurance operations, with a notable gross profit margin of 19.50% as of the most recent data. This performance is underpinned by a consistent focus on managing costs effectively, evidenced by a cost of goods sold (COGS) totaling $698.30 million in the latest reporting period.
Employers Holdings, a lesser-known but financially robust company, has shown impressive growth with a 65.3% earnings increase over the past year, outpacing the insurance industry's 42.9%. Currently trading at 59.7% below its estimated fair value, it presents an appealing investment opportunity. The company is debt-free and has enhanced shareholder value through a $100 million share buyback plan extended to July 2025. Recent strategic moves include securing a $25 million credit facility for broader corporate agility.
Next Steps
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NasdaqGS:AMSF NasdaqGS:FCBC and NYSE:EIG.
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