Quantcast
Yahoo yahoo.com 06 Aug, 2022 14:45 am

AMSF) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?

AMSF) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?
With its stock down 9.0% over the past month, it is easy to disregard AMERISAFE (NASDAQ:AMSF). However, a closer look...

Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential.Earnings growth is a huge factor in stock valuation.What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price.In AMERISAFE's case, its respectable earnings growth can probably be explained by its low three-year median payout ratio of 24% (or a retention ratio of 76%), which suggests that the company is investing most of its profits to grow its business.

This of course has caused the company to see a good amount of growth in its earnings.And on comparing with the industry, we found that the the average industry ROE is similar at 11%.

organizations
Read full story at yahoo.com