Is AMSF a high-quality business?

AlphaMadera's AlphaQuality grade scores AMERISAFE, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how AMSF compares to a Buffett-style quality bar.

What is AMERISAFE, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to AMSF based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes AMSF a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

AMSF - AMERISAFE, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $32.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Banks, Insurers & Asset Managers

AlphaQuality — archetype-weighted quantitative grade

B+ 77.5 / 100 composite

Composite Grade

Composite of six pillars weighted for banks, insurers & asset managers businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 25%

B+ 77.2

Scored using loss ratio — insurer-archetype substitution.

Loss Ratio 60.0% 65/100
Loss Ratio Trend -10.15 pp/yr 100/100

Capital Efficiency

Weight: 15%

A- 82.7

5yr Avg ROE 19.1% 90/100
5yr Share-Count CAGR -0.3% 69/100

Growth Quality

Weight: 10%

C- 49.3

Scored using premium growth cross-checked against loss-ratio trend — insurer-archetype substitution.

5yr Premium CAGR -2.7% 15/100
Loss Ratio Trend (growth quality check) -10.15 pp/yr 100/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

B 69.8

Scored using reserve development and loss-ratio stability — insurer-archetype substitution.

Reserve Development 12.0% 100/100
Loss Ratio Stability (σ) 0.57 25/100

Balance Sheet

Weight: 25%

A+ 95.5

Scored using premiums-to-surplus — insurer-archetype substitution.

Premiums / Surplus 1.13x 93/100
Interest Coverage (EBIT/Int) 30.00x 100/100

Stability

Weight: 10%

B- 64.9

EPS Volatility (σ/μ) 0.23 67/100
Negative-Revenue Years (5) 2/5 60/100
Piotroski F-Score 6 67/100

2 of 2 gurus held; 1 added; 1 trimmed.

Holders: 2
Avg Δ position: -27.0%
New buys: 0
Full exits: 0

Cooperman decreased -59%
Wood increased +5%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — Loss Ratio, Loss Ratio Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Premium CAGR, Loss Ratio Trend (growth quality check), Revenue-Growth Years (5)
Cash Generation (15%) — Reserve Development, Loss Ratio Stability (σ)
Balance Sheet (25%) — Premiums / Surplus, Interest Coverage (EBIT/Int)
Stability (10%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.