AMERISAFE, Inc. (AMSF) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

AMERISAFE, Inc. (AMSF) Financial Services Profile

AMERISAFE, Inc. specializes in workers' compensation insurance for high-hazard industries, differentiating itself through tailored risk management and loss control programs. With a focus on underserved markets, the company maintains a strong presence in sectors like construction, trucking, and manufacturing, demonstrating consistent profitability and a high dividend yield.

What Is the Investment Thesis for AMSF?

AMERISAFE, Inc. presents a compelling investment case due to its specialization in the high-hazard workers' compensation market, which allows for pricing discipline and focused risk management. The company's consistent profitability, demonstrated by a 14.3% profit margin, and a substantial 8.50% dividend yield, offer attractive returns for investors. Growth catalysts include expansion into new geographic markets and further penetration of existing high-hazard industries. The company's strong free cash flow of $0.04 billion provides financial flexibility for strategic initiatives and shareholder returns. However, potential risks include regulatory changes and economic downturns that could impact premium volumes and investment income. The company's beta of 0.37 indicates lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

AMSF Key Highlights

AMERISAFE's profit margin stands at 14.3%, reflecting efficient underwriting and claims management.

• The company offers a high dividend yield of 8.50%, providing a significant income stream for investors.
• AMERISAFE's free cash flow is $0.04 billion, indicating strong financial health and flexibility.
• The company's gross margin is 47.6%, showcasing its ability to maintain profitability in a competitive market.
• With a beta of 0.37, AMERISAFE exhibits lower volatility compared to the overall market, making it a potentially stable investment.

Who Are AMSF's Competitors?

AMSF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are AMSF's Key Strengths?

Specialization in high-hazard industries.

• Strong underwriting discipline.
• High dividend yield.
• Experienced management team.

What Are AMSF's Weaknesses?

Concentration in specific industries makes it vulnerable to sector-specific downturns.

• Smaller size compared to larger national carriers.
• Geographic concentration in certain regions.
• Reliance on independent agents for distribution.

What Could Drive AMSF Stock Higher?

Potential regulatory changes in key states could impact premium rates and market access.

• Expansion into new geographic markets is expected to drive revenue growth.
• Continued focus on risk management and loss control to improve underwriting profitability.
• Investment in technology to enhance efficiency and customer service.

What Are the Key Risks for AMSF?

Financial-distress signal — its Altman Z-Score of 0.28 sits in the distress zone (elevated bankruptcy risk).

• Economic downturns could reduce employment and premium volume.
• Rising healthcare costs could increase claims expenses.
• Increased competition from larger national carriers could put pressure on pricing.
• Regulatory changes impacting workers' compensation insurance.
• Catastrophic events could lead to significant claims losses.

What Are the Growth Opportunities for AMSF?

• Expansion into new geographic markets represents a significant growth opportunity for AMERISAFE. By targeting states with growing industrial sectors and underserved high-hazard industries, the company can increase its premium volume and market share. For example, states in the Southeast and Southwest regions experiencing rapid construction growth present attractive expansion targets. This expansion strategy requires careful assessment of local regulatory environments and competitive landscapes, but offers the potential to significantly boost AMERISAFE's revenue and profitability. The timeline for this expansion is estimated at 2-3 years, with a potential market size of $500 million in new premiums.
• Further penetration of existing high-hazard industries offers another avenue for growth. AMERISAFE can deepen its relationships with existing clients and attract new customers by offering enhanced risk management services and tailored insurance solutions. This includes developing specialized programs for specific sub-sectors within construction, trucking, and manufacturing. By becoming a trusted partner in safety and risk mitigation, AMERISAFE can increase customer retention and premium volume. The market size for this opportunity is estimated at $300 million in additional premiums over the next 3 years, driven by increased awareness of workplace safety and regulatory compliance.
• Leveraging technology to improve underwriting and claims management can drive efficiency and profitability. By investing in data analytics and automation, AMERISAFE can enhance its risk assessment capabilities, reduce claims processing costs, and improve customer service. This includes implementing AI-powered tools for fraud detection and predictive modeling to identify high-risk claims. The potential cost savings from these technological improvements are estimated at $5 million per year, with a timeline of 1-2 years for implementation. This will also allow for more competitive pricing and better risk selection.
• Developing specialized insurance products for emerging high-hazard industries can create new revenue streams. As new technologies and industries emerge, AMERISAFE can develop tailored insurance solutions to address the unique risks associated with these sectors. For example, the growing renewable energy industry, including solar and wind power, presents new opportunities for workers' compensation insurance. By being an early mover in these emerging markets, AMERISAFE can establish a competitive advantage and capture significant market share. The market size for this opportunity is estimated at $200 million in premiums over the next 5 years.
• Strategic acquisitions of smaller, specialized insurance providers can accelerate growth and expand AMERISAFE's market presence. By acquiring companies with complementary expertise and geographic reach, AMERISAFE can quickly expand its product offerings and customer base. This includes targeting companies with strong relationships in specific high-hazard industries or regions. Strategic acquisitions can also provide access to new technologies and talent. The timeline for this opportunity is ongoing, with a potential market size of $100 million in acquired premiums over the next 3 years. This strategy would require careful due diligence and integration to ensure a successful outcome.

What Are AMSF's Competitive Advantages?

• Specialization in high-hazard industries creates a barrier to entry for generalist insurance providers.
• Deep expertise in risk assessment and loss control for specific industries.
• Strong relationships with clients built on tailored safety programs and claims management.
• Established reputation for providing reliable and responsive service.
• Proprietary data and analytics for underwriting and claims management.

What Does AMSF Do?

AMERISAFE, Inc., incorporated in 1985 and based in DeRidder, Louisiana, operates as an insurance holding company underwriting workers' compensation insurance in the United States. The company targets small to mid-sized employers in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. AMERISAFE's policies provide benefits to injured employees, covering temporary or permanent disability, death, and medical and hospital expenses. AMERISAFE has carved a niche by focusing on industries often overlooked by larger insurance carriers. This specialization allows them to develop deep expertise in risk assessment and loss control specific to these sectors. The company's business model emphasizes close relationships with its clients, providing tailored safety programs and claims management services. This hands-on approach aims to reduce workplace accidents and control costs, benefiting both AMERISAFE and its policyholders. AMERISAFE's geographic reach spans across the United States, with a strategic focus on states with significant industrial activity and underserved markets. The company's commitment to specialized underwriting and proactive risk management has enabled it to maintain a strong financial performance and a leading position in the specialty workers' compensation market.

What Products and Services Does AMSF Offer?

• Underwrites workers' compensation insurance policies.
• Provides benefits to injured employees for temporary or permanent disability.
• Covers medical and hospital expenses related to workplace injuries.
• Serves small to mid-sized employers in hazardous industries.
• Offers tailored risk management and loss control programs.
• Focuses on industries like construction, trucking, and manufacturing.
• Provides death benefits to families of employees who die from work-related incidents.

How Does AMSF Make Money?

• Generates revenue primarily through premiums collected from workers' compensation insurance policies.
• Manages risk through underwriting and loss control programs to minimize claims.
• Invests premium income to generate additional revenue.
• Focuses on maintaining a balance between premium income, claims expenses, and operating costs to achieve profitability.

What Industry Does AMSF Operate In?

AMERISAFE operates within the specialty insurance sector, specifically focusing on workers' compensation for high-hazard industries. This niche market is characterized by higher premiums due to the increased risk, but also requires specialized expertise in risk management and loss control. The competitive landscape includes both large national carriers and smaller regional players. AMERISAFE differentiates itself through its deep understanding of specific high-hazard industries and its commitment to providing tailored safety programs. The workers' compensation insurance market is influenced by factors such as employment rates, regulatory changes, and healthcare costs. As of 2026, the industry is experiencing moderate growth, driven by increasing demand from sectors like construction and manufacturing.

Who Are AMSF's Key Customers?

• Small to mid-sized employers in construction.
• Trucking companies.
• Logging and lumber businesses.
• Manufacturing firms.
• Telecommunications companies.
• Agricultural businesses.
• Maritime companies.

AMERISAFE, Inc. (AMSF) Valuation Context

Valued at $490M, AMSF is classified as a small-cap stock. Relative to its peer group, AMSF's quantitative score of 44/100 is below the peer average of 75/100.

AMSF Revenue & Earnings Trend

In Q2 2026, AMSF generated $92.0M in top-line revenue, marking a sequential increase of 14.8%. The company recorded net income of $14.6M, with diluted EPS of $0.78. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Financial Services. Across the four most recent quarters, AMSF averaged $0.62 in diluted EPS.

Company Profile

AMERISAFE, Inc. operates in the Insurance - Specialty industry within the Financial Services sector. It is headquartered in Deridder, US. The company is led by CEO Gerry Janelle Frost. AMSF has traded publicly since 2005.

Return on equity for AMERISAFE, Inc. stands at 17.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.1%, showing how much profit it generates from its asset base. AMSF trades at a trailing price-to-earnings ratio of 15.81, below the Financial Services sector average of ~18x. Its free cash flow yield is 1.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.54 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 8.1%, the inverse of the P/E and a quick read on earnings relative to price.

AMERISAFE, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.28 places it in the distress zone, a signal of elevated financial risk.

Wall Street analysts project AMERISAFE, Inc. revenue of about $333.1M for fiscal 2026, with EPS near $1.98.

AMSF Financials

AMSF Latest News

AMSF Analyst Consensus

AMSF MoonshotScore

What Investors Ask About AMERISAFE, Inc. (AMSF) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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