Atlantic AmericanAAME +1.19%63 Interest Coverage is 1.99 as of Sep. 2025, which is 39% below its 10-year median of 3.26. GuruFocus rates AAME with a GF Score™ of 63/100 and a GF Value™ of $2.04 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 351 Insurance companies, Atlantic American ranks worse than 86.89% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. Atlantic American's
EBIT
for the
three
months ended in Sep. 2025 was $1.5 Mil. Atlantic American's Interest Expense for the
three
months ended in Sep. 2025 was $-0.8 Mil.
Atlantic American's interest coverage for the quarter that ended in Sep. 2025 was 1.99.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Atlantic American's Interest Coverage or its related term are showing as below:
AAME'
s Interest Coverage Range Over the Past 10 Years
Min: 0.52 Med: 3.26 Max: 10.63
Current: 3.08
AAME's Interest Coverage is ranked worse than 86.89% of 351
companies
in the Insurance industry
Industry Median: 16.23
vs AAME: 3.08
Atlantic American (NAS:AAME) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Atlantic American Interest Coverage Related Terms
Atlantic American Interest Coverage Historical Data
* Premium members only.
The historical data trend for Atlantic American's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
AAME vs UTGN, AFL, MET: Interest Coverage Comparison
For the Insurance - Life subindustry, Atlantic American's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Atlantic American Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Atlantic American's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Atlantic American's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Atlantic American (AAME) has a Interest Coverage of 1.99 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Atlantic American and its competitors. This is 39% below median its historical median of 3.26. Over the past decade, Atlantic American's Interest Coverage has ranged from 0.52 to 10.63. According to the industry distribution chart, Atlantic American ranks #305 out of 351 companies in the Insurance industry, placing it in the top 86.9%.
Is Atlantic American's Interest Coverage too high?
Atlantic American's current Interest Coverage of 1.99 is 39% below median its 10-year median of 3.26. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 10.63. The Insurance industry median Interest Coverage is 16.23. Atlantic American's value of 1.99 is 87.7% below this industry median. Based on the distribution chart, Atlantic American ranks #305 out of 351 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Atlantic American has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Atlantic American's Interest Coverage compare to UTGN and AFL?
According to the Insurance industry distribution chart, Atlantic American ranks #305 out of 351 companies for Interest Coverage. This places Atlantic American in the lower half of its industry. The industry median Interest Coverage is 16.23. Atlantic American's value of 1.99 is 87.7% below this benchmark. Historically, Atlantic American's own Interest Coverage has ranged from 0.52 to 10.63 over the past decade. While the company's 10-year median is 3.26 vs. the industry median of 16.23, Atlantic American has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Atlantic American's current Interest Coverage of 1.99 is 87.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Atlantic American and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Atlantic American's current Interest Coverage is 1.99, which is 39% below median its own 10-year median of 3.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Atlantic American stock overvalued right now?
Based on GuruFocus' analysis, Atlantic American (AAME) is currently considered Modestly Undervalued. The stock's GF Value™ is $2.04, compared to a current price of $1.70 — trading 16.7% below its estimated fair value. The current Interest Coverage is 1.99, which is 39% below median its 10-year median of 3.26 and 87.7% below the Insurance industry median of 16.23. Atlantic American's overall GF Score™ is 63/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Atlantic American (AAME), the current Interest Coverage is 1.99 as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Atlantic American (AAME) Overvalued in 2026?
Based on GuruFocus' analysis, Atlantic American stock appears to be undervalued.
The current stock price of $1.70 is trading 16.7% below its estimated GF Value™ of $2.04.
GuruFocus considers Atlantic American to be Modestly Undervalued.
Key valuation signals for AAME:
Interest Coverage: 1.99 (39% below median its 10-year median of 3.26)
GF Value™: $2.04 vs. price of $1.70 (16.7% below fair value)
Industry Position: 87.7% below the Insurance median (#305 of 351)
No single metric tells the full story. See the AAME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Atlantic American Corp operates in specialty markets within the life and health and property and casualty insurance industries. The company has two segments: American Southern, It provides property and casualty insurance including bodily injury and property damage liability coverage, uninsured motorist coverage, and physical damage coverage for commercial accounts, and Bankers Fidelity, the company's life and health operations offer a variety of life and supplemental health products including ordinary and term life insurance, Medicare supplement, and other health insurance.
63GF Score
Get the complete analysis for AAME
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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