Atlantic AmericanAAME +1.19%63 Pretax Margin % is 1.43% as of Sep. 2025, which is 12% below its 10-year median of 1.62. 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 506 Insurance companies, Atlantic American ranks worse than 83% on this metric.
The historical rank and industry rank for Atlantic American's Pretax Margin % or its related term are showing as below:
AAME'
s Pretax Margin % Range Over the Past 10 Years
Min: -2.8 Med: 1.62 Max: 7.94
Current: 3.15
AAME's Pretax Margin % is ranked worse than 83% of 506
companies
in the Insurance industry
Industry Median: 12.02
vs AAME: 3.15
Atlantic American (NAS:AAME) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Atlantic American Pretax Margin % Related Terms
Atlantic American Pretax Margin % Historical Data
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The historical data trend for Atlantic American's Pretax Margin % 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.
AAME vs UTGN, AFL, MET: Pretax Margin % Comparison
For the Insurance - Life subindustry, Atlantic American's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Atlantic American's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Atlantic American's Pretax Margin % falls into.
* 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 Pretax Margin % of 1.43% as of Sep. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Atlantic American and its competitors. This is 12% below median its historical median of 1.62. According to the industry distribution chart, Atlantic American ranks #420 out of 506 companies in the Insurance industry, placing it in the top 83%.
Is Atlantic American's Pretax Margin % too high?
Atlantic American's current Pretax Margin % of 1.43% is 12% below median its 10-year median of 1.62. The Insurance industry median Pretax Margin % is 12.02. Atlantic American's value of 1.43% is 88.1% below this industry median. Based on the distribution chart, Atlantic American ranks #420 out of 506 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 Pretax Margin % compare to UTGN and AFL?
According to the Insurance industry distribution chart, Atlantic American ranks #420 out of 506 companies for Pretax Margin %. This places Atlantic American in the lower half of its industry. The industry median Pretax Margin % is 12.02. Atlantic American's value of 1.43% is 88.1% below this benchmark. While the company's 10-year median is 1.62 vs. the industry median of 12.02, 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 Pretax Margin % for an Insurance company?
The median Pretax Margin % among Insurance companies is 12.02, based on 506 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Atlantic American's current Pretax Margin % of 1.43% is 88.1% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Atlantic American and its competitors. For the Insurance industry, the median Pretax Margin % is 12.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Atlantic American's current Pretax Margin % is 1.43%, which is 12% below median its own 10-year median of 1.62. 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 Pretax Margin % is 1.43%, which is 12% below median its 10-year median of 1.62 and 88.1% below the Insurance industry median of 12.02. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Atlantic American (AAME), the current Pretax Margin % is 1.43% 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:
Pretax Margin %: 1.43% (12% below median its 10-year median of 1.62)
GF Value™: $2.04 vs. price of $1.70 (16.7% below fair value)
Industry Position: 88.1% below the Insurance median (#420 of 506)
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
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