Is Ambac Financial Stock a Good Investment?
Ambac Financial Investment Advice | AMBC |
- Examine Ambac Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Ambac Financial's leadership team and their track record. Good management can help Ambac Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Property & Casualty Insurance space and any emerging trends that could impact Ambac Financial's business and its evolving consumer preferences.
- Compare Ambac Financial's performance and market position to its competitors. Analyze how Ambac Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Ambac Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Ambac Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ambac Financial Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ambac Financial Group is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Insignificant | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Ambac Financial Stock
Researching Ambac Financial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 87.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.4. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ambac Financial Group has Price/Earnings To Growth (PEG) ratio of 0.9. The entity recorded a loss per share of 0.47. The firm had not issued any dividends in recent years.
To determine if Ambac Financial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ambac Financial's research are outlined below:
| Ambac Financial Group currently holds 3.5 B in liabilities with Debt to Equity (D/E) ratio of 8.17, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Ambac Financial Group has a current ratio of 0.74, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Ambac Financial's use of debt, we should always consider it together with its cash and equity. | |
| Over 87.0% of Ambac Financial shares are held by institutions such as insurance companies | |
| Latest headline from simplywall.st: Ambac Financial Group Third Quarter 2024 Earnings US0.63 loss per share |
Ambac Financial Quarterly Liabilities And Stockholders Equity |
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Ambac Financial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ambac Financial Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ambac Financial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Ambac Financial's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Ambac Financial's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-08-05 | 2024-06-30 | 0.15 | 0.18 | 0.03 | 20 | ||
2019-05-09 | 2019-03-31 | -0.16 | -0.2 | -0.04 | 25 | ||
1996-04-25 | 1996-03-31 | 0.38 | 0.42 | 0.04 | 10 | ||
1995-04-26 | 1995-03-31 | 0.36 | 0.32 | -0.04 | 11 | ||
1995-01-25 | 1994-12-31 | 0.36 | 0.32 | -0.04 | 11 | ||
1994-10-26 | 1994-09-30 | 0.36 | 0.32 | -0.04 | 11 | ||
1993-10-27 | 1993-09-30 | 0.33 | 0.29 | -0.04 | 12 | ||
1996-08-01 | 1996-06-30 | 0.41 | 0.47 | 0.06 | 14 |
Know Ambac Financial's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Ambac Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ambac Financial Group backward and forwards among themselves. Ambac Financial's institutional investor refers to the entity that pools money to purchase Ambac Financial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Susquehanna International Group, Llp | 2024-06-30 | 631.1 K | Hotchkis & Wiley Capital Management Llc | 2024-06-30 | 621.4 K | Arrowstreet Capital Limited Partnership | 2024-06-30 | 611.4 K | Bracebridge Capital, Llc | 2024-06-30 | 579.2 K | Charles Schwab Investment Management Inc | 2024-09-30 | 553.4 K | Gendell Jeffrey L | 2024-06-30 | 479.3 K | Northern Trust Corp | 2024-09-30 | 473.1 K | Goldman Sachs Group Inc | 2024-06-30 | 471.6 K | D. E. Shaw & Co Lp | 2024-06-30 | 438.1 K | Blackrock Inc | 2024-06-30 | 7.5 M | Vanguard Group Inc | 2024-09-30 | 4.1 M |
Ambac Financial's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 587.35 M.Market Cap |
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Ambac Financial's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Capital Employed | 0.02 | 0.02 |
Determining Ambac Financial's profitability involves analyzing its financial statements and using various financial metrics to determine if Ambac Financial is a good buy. For example, gross profit margin measures Ambac Financial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ambac Financial's profitability and make more informed investment decisions.
Please note, the presentation of Ambac Financial's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ambac Financial's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Ambac Financial's management manipulating its earnings.
Evaluate Ambac Financial's management efficiency
As of November 22, 2024, Return On Tangible Assets is expected to decline to 0.0005. In addition to that, Return On Capital Employed is expected to decline to 0.02. At present, Ambac Financial's Other Current Assets are projected to increase significantly based on the last few years of reporting. The current year's Intangible Assets is expected to grow to about 544.9 M, whereas Total Assets are forecasted to decline to about 7.6 B. Ambac Financial's management efficiency ratios could be used to measure how well Ambac Financial manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 31.38 | 17.96 | |
| Tangible Book Value Per Share | 22.88 | 17.41 | |
| Enterprise Value Over EBITDA | 39.24 | 41.21 | |
| Price Book Value Ratio | 0.55 | 0.58 | |
| Enterprise Value Multiple | 39.24 | 41.21 | |
| Price Fair Value | 0.55 | 0.58 | |
| Enterprise Value | 4.2 B | 4 B |
Ambac Financial's management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Beta 1.226 |
Basic technical analysis of Ambac Stock
As of the 22nd of November, Ambac Financial shows the mean deviation of 1.35, and Risk Adjusted Performance of 0.0646. Ambac Financial Group technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Ambac Financial's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ambac Financial insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ambac Financial's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ambac Financial insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Ambac Financial's Outstanding Corporate Bonds
Ambac Financial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ambac Financial Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ambac bonds can be classified according to their maturity, which is the date when Ambac Financial Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Ambac Financial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Ambac Financial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0646 | |||
| Market Risk Adjusted Performance | 0.1562 | |||
| Mean Deviation | 1.35 | |||
| Semi Deviation | 1.9 | |||
| Downside Deviation | 2.13 | |||
| Coefficient Of Variation | 1297.51 | |||
| Standard Deviation | 2.16 | |||
| Variance | 4.66 | |||
| Information Ratio | 0.0329 | |||
| Jensen Alpha | 0.065 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0334 | |||
| Treynor Ratio | 0.1462 | |||
| Maximum Drawdown | 16.3 | |||
| Value At Risk | (2.90) | |||
| Potential Upside | 3.27 | |||
| Downside Variance | 4.52 | |||
| Semi Variance | 3.6 | |||
| Expected Short fall | (1.40) | |||
| Skewness | 1.11 | |||
| Kurtosis | 7.24 |
| Risk Adjusted Performance | 0.0646 | |||
| Market Risk Adjusted Performance | 0.1562 | |||
| Mean Deviation | 1.35 | |||
| Semi Deviation | 1.9 | |||
| Downside Deviation | 2.13 | |||
| Coefficient Of Variation | 1297.51 | |||
| Standard Deviation | 2.16 | |||
| Variance | 4.66 | |||
| Information Ratio | 0.0329 | |||
| Jensen Alpha | 0.065 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0334 | |||
| Treynor Ratio | 0.1462 | |||
| Maximum Drawdown | 16.3 | |||
| Value At Risk | (2.90) | |||
| Potential Upside | 3.27 | |||
| Downside Variance | 4.52 | |||
| Semi Variance | 3.6 | |||
| Expected Short fall | (1.40) | |||
| Skewness | 1.11 | |||
| Kurtosis | 7.24 |
Consider Ambac Financial's intraday indicators
Ambac Financial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ambac Financial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 12018.25 | |||
| Daily Balance Of Power | (0.19) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 12.43 | |||
| Day Typical Price | 12.39 | |||
| Price Action Indicator | (0.15) | |||
| Period Momentum Indicator | (0.07) | |||
| Relative Strength Index | 59.13 |
Ambac Financial Corporate Filings
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 16th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 11th of October 2024 Other Reports | ViewVerify | |
F4 | 1st of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Ambac Stock media impact
Far too much social signal, news, headlines, and media speculation about Ambac Financial that are available to investors today. That information is available publicly through Ambac media outlets and privately through word of mouth or via Ambac internal channels. However, regardless of the origin, that massive amount of Ambac data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Ambac Financial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ambac Financial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ambac Financial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ambac Financial alpha.
Ambac Financial Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Ambac Financial can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Ambac Financial Corporate Directors
| Joan LammTennant | Independent Director | Profile | |
| David Herzog | Independent Director | Profile | |
| Robert Eisman | Chief Accounting Officer, Sr. Managing Director and Controller | Profile | |
| David Barranco | Senior Managing Director | Profile |
Already Invested in Ambac Financial Group?
The danger of trading Ambac Financial Group is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Ambac Financial is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Ambac Financial. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Ambac Financial Group is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Ambac Financial Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ambac Financial's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ambac Financial Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ambac Financial Group Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ambac Financial Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ambac Financial. If investors know Ambac will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ambac Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.81) | Earnings Share (0.47) | Revenue Per Share 8.59 | Quarterly Revenue Growth 0.681 | Return On Assets 0.0041 |
The market value of Ambac Financial Group is measured differently than its book value, which is the value of Ambac that is recorded on the company's balance sheet. Investors also form their own opinion of Ambac Financial's value that differs from its market value or its book value, called intrinsic value, which is Ambac Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ambac Financial's market value can be influenced by many factors that don't directly affect Ambac Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Ambac Financial's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Ambac Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ambac Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.