Investment Thesis
Ameris Bancorp demonstrates strong revenue growth (+48.8% YoY) and exceptional free cash flow generation ($249.4M, 70.9% margin), but fundamental profitability metrics are dangerously weak. ROE of 2.7% and ROA of 0.4% represent severe underperformance for a financial institution, while the interest coverage ratio of 1.1x indicates the company is barely servicing its debt obligations.
Strengths
- Exceptional revenue growth of 48.8% year-over-year
- Strong free cash flow generation with $249.4M and 70.9% FCF margin
- Minimal long-term debt exposure at only $5.2M
- High operating margin of 40% and net margin of 31.4%
Risks
- ROE of 2.7% is critically low for a bank—effectively zero economic profit
- ROA of 0.4% indicates severe asset inefficiency relative to industry norms
- Interest coverage ratio of 1.1x suggests financial stress and debt servicing vulnerability
- Divergence between revenue growth (48.8%) and net income growth (14.9%) indicates margin compression
- 31 Form 4 insider filings in 90 days suggests elevated insider trading activity
Key Metrics to Watch
- Return on Equity—must improve above 8% for sustainable banking operations
- Interest coverage ratio—critical that it exceeds 2.5x for safety
- Net interest margin trend—monitor for continued compression in profitability
Financial Metrics
Revenue
351.8M
Net Income
110.5M
EPS (Diluted)
$1.63
Free Cash Flow
249.4M
Total Assets
28.1B
Cash
1.3B
Profitability Ratios
Gross Margin
N/A
Operating Margin
40.0%
Net Margin
31.4%
ROE
2.7%
ROA
0.4%
FCF Margin
70.9%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
85.5%
Interest Coverage
1.10x
Long-term Debt
5.2M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T06:38:56.539952 |
Data as of: 2026-03-31 |
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