Ambac Financial Group, Inc.

Ambac Financial Group, Inc.

AMBC·NYSE

$8.29

+0.0000%
Financial ServicesInsurance - Specialty

Ambac Financial Group, Inc., a financial services holding company, provides financial guarantees in the United States, the United Kingdom, Italy, Austria, Australia, France, and Internationally. It offers financial guarantee insurance policies; specialty property & casualty program insurance; credit derivative contracts; and interest rate derivative transactions, as well as managing general agency / underwriting services. The company was incorporated in 1991 and is headquartered in New York, New York.

At a Glance

Live Snapshot
Market Cap$397.37M
EPS-10.7100
P/E Ratio-0.77
Earnings Date02/24/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal · Driver · Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -0.8).

Valuation inputs: P/E -0.8, earnings yield N/A, momentum 0.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -64.9%, ROIC -0.7%).

Profitability stack: net margin -2.4%, ROE -64.9%, ROIC -0.7%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +85.2%, momentum 0.0%, net margin -2.4%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

ambc

Ambac Financial Group, Inc. Market vs Earnings Trajectory

AMBC · NYSE

Loading price and EPS data...

Ambac Financial Group, Inc.

Ambac Financial Group, Inc. Fair Value Envelope

AMBC · NYSE

Our analysis suggests that AMBC has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $8.29, this represents a potential HIDDEN relative to our calculated worth for Ambac Financial Group, Inc..

Intrinsic Value
Current Price: $8.29
3Y+1685.0%
5Y+129.0%
10Y-198.0%
3Y-5.0%
5Y-53.0%
10Y-63.0%
3Y+3173.0%
5Y+159.0%
10Y-213.0%
3Y-101.0%
5Y-100.0%
10Y-99.0%
3Y-101.0%
5Y-100.0%
10Y-99.0%
3Y-35.0%
5Y-40.0%
10Y-66.0%
Ambac Financial Group, Inc.

Ambac Financial Group, Inc. Profit Bridge

AMBC · NYSE
Revenue235.81M
Cost of Goods Sold (137.17M)
Gross Profit98.65M
Operating Expenses (158.49M)
Operating Income-59.84M
Interest Expense (9.38M)
Other Income/Expense0.00
Pretax Income-59.84M
Income Tax (-924.00K)
Net Income-556.45M
Net Income
-556.45M

Profitability Analysis

Gross Margin

41.8%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

-25.4%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-236.0%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

41.83%
Gross Profit Margin
9%
3Y-68.0%
5Y-58.0%
10Y-58.0%
-25.38%
Operating Profit Margin
31%
3Y+6168.0%
5Y-65.0%
10Y-126.0%
-235.97%
Net Profit Margin
-8204%
3Y+3328.0%
5Y+445.0%
10Y-408.0%
-64.94%
Return on Equity
-24448%
3Y+3865.0%
5Y+346.0%
10Y-322.0%
-6.91%
Return on Assets
-16121%
3Y+4897.0%
5Y+328.0%
10Y-432.0%
-0.74%
Return on Invested Capital
3Y-1092.0%
5Y-78.0%
10Y-1883.0%
AMBC

Ambac Financial Group, Inc. Cash Conversion Engine

AMBC · NYSE
Net Income-58.92M
Depreciation & Amortization19.95M
Stock-Based Compensation9.36M
Change in Working Capital15.02M
Others15.36M
Capital Expenditures0.00
Free Cash Flow762.00K

Cash Flow Quality Analysis

FCF Conversion Rate

-1.3%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

FCF Growth Trend

-99.6%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

+$15.02M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.

ambc

Ambac Financial Group, Inc. Funding & Solvency Profile

AMBC · NYSE
Cash & Cash Equivalents51.77M
Net Receivables590.70M
Inventory0.00
Other Current Assets-1.23B
Total Current Assets0
Property, Plant & Equipment0.00
Goodwill & Intangible Assets784.58M
Long-Term Investments426.93M
Other Non-Current Assets-1.21B
Total Non-Current Assets-784579000
Total Assets
2.15B

Financial Health Analysis

Debt-to-Equity Ratio

0.87x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

0

Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.

Asset Composition

0% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

ambc

Ambac Financial Group, Inc. Street Expectations Map

AMBC · NYSE

Wall Street analysts project that AMBC stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 10.00, with estimates ranging from a low of 10.00 to a high of 10.00.

Lowest Target
10.00
20.63%
Consensus Target
10.00
20.63%
Highest Target
10.00
20.63%

The consensus 1-year price target stands at 10.00, with estimates ranging from a low of 10.00 to a high of 10.00.

Analyst Consensus Analysis

Upside Potential

+20.6%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

ambc

Ambac Financial Group, Inc. Insider Positioning

AMBC · NYSE

During the last 12 months, insiders have purchased $389K worth of AMBC shares, with no selling activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

25.0K

213.70K

Sold

0

0.00

Net Activity

+214K

+$214K

9-12 Months

Bought

25.0K

175.75K

Sold

0

0.00

Net Activity

+176K

+$176K

Top Buyers

1
LC

Leblanc Claude

Director, Officer: Chief Executive Officer

50.0K shares2 transactions

$389K

2
SRS

Smith R Sharon

Officer: Exec Vp & Group Coo

20 shares1 transactions

$205

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Bullish

Strong bullish signal with $389K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.

Buy/Sell Ratio

∞:1

Perfect buy/sell ratio. Only buying activity with zero selling—the most bullish possible insider signal.

Insider Participation

High Buying

2 insider buyers vs. 0 sellers. Broad-based buying across management team suggests widespread confidence.

Insider Activity Insight

Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.

No Dividend Yield Data

AMBC has not reported any dividend yield values in the available annual periods.

 

ambc Dividend History

AMBC
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%