Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
Help & Tutorial 
Cancel anytime
- Chart
- Upturn Summary
- Highlights
- Revenue
- Valuation
- Analyst Ratings
Upturn AI SWOT - About
AMBC 
Ambac Financial Group Inc (AMBC)
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- Pass (Skip investing)
Stock price based on last close (see disclosures)
- ALL
- YEAR
- MONTH
- WEEK
Upturn Advisory Summary
04/01/2025: AMBC (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Analysis of Past Performance
Type Stock | Historic Profit 0.03% | Avg. Invested days 56 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 404.62M USD | Price to earnings Ratio - | 1Y Target Price 17 |
Price to earnings Ratio - | 1Y Target Price 17 | ||
Volume (30-day avg) 1550539 | Beta 1.26 | 52 Weeks Range 7.92 - 18.45 | Updated Date 04/1/2025 |
52 Weeks Range 7.92 - 18.45 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.13 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -231.13% | Operating Margin (TTM) -23.71% |
Management Effectiveness
Return on Assets (TTM) -0.12% | Return on Equity (TTM) -4.49% |
Valuation
Trailing PE - | Forward PE 12.42 | Enterprise Value 507344092 | Price to Sales(TTM) 1.68 |
Enterprise Value 507344092 | Price to Sales(TTM) 1.68 | ||
Enterprise Value to Revenue 2.15 | Enterprise Value to EBITDA - | Shares Outstanding 46242200 | Shares Floating 44885899 |
Shares Outstanding 46242200 | Shares Floating 44885899 | ||
Percent Insiders 3.83 | Percent Institutions 92.33 |
Analyst Ratings
Rating 4.5 | Target Price 17 | Buy 1 | Strong Buy 1 |
Buy 1 | Strong Buy 1 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Ambac Financial Group Inc
Company Overview
History and Background
Ambac Financial Group Inc. was founded in 1971 as American Municipal Bond Assurance Corporation. It evolved into a major financial guarantee provider, later restructuring after significant losses during the 2008 financial crisis. It has since refocused its business model.
Core Business Areas
- Financial Guarantees: Ambac provides financial guarantees for public finance and structured finance obligations. These guarantees provide credit enhancement to bondholders, reducing the risk of default.
- Legacy Insurance Business: Management of legacy insurance policies and claims related to prior financial guarantees.
- Specialty Insurance: The company is transitioning to specialty insurance lines to diversify from municipal bond guarantees
Leadership and Structure
The leadership team includes Claude LeBlanc (President and CEO) and David Trick (CFO). The organizational structure is a hierarchical one common for public companies, with various departments reporting to the executive team.
Top Products and Market Share
Key Offerings
- Municipal Bond Insurance: Ambac guarantees municipal bonds, providing security to investors. Ambac is one of a few players in this market. Competitors include Assured Guaranty (AGO) and Build America Mutual (BAM). Market share data is dynamic and influenced by specific transactions.
- Structured Finance Insurance: Ambac provides insurance for structured finance transactions. Market share fluctuates depending on deals. Competitors include Assured Guaranty (AGO) and other specialized insurers.
Market Dynamics
Industry Overview
The financial guarantee industry is influenced by interest rates, credit spreads, and economic conditions. Demand for guarantees rises and falls based on perceived risk and regulatory requirements for bond issuers.
Positioning
Ambac's position is currently as a smaller player in the market after restructuring. Its competitive advantage lies in its established reputation and experience, but it faces challenges in regaining market share.
Total Addressable Market (TAM)
The TAM for financial guarantees is in the tens of billions of dollars annually, depending on the volume of municipal and structured finance issuance. Ambac is positioned to capture a portion of this TAM, aiming to expand its reach in specialty insurance.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Established brand name
- Refocused business strategy
- Significant tax assets
Weaknesses
- Legacy liabilities
- Smaller market share compared to peak
- Dependence on financial guarantee market fluctuations
- Past reputational damage
Opportunities
- Expansion into new insurance markets
- Capitalizing on infrastructure investment trends
- Increasing demand for credit enhancement
- Strategic acquisitions
Threats
- Economic downturn
- Increased competition
- Regulatory changes
- Interest rate volatility
Competitors and Market Share
Key Competitors
- AGO
Competitive Landscape
Ambac faces competition from larger, more established players like Assured Guaranty. Its advantages include its turnaround story and tax assets, while its disadvantages include legacy issues and a smaller market capitalization.
Major Acquisitions
Conduit Holdings Limited
- Year: 2023
- Acquisition Price (USD millions): 753
- Strategic Rationale: This acquisition provides Ambac with a significant presence in the specialty property and casualty insurance market. It also enhances Ambac's ability to diversify its revenue streams and reduce its dependence on the financial guarantee business. (USD 753 million in cash and Ambac common shares)
Growth Trajectory and Initiatives
Historical Growth: Ambac experienced significant contraction following the 2008 financial crisis. Recent years have focused on stabilization and strategic repositioning.
Future Projections: Future growth is projected to come from expansion into new specialty insurance lines and increased participation in the municipal bond market.
Recent Initiatives: Recent initiatives include the acquisition of various specialty insurance platforms and active management of legacy liabilities.
Summary
Ambac Financial Group is currently in a transitional phase, focusing on diversifying its business beyond financial guarantees. While it faces challenges from legacy liabilities and competition, its strategic acquisitions and tax assets provide growth opportunities. The company needs to carefully manage its risks and effectively execute its diversification strategy to achieve long-term success. Strong management and efficient capital allocation will be crucial for Ambac's future performance.
Similar Companies
- AGO
- MGIC
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q), Press releases, Analyst reports
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market conditions and company performance can change rapidly.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Ambac Financial Group Inc
Exchange NYSE | Headquaters New York, NY, United States | ||
IPO Launch date 1991-07-11 | President, CEO & Director Mr. Claude L. LeBlanc CPA | ||
Sector Financial Services | Industry Insurance - Specialty | Full time employees 380 | Website https://www.ambac.com |
Full time employees 380 | Website https://www.ambac.com | ||
Ambac Financial Group, Inc. operates as a financial services holding company. It operates in two segments, Specialty Property and Casualty Insurance; and Insurance Distribution. The Specialty Property and Casualty Insurance segment provides specialty property and casualty program insurance with a focus on commercial and personal liability risks. The Insurance Distribution segment offers specialty property and casualty insurance distribution services, which include managing general agents, underwriters, insurance broker, and other distribution and underwriting businesses. The company was founded in 1971 and is headquartered in New York, New York.
Upturn is now on iOS and Android!
Experience Upturn on your mobile. Install it now!
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.