Allstate (ALL) AI Stock Analysis

• Market Cap: $51.55B
• Dividend Yield: 2.07%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.46
• Revenue Growth: 11.49%
• EPS Growth: 219.86%
• Country: US
• Employees: 55,000
• Sector: Financial
• Sector Strength: 80
• Industry: Insurance - Property & Casualty
• EPS (TTM): 3.53
• Shares Outstanding: 264,817,500
• 10 Day Avg. Volume: 1,582,633
• 30 Day Avg. Volume: 1,637,638
• PEG Ratio: -0.93
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.77
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 3.98
• Enterprise Value/Ebitda: 2.51
• 1Y Price Target: $234.15
• Price Target Upside: 21.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: $218.00 ▲(12.76%Upside)

Allstate's overall stock score reflects strong financial performance and positive earnings call highlights, including revenue growth and strategic initiatives. However, technical indicators suggest potential weakness, and valuation metrics indicate the stock is fairly valued. The company's ability to navigate external challenges and maintain profitability will be key to future performance.

Positive Factors

Earnings Performance

Allstate’s first-quarter operating EPS beat consensus, driven by core loss ratio outperformance across both the auto and homeowners book.

Growth Opportunities

Allstate has ample opportunities for growth across product lines, which is expected to drive high-single-digit growth in the top line.

Technology Integration

The company continues to prioritize technology integration across business functions, providing long-term benefits for growth and profitability.

Negative Factors

Advertising and Underwriting

Durability of the combined ratio will be important as many carriers will likely ramp up advertising and distribution expenses, while loosening up underwriting standards.

Competitive Environment

The evolution of the competitive environment will be critical as more carriers are ready to compete for market share, with the broader auto insurance market seen as largely a zero sum game.

PIF Miss

Allstate's 30bps April PIF miss vs. the estimate drives the 2025 growth estimate lower, to +2.6% (from +2.9%).

Allstate Business Overview & Revenue Model

Company Description

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. The company operates through Allstate Protection; Protection Services; Allstate Health and Benefits; and Run-off Property-Liability segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance; other personal lines products, such as renter, condominium, landlord, boat, umbrella, and manufactured home and stand-alone scheduled personal property; and commercial lines products under the Allstate and Encompass brand names. The Protection Services segment provides consumer product protection plans and related technical support for mobile phones, consumer electronics, furniture, and appliances; finance and insurance products, including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel, and paint and fabric protection; roadside assistance; device and mobile data collection services; data and analytic solutions using automotive telematics information; and identity protection services. This segment offers its products under various brands including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside Services, Arity, and Allstate Identity Protection. The Allstate Health and Benefits provides life, accident, critical illness, short-term disability, and other health insurance products. The Run-off Property-Liability offers property and casualty insurance. It sells its products through call centers, agencies, financial specialists, independent agents, brokers, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is based in Northbrook, Illinois.

How the Company Makes Money

Allstate makes money primarily through the underwriting of insurance policies and investment income. The company's key revenue streams are derived from premiums paid by policyholders for auto, home, and life insurance products. Allstate also earns revenue from policy fees and other charges related to its insurance products. In addition to the underwriting income, Allstate invests the premiums it collects in a portfolio of stocks, bonds, and other securities, generating investment income. The company's earnings are influenced by factors such as claims experience, changes in premium rates, regulatory environment, competition, and the overall economic conditions. Strategic partnerships with agents and affiliates also play a significant role in expanding Allstate's market reach and customer base.

Allstate Financial Statement Overview

Summary

Allstate's financial performance demonstrates solid revenue growth and effective cash flow management, positioning the company well within the insurance industry. While profitability margins have faced some pressure, the company maintains a stable balance sheet with manageable leverage. Continued focus on improving profitability will be crucial for sustaining long-term growth.

Income Statement

The company shows a solid revenue growth trend, evidenced by a 20.89% increase from 2023 to 2024 and a 1.87% rise into the TTM. Gross Profit Margin is strong at nearly 100%, indicating effective cost management. However, the decline in EBIT Margin from 9.71% in 2022 to 8.05% in the TTM reflects potential profitability pressure. Net Profit Margin also decreased, suggesting challenges in maintaining net income levels.

Balance Sheet

The Debt-to-Equity Ratio is 0.37, showing a manageable level of leverage. The Equity Ratio stands at 19.14%, suggesting a stable equity position. However, Return on Equity has been volatile, with negative ROE in 2022 and a rebound to 18.33% in the TTM, indicating fluctuating profitability.

Cash Flow

Free Cash Flow has grown consistently, with a 14.5% increase from 2022 to 2023, and further growth into the TTM. The Operating Cash Flow to Net Income ratio is strong, indicating robust cash generation relative to earnings. The Free Cash Flow to Net Income ratio is similarly healthy, supporting future growth and investment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.32B	64.11B	57.09B	51.60B	50.65B	41.93B
Gross Profit	14.81B	15.10B	7.67B	6.66B	14.01B	13.27B
EBITDA	5.97B	6.72B	735.00M	-648.00M	7.88B	7.81B
Net Income	4.04B	4.67B	-188.00M	-1.29B	1.61B	5.58B
Balance Sheet
Total Assets	115.16B	111.62B	103.36B	97.99B	99.44B	125.99B
Cash, Cash Equivalents and Short-Term Investments	7.38B	5.24B	5.87B	4.91B	4.77B	7.12B
Total Debt	8.09B	8.09B	7.94B	7.96B	7.98B	7.83B
Total Liabilities	93.11B	90.25B	85.73B	80.63B	74.31B	95.77B
Stockholders Equity	22.05B	21.44B	17.77B	17.49B	25.18B	30.22B
Cash Flow
Free Cash Flow	8.97B	8.72B	3.96B	4.70B	4.77B	5.18B
Operating Cash Flow	9.23B	8.93B	4.23B	5.12B	5.12B	5.49B
Investing Cash Flow	-8.17B	-8.25B	-3.00B	-1.73B	510.00M	-3.44B
Financing Cash Flow	-865.00M	-697.00M	-1.24B	-3.42B	-5.24B	-2.01B

Allstate Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 193.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALL, the sentiment is Negative. The current price of 193.33 is below the 20-day moving average (MA) of 196.37, below the 50-day MA of 200.48, and below the 200-day MA of 194.33, indicating a bearish trend. The MACD of -1.79 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 20.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALL.

Allstate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRB	82 Outperform	$26.23B	16.03	20.73%	3.43%	11.39%	14.76%
ALL	74 Outperform	$51.55B	13.31	19.88%	2.07%	11.49%	219.86%
CB	73 Outperform	$111.42B	13.39	13.40%	1.40%	9.09%	-7.55%
CINF	71 Outperform	$23.11B	16.13	10.97%	2.35%	2.44%	-38.76%
TRV	70 Outperform	$58.00B	13.94	16.05%	1.73%	9.60%	36.89%
Sector *	67 Neutral	$16.77B	11.73	9.77%	3.75%	12.07%	-8.28%
PGR	66 Neutral	$143.61B	16.49	34.34%	0.16%	20.74%	51.73%

Allstate Corporate Events

Allstate Completes Sale of Group Health Business

On July 1, 2025, Allstate announced the completion of the sale of its group health business, a move that was previously disclosed. This transaction marks a significant shift in Allstate’s operational focus, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (ALL) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Allstate stock, see the ALL Stock Forecast page.

Allstate Reports May 2025 Catastrophe Losses

In May 2025, Allstate released its monthly report detailing estimated catastrophe losses and the number of policies in force. This announcement is significant as it provides insights into the company’s financial health and operational resilience, which are crucial for stakeholders assessing Allstate’s market positioning and future prospects.

The most recent analyst rating on (ALL) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Allstate stock, see the ALL Stock Forecast page.

Allstate Holds Annual Stockholders Meeting on Governance

On May 29, 2025, Allstate held its annual stockholders meeting, where key decisions were made regarding the company’s governance and financial oversight. Thirteen directors were elected for terms expiring at the 2026 meeting, and the compensation of named executives was approved by a majority vote. Additionally, Deloitte & Touche LLP was ratified as the independent registered public accountant for 2025, reflecting continued confidence in their financial auditing capabilities.

The most recent analyst rating on (ALL) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Allstate stock, see the ALL Stock Forecast page.

Allstate Releases April 2025 Catastrophe Loss Report

In April 2025, Allstate released its monthly report detailing estimated catastrophe losses and the number of policies in force. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and operational resilience in the face of catastrophic events.

The most recent analyst rating on (ALL) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Allstate stock, see the ALL Stock Forecast page.

Allstate Releases March 2025 Catastrophe Loss Report

In March 2025, Allstate released its monthly report detailing estimated catastrophe losses and policies in force, which is available on their investor website. This announcement provides insights into the company’s financial health and operational impacts, potentially affecting stakeholders’ perspectives on Allstate’s market positioning.