Citizens, Inc.

AI-generated fair value estimate for this company.

Method: Excess-return-on-equity (residual income/Gordon-on-book) model: book value per share = $4.64, trailing ROE = 5.00%, cost of equity r = 9% (small-cap, thinly-traded life insurer), long-term growth g = 2%; sustainable P/B = (ROE-g)/(r-g) = 0.03/0.07 = 0.4286x; Value = 0.4286 * $4.64 = $1.99/share. Inputs from stockanalysis.com statistics page: price $3.54, market cap $179.28M, 50.64M shares, TTM revenue $255.01M, net income $11.60M, EPS $0.22, P/B 0.76x, cash $15.41M with no reported debt, as of late Sept/early Oct 2026.

Reasoning: As an international (mostly Latin America-focused) life insurer, Citizens' value is best captured by comparing its return on equity to its cost of capital rather than a revenue multiple; because its ROE (5%) sits meaningfully below a reasonable 9% cost of equity for a small, illiquid insurer, the excess-return framework implies a discount to book value — here larger than the market's current 0.76x P/B, suggesting the stock may be pricing in either return-on-equity improvement or embedded-value upside in the in-force block not captured in simple GAAP book value.