Education
About Us
Working with TipRanks
Follow Us
Greenlight Capital Re (GLRE)
NASDAQ:GLRE
Top Page
Greenlight Capital Re
(NASDAQ:GLRE)71Outperform
Greenlight Capital Re (GLRE) vs. S&P 500 (SPY)
Market Cap
$485.91M
Dividend YieldN/A
Average Volume (3M)78.59K
Price to Earnings (P/E)5.5
Beta (1Y)0.48
Revenue Growth9.70%
EPS Growth-15.76%
CountryUS
Employees64
SectorFinancial
Sector Strength93
IndustryInsurance
Share Statistics
EPS (TTM)2.52
Shares Outstanding34,832,493
10 Day Avg. Volume79,567
30 Day Avg. Volume78,590
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.68
Price to Cash Flow (P/CF)2.90
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Greenlight Capital Re Business Overview & Revenue Model
Company DescriptionGreenlight Capital Re (GLRE) is a reinsurance company that operates within the property and casualty insurance industry. Headquartered in the Cayman Islands, the company offers reinsurance solutions to insurers seeking to reduce their risk exposure and improve their capital efficiency. Greenlight Re is known for its innovative approach to underwriting and risk management, leveraging its expertise to provide customized reinsurance products that cater to the specific needs of its clients.
How the Company Makes MoneyGreenlight Capital Re makes money primarily through the underwriting of reinsurance contracts, where it assumes a portion of the risk from insurance companies in exchange for premium payments. The company generates revenue by carefully selecting a diversified portfolio of reinsurance contracts, assessing the risk involved, and pricing these contracts to achieve a profitable margin. Additionally, Greenlight Re invests the premiums it receives into a variety of financial instruments, including equities and fixed-income securities, to generate investment income, which contributes significantly to its earnings. The company's partnership with DME Advisors, LP, a fund management company led by David Einhorn, allows it to leverage strategic investment expertise, enhancing its overall financial performance.
Greenlight Capital Re Financial Statement Overview
Summary
Greenlight Capital Re shows strong revenue growth and efficient cash flow generation, positioning it well in the insurance industry. While the company maintains a robust financial structure with low leverage, challenges in maintaining profitability margins and managing cash outflows could impact future performance. Strategic enhancements in profitability and cash management could further strengthen its financial standing.Income Statement
Greenlight Capital Re demonstrates a solid income statement with notable growth in revenue, which increased by 9.05% from 2023 to TTM 2024. The gross profit margin is strong at approximately 80.45% for TTM 2024, indicating efficient cost management. However, the net profit margin saw a slight decline to 12.9% in TTM 2024 from 13.9% in 2023. The EBIT margin also reduced to 8.15% in TTM 2024, reflecting increased operational costs. Overall, the income statement shows growth potential, but with some profitability pressures.75
Positive
Balance Sheet
The balance sheet of Greenlight Capital Re reflects a stable financial position with a debt-to-equity ratio of approximately 0.09 in TTM 2024, indicating low leverage compared to industry standards. However, the return on equity (ROE) is moderate at 13.24% in TTM 2024, reflecting moderate profitability. The equity ratio is solid at 33.14% for TTM 2024, suggesting a healthy capital structure. While the company demonstrates financial stability, growth in equity is essential for enhanced returns.70
Positive
Cash Flow
The cash flow statements reveal a strong improvement in free cash flow, which grew significantly from $7.5 million in 2023 to $104.1 million in TTM 2024. The operating cash flow to net income ratio is robust at 1.18, indicating efficient cash generation. However, the investing and financing cash flows are negative, pointing to potential challenges in cash management. While overall cash generation is strong, managing cash outflows effectively remains crucial.65
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 680.76M | 624.28M | 414.63M | 571.34M | 479.66M | 492.10M | Gross Profit |
| 547.75M | 624.28M | 414.63M | 571.34M | 479.66M | 492.10M | EBIT |
| 55.47M | 616.31M | 73.25M | 22.20M | 1.14M | -5.81M | EBITDA |
| 18.25M | 0.00 | 0.00 | 39.26M | 5.32M | -41.65M | Net Income Common Stockholders |
| 87.84M | 86.83M | 25.34M | 17.58M | 3.87M | -3.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 18.21M | 51.08M | 38.24M | 76.31M | 8.94M | 25.81M | Total Assets |
| 1.44B | 1.74B | 1.58B | 1.43B | 1.36B | 1.36B | Total Debt |
| 91.19M | 73.28M | 80.53M | 98.06M | 95.79M | 93.51M | Net Debt |
| 72.97M | 22.20M | 42.30M | 21.75M | 86.86M | 67.70M | Total Liabilities |
| 955.98M | 1.14B | 1.08B | 951.83M | 892.79M | 878.01M | Stockholders Equity |
| 477.29M | 596.10M | 503.12M | 475.66M | 464.86M | 477.18M |
| Cash Flow | Free Cash Flow | ||||
| 104.11M | 7.51M | -139.05M | -57.53M | -91.32M | 1.63M | Operating Cash Flow |
| 104.11M | 7.51M | -31.80M | -56.30M | -91.32M | 1.63M | Investing Cash Flow |
| -127.81M | -53.13M | 47.02M | 23.09M | 95.63M | 63.33M | Financing Cash Flow |
| -20.31M | -5.29M | -19.83M | -10.00M | -17.78M | 0.00 |
Greenlight Capital Re Technical Analysis
Positive
13.95
Price Trends
13.69
Positive
14.02
Negative
13.64
Positive
Market Momentum
0.05
Negative
56.92
Neutral
72.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLRE, the sentiment is Positive. The current price of 13.95 is above the 20-day moving average (MA) of 13.56, above the 50-day MA of 13.69, and above the 200-day MA of 13.64, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.92 is Neutral, neither overbought nor oversold. The STOCH value of 72.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLRE.
Greenlight Capital Re Risk Analysis
Greenlight Capital Re disclosed 74 risk factors in its most recent earnings report. Greenlight Capital Re reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Greenlight Capital Re Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $34.16B | 8.13 | 22.02% | ― | 26.24% | -3.87% | |
80 Outperform | $164.03B | 19.43 | 36.98% | 1.75% | 21.36% | 118.77% | |
75 Outperform | $12.58B | 17.78 | 7.21% | 1.85% | 19.29% | -19.91% | |
73 Outperform | $12.01B | 6.93 | 18.40% | 0.64% | 28.22% | -31.48% | |
71 Outperform | $485.91M | 5.54 | 14.18% | ― | 9.70% | -15.76% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% |
* Financial Sector Average
Performance Comparison
GLRE
Greenlight Capital Re
13.95
1.82
15.00%
ACGL
Arch Capital Group
91.00
5.12
5.96%
PGR
Progressive
279.82
87.06
45.16%
RGA
Reinsurance Group
190.59
10.30
5.71%
RNR
Renaissancere Holdings
243.82
10.22
4.38%
Greenlight Capital Re Earnings Call Summary
Earnings Call Date: Nov 4, 2024 | % Change Since: 2.88% | Next Earnings Date: Mar 10, 2025
Earnings Call Sentiment Positive
The call reflected a generally positive outlook with significant net income growth, strong investment returns, and improvements in the AM Best rating outlook. However, challenges such as decreased gross premiums written and the impact of hurricane losses were noted.Highlights
Significant Net Income Growth
Greenlight Re reported a net income of $35.2 million, up $21.7 million compared to the third quarter of 2023. This equates to a 6.1% growth in fully diluted book value per share during the quarter.
Strong Investment Returns
The Solasglas fund reported an income of $19.8 million, achieving a 5.2% return on the investment portfolio.
Improvement in AM Best Rating Outlook
AM Best affirmed Greenlight Re's A- rating and upgraded the outlook to positive from stable in October.
Underwriting Profit and Combined Ratio
The company reported a combined ratio of 95.9% for the quarter, marking the eighth consecutive quarter of underwriting profit.
Specialty Book Growth
The specialty book grew by $21.4 million or 52% compared to the third quarter last year, driven by new Marine and Energy business.
Lowlights
Decreased Gross Premiums Written
Gross premiums written for the third quarter decreased by $14.7 million or 8% to $168 million compared to the third quarter last year, primarily due to non-renewed contracts.
Hurricane Losses Impact
Hurricane Helene and other catastrophes resulted in overall catastrophe losses of $14.1 million for the quarter, contributing 9.3% to the combined ratio.
Decline in Casualty Gross Premiums
Casualty gross premiums written decreased by 15.5% due to non-renewing contracts and a shift in workers' compensation book.
Company Guidance
During the third quarter of 2024, Greenlight Capital Re reported gross written premiums of $168.3 million, reflecting an 8% decrease compared to the same quarter last year due to nonrenewed contracts. However, excluding these contracts, gross premiums increased by 3.3%. The company achieved a net income of $35.2 million, or $1.01 per diluted share, marking a significant increase from $0.39 per share in Q3 2023. The combined ratio stood at 95.9%, with catastrophe losses contributing 9.3 percentage points, while favorable prior-year loss development improved it by 3.1 points. Greenlight Re's investment portfolio, including the Solasglas fund, contributed a 5.2% return, bolstered by strong performance in specific sectors and positions. The company also highlighted growth in its specialty book by 52% in gross premiums and noted that its fully diluted book value per share grew by 16% over the past year, reaching $18.72 as of September 30, 2024.Greenlight Capital Re Corporate Events
Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Greenlight Capital Re to Host Investor Meeting
Positive
Nov 19, 2024
Greenlight Capital Re, Ltd. is set to hold an investor meeting on November 19, 2024, to discuss its strategic priorities and financial performance. With a focus on a multi-pillar strategy, the company emphasizes disciplined capital allocation and aims to leverage its agility in a competitive market. Despite a hard market, Greenlight Re maintains strong risk-adjusted returns and a promising growth trajectory, driven by innovations and a diversified underwriting portfolio.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.