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Reliance Global Group (RELI)
:RELI
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Reliance Global Group
(NASDAQ:RELI)
43Neutral
Reliance Global Group (RELI) vs. S&P 500 (SPY)
Market Cap
$3.63M
Dividend YieldN/A
Average Volume (3M)39.39K
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth2.35%
EPS Growth80.94%
CountryUS
Employees64
SectorFinancial
Sector Strength81
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)-17.89
Shares Outstanding2,869,869
10 Day Avg. Volume28,646
30 Day Avg. Volume39,391
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)-1.10
P/FCF Ratio1.90
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
Reliance Global Group Business Overview & Revenue Model
Company DescriptionReliance Global Group, Inc. engages in the acquisition and management of wholesale and retail insurance agencies in the United States. It provides healthcare and Medicare, personal and commercial, trucking, and employee benefits insurance products. The company was formerly known as Ethos Media Network, Inc. and changed its name to Reliance Global Group, Inc. in October 2018. Reliance Global Group, Inc. was incorporated in 2013 and is headquartered in Lakewood, New Jersey.
How the Company Makes MoneyReliance Global Group generates revenue through several key streams. In the insurance sector, the company makes money by underwriting insurance policies and earning premiums from policyholders. The company also partners with a network of independent agents to expand its reach and enhance its service offerings, earning commissions on the policies sold. In the real estate sector, Reliance Global Group earns income through the acquisition, management, and leasing of residential and commercial properties. The company benefits from rental income, property management fees, and potential gains from property appreciation. These combined efforts in insurance and real estate enable the company to diversify its revenue streams and mitigate risk across different market sectors.
Reliance Global Group Financial Statement Overview
Summary
Reliance Global Group presents financial challenges characterized by persistent losses, high leverage, and negative cash flows. Despite revenue growth, profitability and financial stability are major concerns. The company needs to address operational inefficiencies and improve cash management to enhance financial health.Income Statement
Reliance Global Group has seen fluctuating revenue growth, with revenue increasing over the past two years. However, the company consistently experiences negative net income, indicating poor profitability. EBIT and EBITDA margins are negative, reflecting operational inefficiencies.32
Negative
Balance Sheet
The debt-to-equity ratio is extremely high, suggesting significant leverage and financial risk. Stockholders' equity has decreased over time, and the equity ratio is low, implying limited financial stability. Negative return on equity further highlights poor shareholder returns.28
Negative
Cash Flow
The company has negative operating and free cash flows, indicating cash generation issues. While there has been some improvement in free cash flow over the past year, the overall cash flow position remains weak with limited liquidity.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 14.05M | 13.73M | 16.76M | 9.71M | 7.28M |
| Gross Profit | ||||
| 14.05M | 2.50M | 4.78M | 2.61M | 2.06M |
| EBIT | ||||
| -7.70M | -13.88M | -7.33M | 14.74M | -3.64M |
| EBITDA | ||||
| -5.70M | -5.76M | -3.94M | -1.31M | -2.30M |
| Net Income Common Stockholders | ||||
| -9.07M | -12.01M | 34.63M | -38.75M | -3.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 372.69K | 1.33M | 505.41K | 4.14M | 45.21K |
| Total Assets | ||||
| 17.32M | 23.02M | 38.43M | 27.68M | 17.92M |
| Total Debt | ||||
| 3.14M | 14.54M | 16.37M | 9.43M | 13.97M |
| Net Debt | ||||
| 2.76M | 13.21M | 15.86M | 5.30M | 13.92M |
| Total Liabilities | ||||
| 14.32M | 15.87M | 29.52M | 53.74M | 17.81M |
| Stockholders Equity | ||||
| 3.00M | 7.15M | 8.91M | -26.07M | 114.39K |
| Cash Flow | Free Cash Flow | |||
| -4.62M | -1.04M | -4.14M | -2.94M | -468.46K |
| Operating Cash Flow | ||||
| -4.60M | -847.97K | -3.19M | -2.25M | -468.46K |
| Investing Cash Flow | ||||
| 710.19K | 710.19K | -24.64M | -2.30M | -1.95M |
| Financing Cash Flow | ||||
| 1.66M | 966.92K | 25.12M | 8.64M | 2.45M |
Reliance Global Group Technical Analysis
Negative
1.26
Price Trends
1.66
Negative
1.77
Negative
2.52
Negative
Market Momentum
-0.10
Negative
34.06
Neutral
22.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELI, the sentiment is Negative. The current price of 1.26 is below the 20-day moving average (MA) of 1.36, below the 50-day MA of 1.66, and below the 200-day MA of 2.52, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 34.06 is Neutral, neither overbought nor oversold. The STOCH value of 22.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RELI.
Reliance Global Group Risk Analysis
Reliance Global Group disclosed 38 risk factors in its most recent earnings report. Reliance Global Group 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
Reliance Global Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $23.10B | 10.09 | 17.61% | 2.21% | 13.22% | 24.83% | |
70 Outperform | $85.85B | 42.37 | 59.80% | 0.74% | 19.81% | 28.97% | |
64 Neutral | $14.53B | 10.25 | 8.67% | 4.22% | 16.51% | -12.20% | |
59 Neutral | $1.62B | ― | -3.07% | ― | 15.97% | 78.77% | |
54 Neutral | $207.80M | ― | 1.10% | ― | 17.56% | 48.73% | |
52 Neutral | $301.64M | ― | -1.24% | ― | 8.74% | 89.80% | |
43 Neutral | $3.63M | ― | -178.85% | ― | 2.35% | 80.94% |
* Financial Sector Average
Performance Comparison
RELI
Reliance Global Group
1.26
-4.41
-77.78%
CINF
Cincinnati Financial
147.54
28.36
23.80%
EHTH
Ehealth
6.94
1.18
20.49%
MCO
Moody's
468.98
78.06
19.97%
TRUP
Trupanion
38.23
10.84
39.58%
GOCO
GoHealth
12.40
1.75
16.43%
Reliance Global Group Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -13.70% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Reliance Global Group, with significant improvements in revenue, operational efficiency, and EBITDA. Despite some increases in commission and administrative expenses, the company's strategic initiatives like the Quote & Bind platform expansion and the acquisition of Spetner Associates are expected to drive future growth.Highlights
Revenue Growth
Revenues increased by $0.3 million or 2% to $14.1 million compared to $13.7 million in the previous year, showing sustained organic growth.
Operational Efficiency
Total operating expenses decreased by 21% or $5.9 million, leading to a 45% improvement in loss from operations.
Net Loss Reduction
Net loss decreased by $2.9 million or 24% to $9.1 million from $12.1 million, attributed to reduced intangible asset impairment charges and streamlined balance sheet.
EBITDA Improvement
EBITDA improved by 39% or $0.2 million from a loss of $0.5 million to a loss of $0.3 million, driven by the OneFirm strategy and organic operational growth.
Quote & Bind Platform Expansion
The Quote & Bind platform expanded to include more carriers and a wider selection of insurance products, enhancing efficiency and underwriting accuracy.
Spetner Associates Acquisition
The acquisition of Spetner Associates is in final stages, expected to close soon, anticipated to create significant value and offer cross-selling opportunities.
Lowlights
Commission Expense Increase
Commission expense increased by $0.5 million or 12%, primarily driven by changes in commission income revenue mix.
General and Administrative Expense Increase
General and administrative expenses increased by $0.1 million or 3% due to inflation and acquisition-related costs.
Company Guidance
During the Reliance Global Group's Fourth Quarter and 2024 Year-end Business Update Call, the company provided guidance reflecting a year of robust performance and strategic growth. Key financial highlights included a 2% increase in revenues to $14.1 million, driven by organic growth, while commission expenses rose by 12% due to changes in the revenue mix. The company managed to reduce salaries and wages by 4%, showcasing operational efficiency, despite a slight 3% increase in general and administrative expenses. Total operating expenses decreased by 21%, leading to a 45% improvement in the loss from operations. The net loss reduced by 24% to $9.1 million, and adjusted EBITDA improved by 39%, reflecting the success of the company's OneFirm strategy. Looking forward, the anticipated acquisition of Spetner Associates and enhancements to the RELI Exchange AI-powered Quote & Bind platform are expected to drive further growth and profitability in the insurtech space.Reliance Global Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Reliance Global Group to Host Q4 2024 Earnings Call
Neutral
Mar 4, 2025
On March 4, 2025, Reliance Global Group announced it will host a conference call on March 6, 2025, to discuss its financial results for the fourth quarter and the year ended December 31, 2024, and to provide a business update. The call will be accessible via telephone and webcast, with replays available until March 20, 2025. This announcement is part of the company’s ongoing efforts to communicate its financial performance and strategic direction to stakeholders.
Product-Related AnnouncementsBusiness Operations and Strategy
Reliance Global Expands InsurTech Solution on RELI Exchange
Positive
Feb 18, 2025
On February 18, 2025, Reliance Global Group announced the expansion of its Commercial Quote & Bind InsurTech solution on RELI Exchange, following a successful beta launch. This expansion includes more carriers and product offerings, aiming to enhance the capabilities of independent agents by providing tools to increase efficiency and business growth. The move is part of the company’s strategy to maintain its position as a leading InsurTech provider by continuously integrating strategic technology and expanding its network, thereby optimizing the insurance purchasing experience.
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.