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Greenlight Capital Re (GLRE)
NASDAQ:GLRE
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Greenlight Capital Re
(NASDAQ:GLRE)
Rating:65Neutral
Price Target:―
Greenlight Capital Re (GLRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$467.88M
Dividend YieldN/A
Average Volume (3M)85.34K
Price to Earnings (P/E)10.3
Beta (1Y)0.46
Revenue Growth7.75%
EPS Growth-49.93%
CountryUS
Employees75
SectorFinancial
Sector Strength82
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)0.86
Shares Outstanding34,555,430
10 Day Avg. Volume87,004
30 Day Avg. Volume85,337
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.74
Price to Sales (P/S)0.00
P/FCF Ratio4.21
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit0.69
Enterprise Value/Ebitda7.73
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, Ltd. (GLRE) is a specialty property and casualty reinsurance company. Headquartered in the Cayman Islands, the company provides a diverse range of reinsurance solutions primarily to insurance companies globally. Its core services include offering reinsurance coverage for property, casualty, and other specialty lines of insurance, helping clients manage risk and improve financial stability.
How the Company Makes MoneyGreenlight Capital Re generates revenue through the premiums it collects from its reinsurance contracts. These contracts are agreements where Greenlight Capital Re takes on a portion of the risk associated with insurance policies underwritten by its clients, in exchange for premium payments. The company also seeks to generate investment income by investing the premiums it receives in a diversified portfolio, including equities and fixed income securities. This investment strategy aims to optimize returns, thereby supplementing the company's underwriting income. Key factors contributing to its earnings include effective risk management, strategic investment decisions, and maintaining strong relationships with its primary insurer clients.
Greenlight Capital Re Financial Statement Overview
Summary
Greenlight Capital Re's financial performance is mixed. Strong equity and no debt indicate financial stability. However, income and cash flow statements reveal operational challenges, with high net income in 2024 contrasting with low revenue, suggesting possible one-time gains or unusual income sources. Cash flow generation issues need to be addressed for sustainable growth.Income Statement
Greenlight Capital Re showed a mixed performance in its income statement. The company experienced strong revenue growth of 33% from 2022 to 2023, but revenue declined significantly in 2024. The net profit margin for 2024 was exceptionally high due to a drop in revenue yet an increase in net income. However, EBIT and EBITDA margins were not applicable due to zero EBIT and EBITDA, indicating potential volatility and operational challenges.65
Positive
Balance Sheet
The balance sheet of Greenlight Capital Re reflects a strong financial position. The company has no debt as of 2024, leading to a debt-to-equity ratio of 0. The equity ratio stands at a solid 31.5%, indicating a healthy balance between assets and equity. The return on equity was notably high at 67.3% in 2024, driven by a substantial net income, suggesting efficient use of equity capital. However, the fluctuations in stockholders' equity and total assets over the years indicate potential instability.75
Positive
Cash Flow
Cash flow analysis reveals some concerns for Greenlight Capital Re. The company showed a negative operating cash flow in 2024, indicating challenges in generating cash from operations. The free cash flow has fluctuated significantly over the years, showing negative growth in 2024. The free cash flow to net income ratio was negative in 2024, suggesting inconsistencies in cash generation relative to net income.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 647.97M | 624.28M | 414.63M | 571.34M | 479.66M | Gross Profit |
| 647.97M | 624.28M | 414.63M | 571.34M | 479.66M | EBIT |
| 43.56M | 616.31M | 73.25M | 22.20M | 1.14M | EBITDA |
| 0.00 | 0.00 | 0.00 | 39.26M | 5.32M | Net Income Common Stockholders |
| 42.82M | 86.83M | 25.34M | 17.58M | 3.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 649.09M | 51.08M | 38.24M | 76.31M | 8.94M | Total Assets |
| 2.02B | 1.74B | 1.58B | 1.43B | 1.36B | Total Debt |
| 60.75M | 73.28M | 80.53M | 98.06M | 95.79M | Net Debt |
| -3.94M | 22.20M | 42.30M | 21.75M | 86.86M | Total Liabilities |
| 1.38B | 1.14B | 1.08B | 951.83M | 892.79M | Stockholders Equity |
| 635.88M | 596.10M | 503.12M | 475.66M | 464.86M |
| Cash Flow | Free Cash Flow | |||
| 111.50M | 7.51M | -139.05M | -57.53M | -91.32M | Operating Cash Flow |
| 111.50M | 7.51M | -31.80M | -56.30M | -91.32M | Investing Cash Flow |
| -96.56M | -53.13M | 47.02M | 23.09M | 95.63M | Financing Cash Flow |
| -21.24M | -5.29M | -19.83M | -10.00M | -17.78M |
Greenlight Capital Re Technical Analysis
Positive
13.54
Price Trends
13.35
Positive
13.50
Positive
13.73
Negative
Market Momentum
0.07
Negative
52.86
Neutral
31.93
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 13.54 is above the 20-day moving average (MA) of 13.39, above the 50-day MA of 13.35, and below the 200-day MA of 13.73, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 52.86 is Neutral, neither overbought nor oversold. The STOCH value of 31.93 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 3 New Risks
1.
As a minority equity investor, we are often not in a position to influence the entity, and other equity holders and management of such entity may make decisions that could decrease the value of our investment in such entity. Q4, 2022
2.
Consolidation in the reinsurance industry could adversely affect us. Q4, 2022
3.
We do not intend to pay dividends on our Class A ordinary shares and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common shares. Q4, 2022
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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $710.99M | 9.06 | 27.59% | ― | 11.41% | 53.85% | |
71 Outperform | $540.77M | 8.26 | 13.17% | 6.57% | -8.68% | -3.76% | |
65 Neutral | $467.88M | 10.29 | 7.04% | ― | 7.75% | -49.93% | |
64 Neutral | $12.64B | 9.78 | 7.67% | 17015.08% | 12.23% | -6.02% | |
56 Neutral | $530.44M | 7.24 | 31.11% | ― | 12.19% | 5.12% | |
48 Neutral | $429.00M | 44.42 | 1.95% | 14.31% | ― | -66.59% | |
44 Neutral | $361.21M | 71.84 | -2.23% | ― | 10.50% | -92.02% |
* Financial Sector Average
Performance Comparison
GLRE
Greenlight Capital Re
13.50
0.04
0.30%
GAIN
Gladstone Investment
14.68
2.36
19.16%
PNNT
Pennantpark Investment
6.59
0.14
2.17%
AMBC
Ambac Financial
7.74
-9.55
-55.23%
ACIC
American Coastal Insurance
10.85
-0.75
-6.47%
HRTG
Heritage Insurance Holdings
23.42
15.29
188.07%
Greenlight Capital Re Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 0.74%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong investment performance and net income growth, but challenges in underwriting due to natural disasters and economic concerns. While investments showed notable gains, there were also some losses and concerns about future economic conditions.Q1-2025 Updates
Positive Updates
Strong Investment Performance
The Solasglas portfolio returned 7.2% in Q1 2025, contributing significantly to the company's net income and outperformed during a volatile market downturn.
Net Income Growth
Greenlight Re reported net income of $29.6 million in Q1 2025, an increase from $27 million in Q1 2024, with fully diluted book value per share increasing by 5.1% in the quarter.
Innovation Segment Profitability
The Innovation segment reported a pretax income of $0.9 million, with a combined ratio improvement to 94.3% from 99.3% in the previous year.
Positive Contributors in Investment Portfolio
Long investments in Gold, Brighthouse Financial, and Lanxess were the largest positive contributors. Gold appreciated 19% over the quarter.
Negative Updates
Underwriting Loss Due to California Wildfires
Recorded an underwriting loss of $7.8 million due to California wildfires in January, adding 14 combined ratio points and contributing to a total combined ratio of 104.6%.
Strengthening of Casualty Reserves
Strengthened historical casualty reserves by $22 million, impacting underwriting results and leading to some contraction of the casualty book.
Negative Contributors in Investment Portfolio
Long investments in Core Natural Resources and PENN Entertainment, as well as a short position in a direct-to-consumer health care company, detracted from investment performance.
Concerns Over Economic Slowdown
Expressed concerns over a significant economic slowdown in the United States, leading to bearish positioning and increased short positions in consumer discretionary companies.
Company Guidance
During the Greenlight Capital Re Limited First Quarter 2025 Earnings Conference Call, the company reported net income of $29.6 million, marking an increase in fully diluted book value per share of 5.1%. The Solasglas portfolio delivered a strong investment return of 7.2%, despite the S&P 500 Index declining 4.3% during the same period. However, the company faced an underwriting loss of $7.8 million, equating to a combined ratio of 104.6%, primarily due to a $23.6 million net loss from California wildfires, which added 14 points to the combined ratio. The Innovation segment saw a positive combined ratio of 94.3% and contributed $1.1 million to underwriting income. Meanwhile, the open market segment experienced a pretax loss due to the wildfires but achieved a growth in net written premiums by 16.6%. The company's net exposure in the investment portfolio decreased to about 20%, while the fully diluted book value per share rose to $18.87, an 8.5% increase from the first quarter of 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.