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Greenlight Capital Re (GLRE)
NASDAQ:GLRE
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Greenlight Capital Re
(NASDAQ:GLRE)
Rating:73Outperform
Price Target:
$16.00
▲(7.74%Upside)
Greenlight Capital Re (GLRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$512.11M
Dividend YieldN/A
Average Volume (3M)96.79K
Price to Earnings (P/E)11.2
Beta (1Y)0.47
Revenue Growth5.21%
EPS Growth-57.04%
CountryUS
Employees75
SectorFinancial
Sector Strength77
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)0.86
Shares Outstanding34,555,430
10 Day Avg. Volume109,196
30 Day Avg. Volume96,793
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.55
Price to Sales (P/S)0.00
P/FCF Ratio-1.99
Enterprise Value/Market Cap0.62
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.56
Enterprise Value/Ebitda1.36
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. It provides a wide range of reinsurance solutions to insurers, primarily in the North American and global markets. The company's core services include offering customized reinsurance products that cater to specific client needs, leveraging its expertise in underwriting and risk assessment.
How the Company Makes MoneyGreenlight Capital Re generates revenue primarily through the underwriting of reinsurance contracts. The company collects premiums from its clients, which are insurance companies seeking to mitigate risk by transferring a portion of their liabilities. The collected premiums are invested in various asset classes to generate investment income, which forms a significant part of the company's earnings. Greenlight Capital Re's investment strategy, managed by DME Advisors, LP, is focused on achieving high returns through a value-oriented approach. This investment income, combined with underwriting profits from accurately pricing risk and managing claims effectively, constitutes the primary revenue streams for the company. Partnerships with brokers and other intermediaries also play a crucial role in facilitating client relationships and expanding market reach.
Greenlight Capital Re Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 10.49%|
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 Financial Statement Overview
Summary
Greenlight Capital Re exhibits a mixed financial performance with strong equity and no debt, indicating financial stability. However, income and cash flow statements reveal potential operational and cash management challenges, with high net income contrasting with low revenue, suggesting possible one-time gains or unusual income sources. Cash flow generation issues need addressing 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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 580.26M | 32.42M | 624.28M | 414.63M | 571.34M | 479.66M | Gross Profit |
| 571.59M | 23.24M | 616.25M | 414.63M | 571.34M | 479.66M | EBIT |
| 46.94M | 43.56M | 86.93M | 73.25M | 22.20M | 1.14M | EBITDA |
| 46.94M | 43.56M | 86.93M | 0.00 | 39.26M | 5.32M | Net Income Common Stockholders |
| 45.42M | 42.82M | 86.83M | 25.34M | 17.58M | 3.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 642.76M | 649.09M | 51.08M | 38.24M | 76.31M | 8.94M | Total Assets |
| 2.15B | 2.02B | 1.74B | 1.58B | 1.43B | 1.36B | Total Debt |
| 0.00 | 60.75M | 73.28M | 80.53M | 98.06M | 95.79M | Net Debt |
| -642.76M | -3.94M | 22.20M | 42.30M | 21.75M | 86.86M | Total Liabilities |
| 1.49B | 1.38B | 1.14B | 1.08B | 951.83M | 892.79M | Stockholders Equity |
| 666.80M | 635.88M | 596.10M | 503.12M | 475.66M | 464.86M |
| Cash Flow | Free Cash Flow | ||||
| 103.92M | 111.50M | 7.51M | -139.05M | -57.53M | -91.32M | Operating Cash Flow |
| 103.92M | 111.50M | 7.51M | -31.80M | -56.30M | -91.32M | Investing Cash Flow |
| -82.72M | -96.56M | -53.13M | 47.02M | 23.09M | 95.63M | Financing Cash Flow |
| -21.24M | -21.24M | -5.29M | -19.83M | -10.00M | -17.78M |
Greenlight Capital Re Technical Analysis
Positive
14.85
Price Trends
13.59
Positive
13.57
Positive
13.82
Positive
Market Momentum
0.35
Negative
67.50
Neutral
76.31
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 14.85 is above the 20-day moving average (MA) of 14.13, above the 50-day MA of 13.59, and above the 200-day MA of 13.82, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 76.31 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 1 risk factors in its most recent earnings report. Greenlight Capital Re reported the most risks in the "Legal & Regulatory" 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $729.27M | 9.19 | 27.59% | ― | 11.41% | 53.85% | |
74 Outperform | $514.99M | 7.86 | 13.17% | 46.62% | 33.42% | -28.30% | |
73 Outperform | $512.11M | 11.20 | 7.04% | ― | 5.21% | -57.04% | |
65 Neutral | $12.93B | 9.81 | 7.84% | 78.03% | 12.20% | -7.74% | |
61 Neutral | $515.45M | 7.03 | 31.11% | ― | 12.19% | 5.12% | |
48 Neutral | $448.58M | 46.45 | 1.95% | 13.95% | ― | -66.59% | |
47 Neutral | $318.03M | 62.79 | -2.23% | ― | 10.50% | -92.02% |
* Financial Sector Average
Performance Comparison
GLRE
Greenlight Capital Re
14.85
2.10
16.47%
GAIN
Gladstone Investment
14.22
2.19
18.20%
PNNT
Pennantpark Investment
6.87
0.26
3.93%
AMBC
Ambac Financial
6.80
-5.72
-45.69%
ACIC
American Coastal Insurance
10.65
0.30
2.90%
HRTG
Heritage Insurance Holdings
23.88
16.32
215.87%
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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.