GLRE Stock Intrinsic Value – Greenlight Capital RE Reports Impressive Q1 FY2023 Results
June 27, 2023
☀️Earnings Overview
On May 9 2023, GREENLIGHT CAPITAL RE ($NASDAQ:GLRE) announced their financial results for the first quarter of FY2023, ending on March 31 2023. There was a 22.6% increase in total revenue, reaching USD 158.1 million, and net income improved significantly from -5.7 million to USD 5.9 million.
Market Price
Greenlight Capital RE (RE) reported strong financial results for the first quarter of FY2023 on Tuesday, causing its share price to jump by 4.6%. When the market opened, the stock was trading at $10.2 and closed the session at $10.6, up from its previous closing price of $10.2. The company reported a significant increase in revenue and profits due to strong sales of its real estate investments and services. This impressive performance was driven by a combination of growth across the company’s different sectors, including commercial real estate investments, residential real estate investments, and financial services.
Greenlight Capital RE’s strong performance is yet another indication of the continuing recovery of the real estate market in the U.S., driven by a combination of low interest rates, an improving economy, and an influx of foreign investment. With these positive trends expected to continue in the near future, investors remain optimistic about Greenlight Capital RE’s future prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GLRE. More…
| Total Revenues | Net Income | Net Margin |
| 501.01 | 36.96 | 7.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GLRE. More…
| Operations | Investing | Financing |
| -21.44 | -8.32 | -36.91 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GLRE. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.64k | 1.13k | 14.46 |
Key Ratios Snapshot
Some of the financial key ratios for GLRE are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.4% | – | 9.4% |
| FCF Margin | ROE | ROA |
| -4.3% | 5.8% | 1.8% |
Analysis – GLRE Stock Intrinsic Value
At GoodWhale, we have conducted an analysis into the fundamentals of GREENLIGHT CAPITAL RE. Our proprietary Valuation Line has determined that the intrinsic value of the company’s share is approximately $7.7. However, at the time of writing, the current stock price of GREENLIGHT CAPITAL RE is $10.6, which is overvalued by 37.4%. We believe that any investor looking to purchase GREENLIGHT CAPITAL RE shares should do so with caution and take this valuation discrepancy into account. More…
Peers
The company offers a wide range of products and services to its clients, which include insurance companies, reinsurers, and other financial institutions. Greenlight Capital Re Ltd. has a strong presence in the global reinsurance market and is one of the largest providers of reinsurance in the world. The company has a strong competitive advantage over its competitors due to its diversified product portfolio, strong financial position, and experienced management team.
– Brighthouse Financial Inc ($NASDAQ:BHF)
As of 2022, Brighthouse Financial has a market cap of 4.11B and a ROE of 14.76%. The company provides a variety of financial services, including life insurance, annuities, and investment products.
– MetLife Inc ($NYSE:MET)
MetLife, Inc. is an American multinational life insurance corporation, which offers life insurance, annuities, long-term care insurance, disability income insurance, and other financial services products. As of 2020, it was the largest life insurer in the United States based on assets and 13th largest in the world based on revenue.
The company has a market cap of 58.34B as of 2022 and a Return on Equity of 7.96%. MetLife is one of the largest life insurers in the United States and offers a variety of financial services products, including life insurance, annuities, long-term care insurance, and disability income insurance. The company has a strong financial position and is well-positioned to continue growing its business and delivering value to shareholders.
– Oxbridge Re Holdings Ltd ($NASDAQ:OXBR)
Oxbridge Re Holdings Ltd is a holding company that reinsures mortgage insurance policies. The company has a market cap of 11.91M as of 2022 and a ROE of 30.09%. The company was founded in 2012 and is headquartered in Hamilton, Bermuda.
Summary
Greenlight Capital RE reported strong financial results for the first quarter of FY2023, with total revenue up 22.6% and net income at USD 5.9 million – a significant improvement from the prior year. This had a positive effect on the stock price, which rose on the same day. For investors, this is a good sign that Greenlight Capital RE is performing well and demonstrates their continued sound financial management. Going forward, investors should keep an eye on the company’s progress to ensure that it remains on the right track.
