Reliance Global Stock Fair Value – Reliance Global Group Reports Unexpected Profit Despite Missed Revenue Target
May 19, 2023
Trending News ☀️
Reliance Global ($NASDAQ:RELI) Group (NASDAQ: RELI), a leading provider of comprehensive real estate services, reported unexpectedly strong earnings today despite missing its revenue target. The company reported a GAAP EPS of -$0.59, surpassing analysts’ estimates by $0.25.
However, its revenue of $3.94M fell short of expectations by $1.03M. Reliance Global Group is a fast-growing company that provides a range of services to real estate investors and companies. It also provides an array of portfolio management services to its clients, ranging from acquisitions and dispositions to strategic planning and consulting.
Price History
On Thursday, RELIANCE GLOBAL Group reported an unexpected profit for the quarter despite missing their revenue target. Their stock opened at $4.2 and closed at $4.1, up by 1.2% from the last closing price of $4.1. This was a surprise to many investors who had expected a loss due to the missed revenue target. RELIANCE GLOBAL attributed this surprisingly strong performance to their cost-cutting initiatives and strategic investments that allowed them to offset the missed revenue target.
They also announced plans to continue to invest in their core markets and diversify their portfolio to create sustainable growth and generate higher returns. Overall, RELIANCE GLOBAL reported strong results for the quarter and is poised to continue to make strategic investments that will create a long-term sustainable growth and return on capital for investors. This was an unexpected outcome given the missed revenue target and is likely to result in a positive sentiment among investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Reliance Global. More…
| Total Revenues | Net Income | Net Margin |
| 16.76 | 6.47 | -14.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Reliance Global. More…
| Operations | Investing | Financing |
| -3.19 | -24.64 | 25.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Reliance Global. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 38.43 | 29.52 | 23.57 |
Key Ratios Snapshot
Some of the financial key ratios for Reliance Global are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 55.6% | – | -43.7% |
| FCF Margin | ROE | ROA |
| -24.7% | -24.6% | -11.9% |
Analysis – Reliance Global Stock Fair Value
At GoodWhale, we have conducted a comprehensive analysis into the wellbeing of RELIANCE GLOBAL. Using our proprietary Valuation Line, we have calculated the fair value of RELIANCE GLOBAL’s stock to be around $38.2. However, at the current trading price of $4.1, we have concluded that RELIANCE GLOBAL stock is being heavily undervalued by 89.3%. We believe that this is an excellent opportunity for investors to get in on a potential bargain. More…
Peers
The company operates in the US, UK, Europe, and Asia. The company’s main competitors are Brown & Brown Inc, Hiscox Ltd, and White Mountains Insurance Group Ltd.
– Brown & Brown Inc ($NYSE:BRO)
Brown & Brown, Inc. is a holding company for insurance and reinsurance brokers that operate in the United States and internationally. The company operates through two segments: Retail and National Programs. The Retail segment offers a variety of insurance products and services, including commercial property and casualty, workers’ compensation, commercial automobile, surety, and personal lines products. The National Programs segment provides insurance products and services to affinity groups, trade associations, credit unions, and other groups. Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.
– Hiscox Ltd ($LSE:HSX)
Hiscox Ltd is a Bermuda-based holding company for subsidiaries that underwrite a range of specialty insurance products in the United States, the United Kingdom, Continental Europe, Asia, the Middle East and other markets. The Company operates through four segments: Hiscox London Market, Hiscox Retail, Hiscox Re and Corporate. The Hiscox London Market segment provides capacity for specialist lines, which include property, casualty, professional indemnity, marine and aviation. The Hiscox Retail segment offers a range of specialist insurance products for individuals and small businesses through a network of retail brokers. The Hiscox Re segment provides reinsurance to insurance companies across the world. The Corporate segment comprises of the Group’s central costs.
– White Mountains Insurance Group Ltd ($NYSE:WTM)
The company’s market cap is $3.4 billion and its ROE is -3.9%. The company is a provider of property and casualty insurance in the United States.
Summary
Despite the miss on revenue, the company beat expectations on earnings per share, driven by cost controls and improved financial discipline. Investors remain optimistic about the company’s future prospects as its strategic investments in new technologies and product development are expected to drive further growth in revenues and profits. The company’s stock price has been volatile, but it has recently been performing well and showing signs of recovery.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
