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NEW YORK (

TheStreet

)

-- SeaBright Holdings

(NYSE:

SBX

) has been upgraded by TheStreet Ratings from sell to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • SBX's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.0%. Since the same quarter one year prior, revenues slightly dropped by 7.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The share price of SEABRIGHT HOLDINGS INC has not done very well: it is down 21.37% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for SEABRIGHT HOLDINGS INC is currently extremely low, coming in at 5.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.30% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $9.85 million or 53.07% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

.

SeaBright Holdings, Inc., through its subsidiaries, provides multi-jurisdictional workers' compensation insurance for maritime customers, state act customers, and employers in the construction industry. SeaBright has a market cap of $176.4 million and is part of the

TheStreet Recommends

financial

sector and

insurance

industry. Shares are up 5.4% year to date as of the close of trading on Friday.

You can view the full

SeaBright Ratings Report

or get investment ideas from our

investment research center

.

-- Written by a member of TheStreet RatingsStaff

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