NEW YORK ( TheStreet) -- OneBeacon Insurance Group (NYSE: OB) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • This stock has managed to decline in share value by 3.51% over the past twelve months. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The revenue fell significantly faster than the industry average of 8.6%. Since the same quarter one year prior, revenues fell by 41.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The company has increased its net income during the last reported quarter when compared with the same quarter a year earlier. However, since the company had zero dollars in net income for the prior period, we are unable to calculate a percent change in order to compare its growth rate with that of its industry average.

OneBeacon Insurance Group, Ltd., through its subsidiaries, provides specialty insurance products and services in the United States. The company has a P/E ratio of 8.7, equal to the average insurance industry P/E ratio and below the S&P 500 P/E ratio of 17.7. OneBeacon Insurance Group has a market cap of $332.7 million and is part of the financial sector and insurance industry. Shares are down 1.1% year to date as of the close of trading on Wednesday.

You can view the full OneBeacon Insurance Group Ratings Report or get investment ideas from our investment research center.
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