OneBeacon Insurance Group Ltd. Stock Upgraded (OB)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from the ratings report include:
  • OB's very impressive revenue growth greatly exceeded the industry average of 21.6%. Since the same quarter one year prior, revenues leaped by 52.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • OB's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Net operating cash flow has significantly increased by 132.86% to $49.60 million when compared to the same quarter last year. In addition, ONEBEACON INSURANCE GROUP has also vastly surpassed the industry average cash flow growth rate of 10.87%.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, ONEBEACON INSURANCE GROUP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
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OneBeacon Insurance Group, Ltd. operates as a property and casualty insurance writer focused on specialty lines. The company has a P/E ratio of 8.5, below the S&P 500 P/E ratio of 17.7. OneBeacon Insurance Group has a market cap of $310.3 million and is part of the financial sector and insurance industry. Shares are down 14.7% year to date as of the close of trading on Monday.

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

-- Written by a member of TheStreet Ratings Staff

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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