NEW YORK ( TheStreet) -- Greenlight Capital Re (Nasdaq: GLRE) 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, expanding profit margins, good cash flow from operations and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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- GLRE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
- 37.09% is the gross profit margin for GREENLIGHT CAPITAL RE LTD which we consider to be strong. Regardless of GLRE's high profit margin, it has managed to decrease from the same period last year.
- Net operating cash flow has significantly decreased to -$18.45 million or 776.31% when compared to the same quarter last year.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation.