Greenlight Capital Re Ltd. Stock Upgraded (GLRE)

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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Highlights from the ratings report include:
  • 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.

Greenlight Capital Re, Ltd., through its subsidiaries, operates in the property and casualty reinsurance business in the United States, Europe, the Caribbean, and internationally. Greenlight Capital Re has a market cap of $766.6 million and is part of the financial sector and insurance industry. Shares are up 8.7% year to date as of the close of trading on Wednesday.

You can view the full Greenlight Capital Re Ratings Report or get investment ideas from our investment research center.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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