Greenlight Capital Re Ltd. Class A Ordinary Shares (GLRE)

FairStock Score: 82/100 — HIGH CONVICTION

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 11.1% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Revenue growth of 19.9% demonstrates strong top-line momentum
• FairStock composite score of 82/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Altman Z-Score of 0.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Greenlight Capital Re Ltd. Class A Ordinary Shares is a micro-cap financial services company valued at $641 million. Revenue stands at $721 million, though the company is currently unprofitable. From a quality standpoint, Greenlight shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.5 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 8.7x, with offers a 41% margin of safety vs Graham Number of $32. Growth dynamics show revenue growing at 19.9% and profit growth of 279.7%. Our composite FairStock Score of 82/100 reflects strong fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Greenlight's 20% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Without a clear path to profitability, continued cash burn forces either dilutive equity raises or debt accumulation that destroys shareholder value. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer