GLRE

We rate GREENLIGHT CAPITAL RE, LTD. (GLRE) as a Hold with a composite score of 51.2/100 at a current price of $14.00. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in stability (77th percentile) and value (54th percentile), which together account for the majority of the composite score. Offsetting weakness in quality (34th percentile) and momentum (49th percentile) tempers our overall conviction. We assign a No Moat rating (21/100), Low uncertainty, and Standard capital allocation.

Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

GREENLIGHT CAPITAL RE, LTD. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 51.2/100 places it at rank #1821 in our full 7,333-stock universe. At $434M in market capitalization, GREENLIGHT CAPITAL RE, LTD. is a small-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue contraction of -16% combined with momentum at the 49th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.

The margin cascade tells an important story: gross margins of 0% (-76.5pp vs sector) narrow to operating margins of 8% (-9.2pp vs sector) and net margins of 7.8%, yielding a gross-to-net conversion rate of N/A%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $14.00, GREENLIGHT CAPITAL RE, LTD. is trading near fair value based on current fundamentals. Our value factor score of 54/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 7.6x (a 36% discount to the sector median of 11.9x), EV/EBITDA of 8.1x (near the sector median), P/B of 0.7x, P/S of 0.7x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Low uncertainty rating to GREENLIGHT CAPITAL RE, LTD.. The company exhibits strong financial stability with a beta of 0.39, conservative leverage (5% D/E), and a stability factor in the 77th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.

Specific risk factors that inform our assessment include: weak quality scores (34th percentile); low beta of 0.39 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 77th percentile and quality factor at the 34th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: conservative leverage (5% D/E) limits balance sheet risk; above-average stability (77th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate GREENLIGHT CAPITAL RE, LTD.'s capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 9.7%, and the balance sheet is managed within acceptable parameters (D/E: 5%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; GREENLIGHT CAPITAL RE, LTD. falls short on at least one dimension.

There is room for improvement in optimizing the capital structure or enhancing shareholder returns. Absent a dividend, the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.

In summary, GREENLIGHT CAPITAL RE, LTD. receives a Hold rating with a composite score of 51.2/100 (rank #1821 of 7,333). Our quantitative framework assigns a No Moat (21/100, trend: stable), Low uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 53/100.

Our analysis supports a neutral stance on GREENLIGHT CAPITAL RE, LTD.. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.