| 2008 | 2009 | 2018 | 2019 (projected) | Greenlight Capital Revenues USD | 183,029,000 | 29,257,000 | 33,645,550 | 215,063,774 | Greenlight Capital Revenues | 183,029,000 | 29,257,000 | 33,645,550 | 355,150,000 |
Will Greenlight Capital continue to go ballistic?
 | By Vlad Skutelnik | Macroaxis Story |
In this write-up I will digest Greenlight Capital. I will look into why despite ongoing dip, the longer-term fundamental drivers of the firm are still sound. Greenlight Capital barely shadows market. The returns on investing in Greenlight Capital and the market returns of the last few months appear uncorrelated. The appearance of sound fundamental drivers of the firm indicates shorter-term price swing for shareholders of the firm. Greenlight Capital retains regular Real Value of $9.1225 per share. The prevalent price of the corporation is $8.75. At this time the corporation appears to be undervalued. Macroaxis calculates value of Greenlight Capital from evaluating the corporation fundamentals such as Current Valuation of 394.48M, Return On Asset of (5.30)% and Return On Equity of (34.12)% as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage to acquire undervalued assets and to sell overvalued assets since at some point stocks prices and their ongoing real values will come together.
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Reviewed by Michael Smolkin
The company average rating is Strong Buy from 1 analysts. As of 09 of July Greenlight Capital retains Risk Adjusted Performance of (0.12) and Market Risk Adjusted Performance of (2.11). Greenlight Capital technical analysis makes it possible for you to employ historical prices and volume momentum with intention to determine a pattern that calculates the direction of the corporation future prices. In other words you can use this information to find out if the corporation will indeed mirror its model of historical price patterns or the prices will eventually revert. We found nineteen technical drivers for Greenlight Capital which can be compared to its competitors. Please check out Greenlight Capital Treynor Ratio, and the relationship between Standard Deviation and Downside Variance to decide if Greenlight Capital is priced fairly providing market reflects its last-minute price of 8.75 per share. Given that Greenlight Capital Re Ltd has Jensen Alpha of (0.39), we strongly advise you confirm Greenlight Capital regular market performance to make sure the company can sustain itself at future point.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Greenlight Capital. Your research has to be compared to or analyzed against Greenlight Capital's peers to derive any actionable benefits. When done correctly, Greenlight Capital's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Greenlight Capital.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Greenlight Capital Re. In general, sophisticated investors focus on analyzing Greenlight Capital stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Greenlight Capital's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Greenlight Capital's intrinsic value. In addition to deriving basic predictive indicators for Greenlight Capital, many experienced traders also check how macroeconomic factors affect Greenlight Capital price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Greenlight Capital's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Greenlight Capital's Liquidity
Greenlight Capital financial leverage refers to using borrowed capital as a funding source to finance Greenlight Capital Re ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Greenlight Capital financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Greenlight Capital's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Greenlight Capital's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Greenlight Capital's total debt and its cash.
Greenlight Capital Gross Profit
Greenlight Capital Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Greenlight Capital previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Greenlight Capital Gross Profit growth over the last 10 years. Please check Greenlight Capital's gross profit and other fundamental indicators for more details.
A Deeper Perspective
The recent decline in stock price may raise some interest from investors. The Stock closed today at a share price of 8.5 on 168034.000 in trading volume. The company executives have failed to build on market volatilities in June. However, diversifying your overall positions with Greenlight Capital may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.1018. The current volatility is consistent with the ongoing market swings in June 2019 as well as with Greenlight Capital Re Ltd unsystematic, company specific events. Greenlight Capital retains debt to equity of 18.80% . Greenlight Capital is selling for under 8.75. That is 2.10 percent increase. Started trading at 8.75. Greenlight Capital Cash and Equivalents is decreasing over the last 4 years. The ongoing value of Greenlight Capital Cash and Equivalents is 9,500,000. Also, Greenlight Capital Net Cash Flow Business Acquisitions and Disposals is increasing over the last 4 years.
To conclude, our research shows that Greenlight Capital is moderately volatile with below average probability of distress in the next two years. Our current buy-sell advice on the firm is Hold.
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