OXBRIDGE RE HOLDINGS Ltd (NASDAQ: OXBR)

Sector: Financial Services Industry: Insurance - Reinsurance CIK: 0001584831
Market Cap 8.26 Mn
P/B 1.45
P/E -3.11
P/S 1.75
ROIC (Qtr) -13.45
Div Yield % 0.00
Rev 1y % (Qtr) 214.63
Total Debt (Qtr) 188,000.00
Debt/Equity (Qtr) 0.03
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About

Oxbridge Re Holdings Ltd (OXBR) operates in the specialty property and casualty reinsurance industry, with its headquarters located in the Cayman Islands. The company's primary business is underwriting fully collateralized reinsurance contracts, with a focus on property and casualty insurance companies in the Gulf Coast region of the United States, particularly in Florida. Oxbridge Re Holdings Ltd generates revenue by selling reinsurance contracts, which are predominantly written on an excess-of-loss basis. This approach provides a high level...

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Investment thesis

Bull case

  • Strong tangible asset base of 8.85M provides 47.10x coverage of total debt 188000, indicating robust asset backing and low credit risk.
  • Cash position of 7.18M provides exceptional 193.95x coverage of minority interest expenses 37000, indicating strong liquidity.
  • Cash position of 7.18M fully covers payables of 311000 by 23.07x, showing strong vendor relationship management.
  • Tangible assets of 8.85M provide robust 7.31x coverage of receivables 1.21M, showing strong asset quality.

Bear case

  • Operating cash flow of (1.76M) barely covers its investment activities of 395000, with a coverage ratio of -4.47, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (1.76M) shows concerning coverage of stock compensation expenses of 388000, with a -4.55 ratio indicating potential earnings quality issues.
  • Operating cash flow of (1.76M) shows concerning coverage of minority interest expenses of 37000, which is -47.70x, suggesting complex corporate structure risks.
  • Operating cash flow of (1.76M) is outpaced by equity issuance of 4.25M (-0.42 ratio), indicating concerning reliance on equity markets for funding operations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 2.95M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Insurance - Reinsurance
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 RGA Reinsurance Group Of America Inc 16.26 Bn 28.93 1.93 5.73 Bn
2 RNR Renaissancere Holdings Ltd 14.46 Bn 5.46 1.13 2.33 Bn
3 EG Everest Group, Ltd. 14.18 Bn 25.69 0.80 3.59 Bn
4 HG Hamilton Insurance Group, Ltd. 3.15 Bn 7.19 1.15 0.15 Bn
5 SPNT SiriusPoint Ltd 2.31 Bn 12.64 0.81 0.68 Bn
6 GLRE Greenlight Capital Re, Ltd. 0.67 Bn -359.00 1.01 0.03 Bn
7 OXBR OXBRIDGE RE HOLDINGS Ltd 0.01 Bn -3.11 1.75 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.21 0.19
EV to Cash from Ops. EV/CFO -1.03 4.67
EV to Debt EV to Debt 9.71 6.23
EV to EBIT EV/EBIT -0.69 10.21
EV to EBITDA EV/EBITDA -2.37 9.47
EV to Free Cash Flow [EV/FCF] EV/FCF -1.03 4.67
EV to Market Cap EV to Market Cap 0.22 0.74
EV to Revenue EV/Rev 0.39 0.89
Price to Book Value [P/B] P/B 1.45 1.44
Price to Earnings [P/E] P/E -3.11 -40.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 5.81
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.57
Dividend per Basic Share Div per Share (Qtr) 0.00 1.54
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.76
Interest Coverage Interest Coverage 0.00 9.07
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 0.00
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 48.85 4.59
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -5.49
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 46.15 -15.00
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 71.82 -4.52
EBIT Growth (1y) % EBIT 1y % (Qtr) 46.15 -3.67
EBT Growth (1y) % EBT 1y % (Qtr) 46.15 -4.69
EPS Growth (1y) % EPS 1y % (Qtr) 55.95 -7.41
FCF Growth (1y) % FCF 1y % (Qtr) -4,204.65 -593.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 380.90 49.82
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.53 0.29
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.19
Interest Cover Ratio Interest Cover Ratio 0.00 9.07
Times Interest Earned Times Interest Earned 0.00 9.07
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -56.30 1.49
EBIT Margin % EBIT Margin % (Qtr) -56.26 1.33
EBT Margin % EBT Margin % (Qtr) -56.26 0.23
Gross Margin % Gross Margin % (Qtr) 46.10 38.56
Net Profit Margin % Net Margin % (Qtr) -56.30 -0.94