Company Overview
Oxbridge Re Holdings Limited operates within the financial services sector, specifically functioning in the insurance and reinsurance industry where it specializes in providing specialty property and casualty reinsurance solutions. The company executes its business model by underwriting collateralized reinsurance contracts primarily for property and casualty insurance companies located in the Gulf Coast region of the United States, while also issuing reinsurance products. This entity is a micro-cap organization with a market capitalization of $6.82M and an annual revenue of $2.42M, supported by a workforce of only 3 employees. The combination of a $6.82M market cap and $2.42M in revenue indicates that the company operates on a very small scale, suggesting limited operational breadth and a highly focused niche strategy rather than diversified market exposure.
Financial Health
The company reported revenue of $2.42M over the trailing twelve months, yet recorded a net income of $-2,659,000 and an EBITDA of $-3,070,750, revealing a significant structural cost burden where expenses substantially exceed earnings. The free cash flow stands at $-4,576,625, which indicates a lack of financial flexibility and an inability to generate internal capital for operations or expansion without external financing. Profitability metrics are severely compromised, with a gross margin of -5.2%, an operating margin of -26.4%, and a profit margin of -109.7%, each figure demonstrating that the company is losing money on its core operations and overall profitability. The balance sheet shows a cash position of $726,000 against total debt of $1.40M, resulting in a debt-to-equity ratio of 24.64, which characterizes the company as highly leveraged with liabilities significantly outweighing its equity base. Despite the debt load, the current ratio is 4.39, indicating that the company possesses ample short-term liquid assets to cover its immediate liabilities. Return on equity is -56.3% and return on assets is -23.7%, metrics that reveal management is currently ineffective at generating positive returns on the capital invested in the business.
Valuation Assessment
The valuation multiples present a distorted picture due to losses, with a trailing P/E ratio that is N/A and a forward P/E of -44.40, implying that the market is pricing in a significant deterioration or absence of expected earnings growth. The price-to-book ratio is 1.19, suggesting that the market values the company at a slight premium above its book value despite the reported losses. Alternative valuation metrics such as a price-to-sales ratio of 2.81 and an EV/EBITDA of -2.42 suggest that the market is relying heavily on sales revenue rather than earnings or cash flow to justify the current stock price. The stock has traded between a 52-week high of $2.86 and a 52-week low of $0.76, meaning the current price sits below the 52-week high and above the 52-week low, reflecting recent volatility. The beta value is 2.34, which signifies that the stock is highly volatile and moves with more than twice the magnitude of the broader market, presenting significant price fluctuation risks for holders.
Growth & Income
Revenue growth over the last year stands at 214.6%, while earnings growth is N/A, indicating that top-line sales are expanding rapidly but are not yet translating into profitability or earnings expansion. Because the company is not a dividend payer, there is no dividend yield or payout ratio to evaluate, meaning the company currently retains all earnings rather than distributing them to shareholders. Since the company does not pay dividends, it effectively reinvests its limited cash reserves into its operations or growth initiatives rather than providing income to investors. The overall growth and income profile is defined by rapid revenue expansion coupled with significant operating losses and an absence of dividend income.