Bedrijfsoverzicht
Reliance Global Group, Inc. is a specialized entity dedicated to the acquisition and management of wholesale and retail insurance agencies throughout the United States. The company operates within the Financial Services sector, specifically functioning as an Insurance Broker, which involves facilitating the sale of various insurance products to clients. This operational scope encompasses a diverse range of offerings including healthcare and medicare, personal and commercial lines, trucking, property and casualty, and general insurance brokerage services. The enterprise maintains a market capitalization of $4.09 million, generates annual revenue of $13.12 million, and employs a workforce of 64 individuals. These financial metrics indicate that the company operates on a small-cap scale with a relatively compact revenue stream, reflecting its position as a niche player in the broader insurance brokerage landscape rather than a dominant market leader.
Financiële gezondheid
The company reported a revenue of $13.12 million over the trailing twelve months, while simultaneously recording a net income of -$7,002,578 and an EBITDA of -$7,316,871. The substantial disparity between the positive revenue figure and the significant negative net income reveals a cost structure where operating expenses and losses heavily outweigh the income generated from core business activities. Despite the negative earnings, the firm holds a free cash flow of $2.09 million, which suggests a degree of financial flexibility by generating cash from operations before capital expenditures, although this must be weighed against existing obligations. The gross margin stands at -14.5%, indicating that the cost of goods sold exceeds revenue in this segment, while the operating margin is significantly lower at -156.8%, and the profit margin is -53.4%, all pointing to a challenging operational profitability environment. On the balance sheet, the company holds $2.58 million in cash against $7.06 million in total debt, resulting in a debt-to-equity ratio of 104.67%, which characterizes the capital structure as highly leveraged rather than conservative. Liquidity is assessed via a current ratio of 1.47, indicating that current assets are 1.47 times current liabilities, providing a moderate but not excessive buffer against short-term obligations. Furthermore, the return on equity is -146.4% and the return on assets is -32.9%, metrics that reveal that management has not been effective in generating positive returns on the capital invested or the assets utilized during this period.
Waarderingsbeoordeling
The valuation multiples present a complex picture, with a trailing twelve-month P/E ratio of 3.77 contrasted against a forward P/E of 0.85. The significant divergence between these two figures implies that the market expects a substantial improvement in earnings trajectory or that the forward multiple is driven by anticipated cost reductions or one-time gains not yet reflected in historical performance. The price-to-book ratio is recorded at 0.58, suggesting that the market values the company at a discount to its book value, which often occurs in firms with negative earnings or high leverage. Alternative valuation metrics include a price-to-sales ratio of 0.31 and an EV/EBITDA of -0.98, figures that suggest the stock is priced based on revenue multiples given the inability to apply standard earnings-based valuations due to current losses. The stock price has fluctuated significantly, trading between a 52-week high of $3.55 and a 52-week low of $0.15, illustrating extreme price volatility within a single year. The beta value of 0.07 indicates that the stock's price movements have historically been virtually uncorrelated with the broader market, displaying negligible volatility relative to general market swings.
Growth & Income
Revenue growth for the year over year was -27.5%, while earnings growth is listed as N/A due to the current negative earnings base. The contraction in revenue indicates a shrinking top line, and the absence of positive earnings growth reinforces the company's struggle to stabilize profitability in the face of declining sales volume. The company does not distribute dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning that any theoretical earnings would be reinvested or retained rather than distributed to shareholders, though the current negative earnings preclude any meaningful reinvestment capacity. The overall growth and income profile is characterized by negative revenue expansion, a complete absence of dividend income, and significant operational losses, presenting a challenging outlook for capital preservation and future expansion.