The growth of the EPS is critical in understanding the current valuation of Blue Capital Reinsurance. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been -34.60 % over the last twelve months. EPS growth is a vital measure of execution of the strategy for Blue Capital Reinsurance since it indicates how well the business is allocating resources to benefit shareholders.
Blue Capital Reinsurance is part of the financial services sector and trades as part of the specialty insurance industry. The company CEO is Michael J. McGuire. Blue Capital Reinsurance is a reinsurance holding company. The company through its subsidiaries provides collateralized reinsurance in the property catastrophe market and invests in insurance-linked securities.
Previous Intraday Performance:
The BCRH shares had a previous change of -0.32% which opened at 6.30 and closed at 6.22. It moved to an intraday high of 6.30 and a low of 6.09.
Over the last five trading days, BCRH shares returned 1.97% and in the past 30 trading days it returned -29.80%. Over three months, it changed -35.32%. In one year it has changed -44.07% and within that year its 52-week high was 13.28 and its 52-week low was 5.85. BCRH stock is 6.32% above its 52 Week Low.
Our calculations result in a 200 day moving average of 9.98 and a 50 day moving average of 8.45. Right now, BCRH stock is trading -37.69% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.
The company has a market cap of $54.5m with 8.8m shares outstanding and a float of 8.7m shares. Trading volume was 14,639 shares and has experienced an average volume of 16,956 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.
The last annual reported EPS for Blue Capital Reinsurance was -4.94 which ended on 31st of December 2017. Based on 1 analyst estimate, the estimated EPS for the next quarter is -0.15.
Below was the last reported quarterly earnings per share:
The dividend per share is currently 1.20, which is a dividend yield of 19.29%. BCRH stock may not have sufficient earnings to cover future dividends and still be able to invest in and grow the business, therefore in the future the dividend may be reduced.
Base on our calculations, the intrinsic value per share is 18.26, which means it might be undervalued and has a margin of safety of 65.94%
Indicators Also to Watch:
Based on the latest filings, there is 28.10% of institutional ownership. Short-interest was 197,795, which was 2.26% of shares outstanding. The short-interest ratio or days-to-cover ratio was 10.46. This stock has some short interest, but it might be normal and no need to worry if long the position.
I calculated the beta to be 0.26
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Based on last reported financials, the company’s return on equity is -3.07%, return on assets is -1.99%, profit margin is -8.74%, price-to-sales is 1.66 and price-to-book is 0.47.
Company Score Card:
Results are out of six:
3 : Growth Expectations Result
6 : Financial Safety Result
0 : Past Performance Result
3 : Valuation Result
2 : Dividend Safety Result
2 : Overall Result