BRANDYWINE REALTY TRUST (BDN) Stock Fundamental Analysis
NYSE:BDN - New York Stock Exchange, Inc. - US1053682035 - REIT - Currency: USD
BDN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. Both the profitability and financial health of BDN have multiple concerns. BDN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BDN had negative earnings in the past year.
BDN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BDN reported negative net income in multiple years.
Each year in the past 5 years BDN had a positive operating cash flow.
1.2 Ratios
BDN has a Return On Assets of -5.64%. This is amonst the worse of the industry: BDN underperforms 86.92% of its industry peers.
BDN has a worse Return On Equity (-18.98%) than 87.69% of its industry peers.
BDN has a Return On Invested Capital of 2.32%. This is comparable to the rest of the industry: BDN outperforms 40.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BDN is in line with the industry average of 3.17%.
The last Return On Invested Capital (2.32%) for BDN is above the 3 year average (2.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.64% | ||
| ROE | -18.98% | ||
| ROIC | 2.32% |
ROA(3y)-3.18%
ROA(5y)-0.28%
ROE(3y)-10.22%
ROE(5y)-2.59%
ROIC(3y)2.23%
ROIC(5y)2.2%
1.3 Margins
Looking at the Operating Margin, with a value of 19.24%, BDN is in line with its industry, outperforming 43.08% of the companies in the same industry.
In the last couple of years the Operating Margin of BDN has remained more or less at the same level.
The Gross Margin of BDN (62.94%) is worse than 64.62% of its industry peers.
In the last couple of years the Gross Margin of BDN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.24% | ||
| PM (TTM) | N/A | ||
| GM | 62.94% |
OM growth 3Y1.22%
OM growth 5Y-0.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.85%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BDN is destroying value.
The number of shares outstanding for BDN has been increased compared to 1 year ago.
Compared to 5 years ago, BDN has less shares outstanding
BDN has a worse debt/assets ratio than last year.
2.2 Solvency
BDN has an Altman-Z score of -0.42. This is a bad value and indicates that BDN is not financially healthy and even has some risk of bankruptcy.
BDN's Altman-Z score of -0.42 is on the low side compared to the rest of the industry. BDN is outperformed by 86.92% of its industry peers.
The Debt to FCF ratio of BDN is 43.08, which is on the high side as it means it would take BDN, 43.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 43.08, BDN is in line with its industry, outperforming 58.46% of the companies in the same industry.
BDN has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.13, BDN is not doing good in the industry: 76.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 43.08 | ||
| Altman-Z | -0.42 |
ROIC/WACC0.31
WACC7.4%
2.3 Liquidity
BDN has a Current Ratio of 1.60. This is a normal value and indicates that BDN is financially healthy and should not expect problems in meeting its short term obligations.
BDN's Current ratio of 1.60 is fine compared to the rest of the industry. BDN outperforms 67.69% of its industry peers.
BDN has a Quick Ratio of 1.60. This is a normal value and indicates that BDN is financially healthy and should not expect problems in meeting its short term obligations.
BDN has a better Quick ratio (1.60) than 68.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
BDN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.23%, which is quite impressive.
The Revenue has decreased by -2.23% in the past year.
BDN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.72% yearly.
EPS 1Y (TTM)26.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%240%
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y1.27%
Revenue growth 5Y-2.72%
Sales Q2Q%-3.92%
3.2 Future
The Earnings Per Share is expected to grow by 19.71% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.05% on average over the next years.
EPS Next Y46.18%
EPS Next 2Y19.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.74%
Revenue Next 2Y0.87%
Revenue Next 3Y3.57%
Revenue Next 5Y2.05%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for BDN. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for BDN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
79.23% of the companies in the same industry are more expensive than BDN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BDN is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 10.26 |
4.3 Compensation for Growth
A more expensive valuation may be justified as BDN's earnings are expected to grow with 19.71% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.71%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.04%, BDN is a good candidate for dividend investing.
The stock price of BDN dropped by -26.05% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
BDN's Dividend Yield is rather good when compared to the industry average which is at 16.33. BDN pays more dividend than 95.38% of the companies in the same industry.
BDN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.04% |
5.2 History
The dividend of BDN decreases each year by -4.40%.
BDN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-4.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BDN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-53.01%
EPS Next 2Y19.71%
EPS Next 3YN/A
4.06
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.27%
Inst Owner Change0.17%
Ins Owners2.68%
Ins Owner Change14.95%
Market Cap702.54M
Analysts68
Price Target5 (23.15%)
Short Float %7.83%
Short Ratio5.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.04% |
Yearly Dividend0.61
Dividend Growth(5Y)-4.4%
DP-53.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1127.3%
Min EPS beat(2)-2000.99%
Max EPS beat(2)-253.61%
EPS beat(4)1
Avg EPS beat(4)-499.81%
Min EPS beat(4)-2000.99%
Max EPS beat(4)257.79%
EPS beat(8)2
Avg EPS beat(8)-448.49%
EPS beat(12)6
Avg EPS beat(12)30.88%
EPS beat(16)8
Avg EPS beat(16)67.32%
Revenue beat(2)0
Avg Revenue beat(2)-2.66%
Min Revenue beat(2)-3.27%
Max Revenue beat(2)-2.06%
Revenue beat(4)0
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)-1.35%
Revenue beat(8)1
Avg Revenue beat(8)-1.88%
Revenue beat(12)2
Avg Revenue beat(12)-0.88%
Revenue beat(16)3
Avg Revenue beat(16)-0.92%
PT rev (1m)-5.77%
PT rev (3m)-9.26%
EPS NQ rev (1m)-1.93%
EPS NQ rev (3m)-47.22%
EPS NY rev (1m)0.82%
EPS NY rev (3m)-48.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.7%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.39 | ||
| P/FCF | 13.68 | ||
| P/OCF | 3.88 | ||
| P/B | 0.68 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 10.26 |
EPS(TTM)-0.9
EYN/A
EPS(NY)-0.65
Fwd EYN/A
FCF(TTM)0.3
FCFY7.31%
OCF(TTM)1.05
OCFY25.78%
SpS2.92
BVpS6
TBVpS5.97
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.64% | ||
| ROE | -18.98% | ||
| ROCE | 2.94% | ||
| ROIC | 2.32% | ||
| ROICexc | 2.38% | ||
| ROICexgc | 2.48% | ||
| OM | 19.24% | ||
| PM (TTM) | N/A | ||
| GM | 62.94% | ||
| FCFM | 10.16% |
ROA(3y)-3.18%
ROA(5y)-0.28%
ROE(3y)-10.22%
ROE(5y)-2.59%
ROIC(3y)2.23%
ROIC(5y)2.2%
ROICexc(3y)2.26%
ROICexc(5y)2.23%
ROICexgc(3y)2.33%
ROICexgc(5y)2.32%
ROCE(3y)2.82%
ROCE(5y)2.78%
ROICexcg growth 3Y6.19%
ROICexcg growth 5Y0.16%
ROICexc growth 3Y6.48%
ROICexc growth 5Y0.48%
OM growth 3Y1.22%
OM growth 5Y-0.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.85%
GM growth 5Y0.61%
F-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 43.08 | ||
| Debt/EBITDA | 8.03 | ||
| Cap/Depr | 72.83% | ||
| Cap/Sales | 25.67% | ||
| Interest Coverage | 0.74 | ||
| Cash Conversion | 65.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | -0.42 |
F-Score4
WACC7.4%
ROIC/WACC0.31
Cap/Depr(3y)103.18%
Cap/Depr(5y)98.55%
Cap/Sales(3y)36.74%
Cap/Sales(5y)35.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%240%
EPS Next Y46.18%
EPS Next 2Y19.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y1.27%
Revenue growth 5Y-2.72%
Sales Q2Q%-3.92%
Revenue Next Year-1.74%
Revenue Next 2Y0.87%
Revenue Next 3Y3.57%
Revenue Next 5Y2.05%
EBIT growth 1Y-3.89%
EBIT growth 3Y2.5%
EBIT growth 5Y-2.86%
EBIT Next Year172.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y293.12%
FCF growth 3Y-2.72%
FCF growth 5Y7.43%
OCF growth 1Y2.17%
OCF growth 3Y-1.74%
OCF growth 5Y-5.01%