BRANDYWINE REALTY TRUST (BDN) Stock Fundamental Analysis
NYSE:BDN - New York Stock Exchange, Inc. - US1053682035 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to BDN. BDN was compared to 130 industry peers in the Diversified REITs industry. BDN has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
BDN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BDN's Return On Assets of -6.07% is on the low side compared to the rest of the industry. BDN is outperformed by 88.46% of its industry peers.
Looking at the Return On Equity, with a value of -20.91%, BDN is doing worse than 86.92% of the companies in the same industry.
The Return On Invested Capital of BDN (2.10%) is worse than 64.62% of its industry peers.
BDN had an Average Return On Invested Capital over the past 3 years of 2.23%. This is in line with the industry average of 3.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.07% | ||
| ROE | -20.91% | ||
| ROIC | 2.1% |
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
BDN's Operating Margin of 17.26% is on the low side compared to the rest of the industry. BDN is outperformed by 60.77% of its industry peers.
BDN's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 62.54%, BDN is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
BDN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.26% | ||
| PM (TTM) | N/A | ||
| GM | 62.54% |
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
BDN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BDN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BDN has less shares outstanding
The debt/assets ratio for BDN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.47, we must say that BDN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.47, BDN is doing worse than 87.69% of the companies in the same industry.
BDN has a debt to FCF ratio of 78.03. This is a negative value and a sign of low solvency as BDN would need 78.03 years to pay back of all of its debts.
BDN has a Debt to FCF ratio of 78.03. This is in the better half of the industry: BDN outperforms 61.54% of its industry peers.
A Debt/Equity ratio of 2.23 is on the high side and indicates that BDN has dependencies on debt financing.
BDN's Debt to Equity ratio of 2.23 is on the low side compared to the rest of the industry. BDN is outperformed by 77.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.23 | ||
| Debt/FCF | 78.03 | ||
| Altman-Z | -0.47 |
ROIC/WACC0.28
WACC7.42%
2.3 Liquidity
A Current Ratio of 1.36 indicates that BDN should not have too much problems paying its short term obligations.
The Current ratio of BDN (1.36) is better than 67.69% of its industry peers.
A Quick Ratio of 1.36 indicates that BDN should not have too much problems paying its short term obligations.
BDN's Quick ratio of 1.36 is fine compared to the rest of the industry. BDN outperforms 68.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
BDN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
Looking at the last year, BDN shows a decrease in Revenue. The Revenue has decreased by -2.23% in the last year.
The Revenue has been decreasing by -2.72% on average over the past years.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-80%
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y1.27%
Revenue growth 5Y-2.72%
Sales Q2Q%-3.93%
3.2 Future
Based on estimates for the next years, BDN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.79% on average per year.
The Revenue is expected to grow by 1.17% on average over the next years.
EPS Next Y53.49%
EPS Next 2Y24.78%
EPS Next 3Y14.79%
EPS Next 5YN/A
Revenue Next Year0.02%
Revenue Next 2Y0.08%
Revenue Next 3Y-1.37%
Revenue Next 5Y1.17%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Enterprise Value to EBITDA ratio, BDN is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
BDN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BDN is cheaper than 75.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.1 | ||
| EV/EBITDA | 11.09 |
4.3 Compensation for Growth
A more expensive valuation may be justified as BDN's earnings are expected to grow with 14.79% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.78%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
BDN has a Yearly Dividend Yield of 13.95%, which is a nice return.
Compared to an average industry Dividend Yield of 6.44, BDN pays a better dividend. On top of this BDN pays more dividend than 97.69% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BDN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.95% |
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-50.39%
EPS Next 2Y24.78%
EPS Next 3Y14.79%
4.28
-0.07 (-1.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.25%
Inst Owner Change0%
Ins Owners3.1%
Ins Owner Change17.05%
Market Cap740.65M
Analysts68
Price Target4.9 (14.49%)
Short Float %7.66%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.95% |
Yearly Dividend0.61
Dividend Growth(5Y)-4.4%
DP-50.39%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-127.24%
Min EPS beat(2)-253.61%
Max EPS beat(2)-0.88%
EPS beat(4)1
Avg EPS beat(4)-499.42%
Min EPS beat(4)-2000.99%
Max EPS beat(4)257.79%
EPS beat(8)1
Avg EPS beat(8)-449.49%
EPS beat(12)5
Avg EPS beat(12)-10.37%
EPS beat(16)7
Avg EPS beat(16)55.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-3.27%
Max Revenue beat(2)-0.32%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)-0.32%
Revenue beat(8)0
Avg Revenue beat(8)-1.98%
Revenue beat(12)1
Avg Revenue beat(12)-1.33%
Revenue beat(16)3
Avg Revenue beat(16)-0.75%
PT rev (1m)0%
PT rev (3m)-4%
EPS NQ rev (1m)-30%
EPS NQ rev (3m)22%
EPS NY rev (1m)13.58%
EPS NY rev (3m)14.29%
Revenue NQ rev (1m)-1.58%
Revenue NQ rev (3m)-2.46%
Revenue NY rev (1m)1.1%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.48 | ||
| P/FCF | 26.1 | ||
| P/OCF | 4.53 | ||
| P/B | 0.75 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 11.09 |
EPS(TTM)-1.22
EYN/A
EPS(NY)-0.5
Fwd EYN/A
FCF(TTM)0.16
FCFY3.83%
OCF(TTM)0.95
OCFY22.09%
SpS2.89
BVpS5.74
TBVpS5.71
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.07% | ||
| ROE | -20.91% | ||
| ROCE | 2.65% | ||
| ROIC | 2.1% | ||
| ROICexc | 2.12% | ||
| ROICexgc | 2.2% | ||
| OM | 17.26% | ||
| PM (TTM) | N/A | ||
| GM | 62.54% | ||
| FCFM | 5.67% |
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-Score3
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.23 | ||
| Debt/FCF | 78.03 | ||
| Debt/EBITDA | 8.39 | ||
| Cap/Depr | 76.21% | ||
| Cap/Sales | 27.02% | ||
| Interest Coverage | 0.65 | ||
| Cash Conversion | 62.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | -0.47 |
F-Score3
WACC7.42%
ROIC/WACC0.28
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)0%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-80%
EPS Next Y53.49%
EPS Next 2Y24.78%
EPS Next 3Y14.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y1.27%
Revenue growth 5Y-2.72%
Sales Q2Q%-3.93%
Revenue Next Year0.02%
Revenue Next 2Y0.08%
Revenue Next 3Y-1.37%
Revenue Next 5Y1.17%
EBIT growth 1Y-14.27%
EBIT growth 3Y2.5%
EBIT growth 5Y-2.86%
EBIT Next Year172.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y189.81%
FCF growth 3Y-2.72%
FCF growth 5Y7.43%
OCF growth 1Y-12.12%
OCF growth 3Y-1.74%
OCF growth 5Y-5.01%