BRANDYWINE REALTY TRUST (BDN) Stock Fundamental Analysis
NYSE:BDN - US1053682035 - REIT
4.26 USD
+0.04 (+0.95%)
4.26 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to BDN. BDN was compared to 129 industry peers in the Diversified REITs industry. While BDN seems to be doing ok healthwise, there are quite some concerns on its profitability. BDN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BDN has reported negative net income.
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.
In the past 5 years BDN always reported a positive cash flow from operatings.
1.2 Ratios
BDN's Return On Assets of -9.62% is on the low side compared to the rest of the industry. BDN is outperformed by 91.47% of its industry peers.
With a Return On Equity value of -37.13%, BDN is not doing good in the industry: 92.25% of the companies in the same industry are doing better.
BDN has a worse Return On Invested Capital (2.02%) than 62.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BDN is in line with the industry average of 3.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.62% | ||
| ROE | -37.13% | ||
| ROIC | 2.02% |
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 16.67% is on the low side compared to the rest of the industry. BDN is outperformed by 61.24% of its industry peers.
BDN's Operating Margin has been stable in the last couple of years.
BDN has a worse Gross Margin (62.37%) than 64.34% 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 | 16.67% | ||
| PM (TTM) | N/A | ||
| GM | 62.37% |
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
Based on the Altman-Z score of -0.50, 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 -0.50, BDN is doing worse than 87.60% of the companies in the same industry.
The Debt to FCF ratio of BDN is 197.76, which is on the high side as it means it would take BDN, 197.76 years of fcf income to pay off all of its debts.
BDN's Debt to FCF ratio of 197.76 is in line compared to the rest of the industry. BDN outperforms 57.36% of its industry peers.
A Debt/Equity ratio of 2.63 is on the high side and indicates that BDN has dependencies on debt financing.
BDN has a Debt to Equity ratio of 2.63. This is in the lower half of the industry: BDN underperforms 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 197.76 | ||
| Altman-Z | -0.5 |
ROIC/WACC0.27
WACC7.36%
2.3 Liquidity
A Current Ratio of 2.03 indicates that BDN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.03, BDN belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
A Quick Ratio of 2.03 indicates that BDN has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.03, BDN belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
BDN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -96.08%.
Looking at the last year, BDN shows a decrease in Revenue. The Revenue has decreased by -3.06% in the last year.
BDN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.72% yearly.
EPS 1Y (TTM)-96.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-401.18%
Revenue 1Y (TTM)-3.06%
Revenue growth 3Y1.27%
Revenue growth 5Y-2.72%
Sales Q2Q%-3.81%
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 Year-3.12%
Revenue Next 2Y-0.14%
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
BDN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
77.52% of the companies in the same industry are more expensive than BDN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as BDN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.28 | ||
| EV/EBITDA | 11.25 |
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 14.22%, which is a nice return.
Compared to an average industry Dividend Yield of 6.31, BDN pays a better dividend. On top of this BDN pays more dividend than 98.45% of the companies listed in the same industry.
BDN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.22% |
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
The earnings of BDN are negative and hence is the payout ratio. BDN will probably not be able to sustain this dividend level.
DP-32.12%
EPS Next 2Y24.78%
EPS Next 3Y14.79%
4.26
+0.04 (+0.95%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.4%
Inst Owner Change-0.8%
Ins Owners3.08%
Ins Owner Change12.75%
Market Cap739.96M
Analysts68
Price Target4.9 (15.02%)
Short Float %7.8%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.22% |
Yearly Dividend0.61
Dividend Growth(5Y)-4.4%
DP-32.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-145.41%
Min EPS beat(2)-289.95%
Max EPS beat(2)-0.88%
EPS beat(4)0
Avg EPS beat(4)-636.35%
Min EPS beat(4)-2000.99%
Max EPS beat(4)-0.88%
EPS beat(8)1
Avg EPS beat(8)-481.74%
EPS beat(12)4
Avg EPS beat(12)-50.95%
EPS beat(16)7
Avg EPS beat(16)45.2%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.32%
Max Revenue beat(2)0.54%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)0.54%
Revenue beat(8)1
Avg Revenue beat(8)-1.62%
Revenue beat(12)2
Avg Revenue beat(12)-1.24%
Revenue beat(16)4
Avg Revenue beat(16)-0.62%
PT rev (1m)0%
PT rev (3m)-2.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)0%
EPS NY rev (3m)13.58%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)-3.14%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.49 | ||
| P/FCF | 63.28 | ||
| P/OCF | 4.94 | ||
| P/B | 0.84 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 11.25 |
EPS(TTM)-1.9
EYN/A
EPS(NY)-0.5
Fwd EYN/A
FCF(TTM)0.07
FCFY1.58%
OCF(TTM)0.86
OCFY20.25%
SpS2.85
BVpS5.06
TBVpS5.04
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.62% | ||
| ROE | -37.13% | ||
| ROCE | 2.55% | ||
| ROIC | 2.02% | ||
| ROICexc | 2.1% | ||
| ROICexgc | 2.18% | ||
| OM | 16.67% | ||
| PM (TTM) | N/A | ||
| GM | 62.37% | ||
| FCFM | 2.36% |
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 Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 197.76 | ||
| Debt/EBITDA | 8.9 | ||
| Cap/Depr | 78.04% | ||
| Cap/Sales | 27.87% | ||
| Interest Coverage | 0.64 | ||
| Cash Conversion | 57.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | -0.5 |
F-Score4
WACC7.36%
ROIC/WACC0.27
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)-96.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-401.18%
EPS Next Y53.49%
EPS Next 2Y24.78%
EPS Next 3Y14.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.06%
Revenue growth 3Y1.27%
Revenue growth 5Y-2.72%
Sales Q2Q%-3.81%
Revenue Next Year-3.12%
Revenue Next 2Y-0.14%
Revenue Next 3Y-1.37%
Revenue Next 5Y1.17%
EBIT growth 1Y-19.92%
EBIT growth 3Y2.5%
EBIT growth 5Y-2.86%
EBIT Next Year172.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-54.5%
FCF growth 3Y-2.72%
FCF growth 5Y7.43%
OCF growth 1Y-21.99%
OCF growth 3Y-1.74%
OCF growth 5Y-5.01%