Broadmark Realty Capital Inc (BRMK) Fundamental Analysis & Valuation

NYSE:BRMK • US11135B1008

4.82 USD
-0.13 (-2.63%)
At close: May 30, 2023
4.88 USD
+0.06 (+1.24%)
After Hours: 5/30/2023, 8:25:16 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This BRMK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

BRMK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While BRMK has a great health rating, there are worries on its profitability. BRMK has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

2

1. BRMK Profitability Analysis

1.1 Basic Checks

  • BRMK had positive earnings in the past year.
  • In the past year BRMK had a positive cash flow from operations.
BRMK Yearly Net Income VS EBIT VS OCF VS FCFBRMK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 0 50M -50M 100M -100M

1.2 Ratios

  • The profitability ratios for BRMK are negative, so there is not much use analyzing them.
  • BRMK's Return On Invested Capital of 2.21% is fine compared to the rest of the industry. BRMK outperforms 74.24% of its industry peers.
  • BRMK had an Average Return On Invested Capital over the past 3 years of 4.91%. This is above the industry average of 1.22%.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC 2.21%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.91%
ROIC(5y)N/A
BRMK Yearly ROA, ROE, ROICBRMK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 0 5 -5 -10

1.3 Margins

  • BRMK has a Operating Margin of 27.49%. This is in the better half of the industry: BRMK outperforms 65.15% of its industry peers.
  • In the last couple of years the Operating Margin of BRMK has declined.
  • BRMK does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM 27.49%
PM (TTM) N/A
GM N/A
OM growth 3Y-24.81%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
BRMK Yearly Profit, Operating, Gross MarginsBRMK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 0 50 -50 -100

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. BRMK Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRMK is destroying value.
  • Compared to 1 year ago, BRMK has less shares outstanding
  • The debt/assets ratio for BRMK is higher compared to a year ago.
BRMK Yearly Shares OutstandingBRMK Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
BRMK Yearly Total Debt VS Total AssetsBRMK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

2.2 Solvency

  • An Altman-Z score of 3.00 indicates that BRMK is not in any danger for bankruptcy at the moment.
  • BRMK has a better Altman-Z score (3.00) than 98.48% of its industry peers.
  • The Debt to FCF ratio of BRMK is 2.62, which is a good value as it means it would take BRMK, 2.62 years of fcf income to pay off all of its debts.
  • BRMK has a Debt to FCF ratio of 2.62. This is amongst the best in the industry. BRMK outperforms 98.48% of its industry peers.
  • BRMK has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.11, BRMK belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 2.62
Altman-Z 3
ROIC/WACC0.28
WACC7.82%
BRMK Yearly LT Debt VS Equity VS FCFBRMK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • BRMK has a Current Ratio of 2.37. This indicates that BRMK is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.37, BRMK belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
  • BRMK has a Quick Ratio of 2.37. This indicates that BRMK is financially healthy and has no problem in meeting its short term obligations.
  • BRMK has a Quick ratio of 2.37. This is amongst the best in the industry. BRMK outperforms 84.85% of its industry peers.
Industry RankSector Rank
Current Ratio 2.37
Quick Ratio 2.37
BRMK Yearly Current Assets VS Current LiabilitesBRMK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 50M 100M 150M 200M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. BRMK Growth Analysis

3.1 Past

  • BRMK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.99%.
  • The Revenue for BRMK has decreased by -14.26% in the past year. This is quite bad
  • BRMK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.98% yearly.
EPS 1Y (TTM)-28.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-14.26%
Revenue growth 3Y-5.98%
Revenue growth 5YN/A
Sales Q2Q%-17.31%

3.2 Future

  • Based on estimates for the next years, BRMK will show a decrease in Earnings Per Share. The EPS will decrease by -4.78% on average per year.
  • Based on estimates for the next years, BRMK will show a small growth in Revenue. The Revenue will grow by 0.14% on average per year.
EPS Next Y-21.93%
EPS Next 2Y-4.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.18%
Revenue Next 2Y0.14%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
BRMK Yearly Revenue VS EstimatesBRMK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 50M 100M
BRMK Yearly EPS VS EstimatesBRMK Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

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Find the best growth stocksShow best growing peers

4

4. BRMK Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.84 indicates a reasonable valuation of BRMK.
  • BRMK's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.03. BRMK is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 9.84, which indicates a very decent valuation of BRMK.
  • BRMK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BRMK is more expensive than 65.15% of the companies in the same industry.
  • BRMK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.11.
Industry RankSector Rank
PE 9.84
Fwd PE 9.84
BRMK Price Earnings VS Forward Price EarningsBRMK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 93.94% of the companies in the same industry are more expensive than BRMK, based on the Enterprise Value to EBITDA ratio.
  • BRMK's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 17.01
EV/EBITDA 22.96
BRMK Per share dataBRMK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • A cheap valuation may be justified as BRMK's earnings are expected to decrease with -4.78% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.78%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. BRMK Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 8.71%, BRMK is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 11.29, BRMK's dividend is way lower than its industry peers. On top of this 83.33% of the companies listed in the same industry pay a better dividend than BRMK!
  • BRMK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 8.71%

5.2 History

  • BRMK has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
BRMK Yearly Dividends per shareBRMK Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8

5.3 Sustainability

  • BRMK has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-71.5%
EPS Next 2Y-4.78%
EPS Next 3YN/A
BRMK Yearly Income VS Free CF VS DividendBRMK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2018 2019 2020 2021 2022 0 50M -50M 100M -100M

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Find the best dividend stocksShow peers with best dividend

BRMK Fundamentals: All Metrics, Ratios and Statistics

Broadmark Realty Capital Inc

NYSE:BRMK (5/30/2023, 8:25:16 PM)

After market: 4.88 +0.06 (+1.24%)

4.82

-0.13 (-2.63%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)05-09
Earnings (Next)08-07
Inst Owners0.19%
Inst Owner Change0%
Ins Owners1.11%
Ins Owner Change0%
Market Cap635.03M
Revenue(TTM)103.70M
Net Income(TTM)-129.91M
Analysts47.5
Price Target5.1 (5.81%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 8.71%
Yearly Dividend0.81
Dividend Growth(5Y)N/A
DP-71.5%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.22%
Min EPS beat(2)-26.47%
Max EPS beat(2)-1.96%
EPS beat(4)0
Avg EPS beat(4)-11.91%
Min EPS beat(4)-26.47%
Max EPS beat(4)-1.96%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.75%
Min Revenue beat(2)-11.64%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-6.52%
Min Revenue beat(4)-11.64%
Max Revenue beat(4)-1.87%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-54.55%
EPS NQ rev (1m)-12.9%
EPS NQ rev (3m)-22.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.12%
Revenue NQ rev (1m)-5.76%
Revenue NQ rev (3m)-10.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.76%
Valuation
Industry RankSector Rank
PE 9.84
Fwd PE 9.84
P/S 6.12
P/FCF 17.01
P/OCF 14.57
P/B 0.69
P/tB 0.69
EV/EBITDA 22.96
EPS(TTM)0.49
EY10.17%
EPS(NY)0.49
Fwd EY10.16%
FCF(TTM)0.28
FCFY5.88%
OCF(TTM)0.33
OCFY6.86%
SpS0.79
BVpS6.98
TBVpS6.98
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC 2.21%
ROICexc 2.3%
ROICexgc 2.32%
OM 27.49%
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.91%
ROIC(5y)N/A
ROICexc(3y)5.69%
ROICexc(5y)N/A
ROICexgc(3y)6.47%
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-33.36%
ROICexgc growth 5YN/A
ROICexc growth 3Y-29.91%
ROICexc growth 5YN/A
OM growth 3Y-24.81%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 2.62
Debt/EBITDA 3.24
Cap/Depr 368.81%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.37
Quick Ratio 2.37
Altman-Z 3
F-Score3
WACC7.82%
ROIC/WACC0.28
Cap/Depr(3y)418.79%
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-28.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-33.33%
EPS Next Y-21.93%
EPS Next 2Y-4.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-14.26%
Revenue growth 3Y-5.98%
Revenue growth 5YN/A
Sales Q2Q%-17.31%
Revenue Next Year-9.18%
Revenue Next 2Y0.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-67.17%
EBIT growth 3Y-29.31%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-36.79%
FCF growth 3Y-14.83%
FCF growth 5YN/A
OCF growth 1Y-26.73%
OCF growth 3Y-16.17%
OCF growth 5YN/A

Broadmark Realty Capital Inc / BRMK FAQ

What is the fundamental rating for BRMK stock?

ChartMill assigns a fundamental rating of 4 / 10 to BRMK.


Can you provide the valuation status for Broadmark Realty Capital Inc?

ChartMill assigns a valuation rating of 4 / 10 to Broadmark Realty Capital Inc (BRMK). This can be considered as Fairly Valued.


How profitable is Broadmark Realty Capital Inc (BRMK) stock?

Broadmark Realty Capital Inc (BRMK) has a profitability rating of 1 / 10.


Can you provide the financial health for BRMK stock?

The financial health rating of Broadmark Realty Capital Inc (BRMK) is 8 / 10.


Can you provide the expected EPS growth for BRMK stock?

The Earnings per Share (EPS) of Broadmark Realty Capital Inc (BRMK) is expected to decline by -21.93% in the next year.