Broadmark Realty Capital Inc (BRMK)
US11135B1008 - REIT
Overall BRMK gets a fundamental rating of 4 out of 10. We evaluated BRMK against 64 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.
1. Profitability
1.1 Basic Checks
BRMK had positive earnings in the past year.
BRMK had a positive operating cash flow in the past year.
Of the past 5 years BRMK 4 years were profitable.
BRMK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The profitability ratios for BRMK are negative, so there is not much use analyzing them.
BRMK has a better Return On Invested Capital (2.21%) than 74.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRMK is above the industry average of 1.57%.
| Industry Rank | Sector 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
1.3 Margins
The Operating Margin of BRMK (27.49%) is better than 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 Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRMK is destroying value.
The number of shares outstanding for BRMK has been reduced compared to 1 year ago.
BRMK has a worse debt/assets ratio than last year.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 3 |
ROIC/WACC0.28
WACC7.82%
2.3 Liquidity
A Current Ratio of 2.37 indicates that BRMK has no problem at all paying its short term obligations.
BRMK has a Current ratio of 2.37. This is amongst the best in the industry. BRMK outperforms 84.85% of its industry peers.
A Quick Ratio of 2.37 indicates that BRMK has no problem at all paying its short term obligations.
BRMK's Quick ratio of 2.37 is amongst the best of the industry. BRMK outperforms 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
The earnings per share for BRMK have decreased strongly by -28.99% in the last year.
The Revenue for BRMK has decreased by -14.26% in the past year. This is quite bad
The Revenue has been decreasing by -5.98% on average over the past years.
EPS 1Y (TTM)-28.99%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-33.33%
Revenue 1Y (TTM)-14.26%
Revenue growth 3Y-5.98%
Revenue growth 5YN/A
Revenue growth Q2Q-17.31%
3.2 Future
The Earnings Per Share is expected to decrease by -4.78% on average over the next years.
The Revenue is expected to grow by 0.14% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.84, the valuation of BRMK can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BRMK is on the same level as its industry peers.
When comparing the Price/Earnings ratio of BRMK to the average of the S&P500 Index (24.92), we can say BRMK is valued rather cheaply.
The Price/Forward Earnings ratio is 9.84, which indicates a very decent valuation of BRMK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BRMK indicates a slightly more expensive valuation: BRMK is more expensive than 65.15% of the companies listed 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 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 9.84 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRMK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.01 | ||
| EV/EBITDA | 22.96 |
4.3 Compensation for Growth
BRMK's earnings are expected to decrease with -4.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRMK has a Yearly Dividend Yield of 8.71%, which is a nice return.
Compared to an average industry Dividend Yield of 13.26, 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!
Compared to an average S&P500 Dividend Yield of 2.43, BRMK pays a better dividend.
| Industry Rank | Sector 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
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
Broadmark Realty Capital Inc
NYSE:BRMK (5/30/2023, 7:25:16 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap635.03M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 9.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.49% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-28.99%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-21.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.26%
Revenue growth 3Y-5.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y