Broadmark Realty Capital Inc (BRMK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRMK - US11135B1008 - REIT
4.82 USD
-0.13 (-2.63%)
4.88 USD
+0.06 (+1.24%)
Taking everything into account, BRMK scores 4 out of 10 in our fundamental rating. BRMK was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. No worries on liquidiy or solvency for BRMK as it has an excellent financial health rating, but there are worries on the profitability. BRMK has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
1.2 Ratios
- BRMK has negative profitability rations, so we won't be analyzing them here.
- Looking at the Return On Invested Capital, with a value of 2.21%, BRMK is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BRMK is above the industry average of 1.28%.
| 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
- 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.
- BRMK's Operating Margin has declined in the last couple of years.
- The Profit Margin and Gross Margin are not available for BRMK so they could not be analyzed.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BRMK is destroying value.
- The number of shares outstanding for BRMK has been reduced compared to 1 year ago.
- Compared to 1 year ago, BRMK has a worse debt to assets ratio.
2.2 Solvency
- BRMK has an Altman-Z score of 3.00. This indicates that BRMK is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.00, BRMK belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
- 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's Debt to FCF ratio of 2.62 is amongst the best of 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
- 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.
- A Quick Ratio of 2.37 indicates that BRMK has no problem at all paying its short term obligations.
- BRMK has a better Quick ratio (2.37) than 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 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.84 indicates a reasonable valuation of BRMK.
- The rest of the industry has a similar Price/Earnings ratio as BRMK.
- When comparing the Price/Earnings ratio of BRMK to the average of the S&P500 Index (27.21), we can say BRMK is valued rather cheaply.
- BRMK is valuated reasonably with a Price/Forward Earnings ratio of 9.84.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, BRMK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRMK indicates a rather cheap valuation: BRMK is cheaper than 93.94% of the companies listed in the same industry.
- BRMK's Price/Free Cash Flow is on the same level as the industry average.
| 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.
- With a Dividend Yield of 8.71, BRMK pays less dividend than the industry average, which is at 11.26. 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 1.81.
| 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
- The earnings of BRMK are negative and hence is the payout ratio. BRMK will probably not be able to sustain this dividend level.
DP-71.5%
EPS Next 2Y-4.78%
EPS Next 3YN/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.