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Broadmark Realty Capital Inc (BRMK) Stock Fundamental Analysis

USA - NYSE:BRMK - US11135B1008 - REIT

4.82 USD
-0.13 (-2.63%)
Last: 5/30/2023, 8:25:16 PM
4.88 USD
+0.06 (+1.24%)
After Hours: 5/30/2023, 8:25:16 PM
Fundamental Rating

4

BRMK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 67 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

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3

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.
BRMK had positive earnings in 4 of the past 5 years.
BRMK had a positive operating cash flow in 4 of the past 5 years.
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.
The Return On Invested Capital of BRMK (2.21%) is better than 74.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRMK is above the industry average of 1.28%.
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

Looking at the Operating Margin, with a value of 27.49%, BRMK is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
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 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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8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRMK is destroying value.
BRMK has less shares outstanding than it did 1 year ago.
BRMK has a worse debt/assets ratio than last year.
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

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.
BRMK's Altman-Z score of 3.00 is amongst the best of the industry. BRMK outperforms 98.48% of its industry peers.
BRMK has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as BRMK would need 2.62 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.62, BRMK belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
BRMK has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BRMK (0.11) is better than 83.33% of its industry peers.
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

A Current Ratio of 2.37 indicates that BRMK has no problem at all paying 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 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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1

3. Growth

3.1 Past

BRMK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.99%.
BRMK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.26%.
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.
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.
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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4

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.
BRMK's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BRMK to the average of the S&P500 Index (27.06), we can say BRMK is valued rather cheaply.
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.
When comparing the Price/Forward Earnings ratio of BRMK to the average of the S&P500 Index (22.64), we can say BRMK is valued rather cheaply.
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 ratio is in line with 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

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

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 8.71%, BRMK is a good candidate for dividend investing.
With a Dividend Yield of 8.71, BRMK pays less dividend than the industry average, which is at 10.94. 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 2.38.
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

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
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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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 2023-05-09/amc
Earnings (Next)08-07 2023-08-07/bmo
Inst Owners0.19%
Inst Owner Change0%
Ins Owners1.11%
Ins Owner Change0%
Market Cap635.03M
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
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
ROICexcg growth 3Y-33.36%
ROICexcg 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