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Broadmark Realty Capital Inc (BRMK) Stock Fundamental Analysis

NYSE:BRMK - New York Stock Exchange, Inc. - US11135B1008 - REIT - Currency: USD

4.82  -0.13 (-2.63%)

After market: 4.88 +0.06 (+1.24%)

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 is valued correctly, 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.
Of the past 5 years BRMK 4 years were profitable.
Of the past 5 years BRMK 4 years had a positive operating cash flow.
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.
With a decent Return On Invested Capital value of 2.21%, BRMK is doing good in the industry, outperforming 74.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BRMK is above the industry average of 1.34%.
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

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.
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

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.
The Altman-Z score of BRMK (3.00) is better 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.
With an excellent Debt to FCF ratio value of 2.62, BRMK belongs to the best of the industry, outperforming 98.48% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that BRMK is not too dependend on debt financing.
BRMK's Debt to Equity ratio of 0.11 is amongst the best of the industry. BRMK outperforms 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.
BRMK's Current ratio of 2.37 is amongst the best of 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.
Looking at the Quick 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.
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

The earnings per share for BRMK have decreased strongly by -28.99% in the last year.
BRMK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.26%.
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

BRMK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.78% yearly.
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

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.
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

The Price/Earnings ratio is 9.84, which indicates a very decent valuation of BRMK.
BRMK's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BRMK to the average of the S&P500 Index (26.73), we can say BRMK is valued rather cheaply.
The Price/Forward Earnings ratio is 9.84, which indicates a very decent valuation of BRMK.
65.15% of the companies in the same industry are cheaper than BRMK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.61, 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

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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRMK is on the same level as its industry peers.
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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3

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 10.69, 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 2.39.
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