Broadmark Realty Capital Inc (BRMK)
US11135B1008 - REIT
We assign a fundamental rating of 4 out of 10 to BRMK. BRMK was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. BRMK has a great financial health rating, but its profitability evaluates not so good. BRMK has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BRMK was profitable.
In the past year BRMK had a positive cash flow from operations.
Of the past 5 years BRMK 4 years were profitable.
Of the past 5 years BRMK 4 years had a positive operating cash flow.
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.
Measured over the past 3 years, the Average Return On Invested Capital for BRMK is above the industry average of 1.58%.
| 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.
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
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.
2.2 Solvency
An Altman-Z score of 3.00 indicates that BRMK is not in any danger for 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.
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.
The Debt to FCF ratio of BRMK (2.62) is better than 98.48% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that BRMK is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.11, BRMK belongs to the best 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 better Current ratio (2.37) than 84.85% of its industry peers.
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 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.
Looking at the last year, BRMK shows a very negative growth in Revenue. The Revenue has decreased by -14.26% in the last year.
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 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
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
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.
4. Valuation
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.
When comparing the Price/Earnings ratio of BRMK to the average of the S&P500 Index (28.06), we can say BRMK is valued rather cheaply.
The Price/Forward Earnings ratio is 9.84, which indicates a very decent valuation of BRMK.
Based on the Price/Forward Earnings ratio, BRMK is valued a bit more expensive than 65.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.72, BRMK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
BRMK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BRMK is cheaper than 93.94% of the companies 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 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
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 13.21. 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 2.41, 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
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
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)
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Min Revenue beat(4)
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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