BRIGHTSPIRE CAPITAL INC (BRSP) Stock Fundamental Analysis
NYSE:BRSP - US10949T1097 - REIT
5.73 USD
+0.04 (+0.7%)
5.62 USD
-0.11 (-1.92%)
We assign a fundamental rating of 4 out of 10 to BRSP. BRSP was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. BRSP has only an average score on both its financial health and profitability. BRSP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BRSP had positive earnings in the past year.
In the past year BRSP had a positive cash flow from operations.
BRSP had negative earnings in 4 of the past 5 years.
BRSP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.73%, BRSP is doing worse than 74.63% of the companies in the same industry.
BRSP's Return On Equity of -2.49% is on the low side compared to the rest of the industry. BRSP is outperformed by 68.66% of its industry peers.
The Return On Invested Capital of BRSP (4.38%) is better than 94.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRSP is in line with the industry average of 1.32%.
The last Return On Invested Capital (4.38%) for BRSP is above the 3 year average (3.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.73% | ||
| ROE | -2.49% | ||
| ROIC | 4.38% |
ROA(3y)-0.98%
ROA(5y)-2.09%
ROE(3y)-3.5%
ROE(5y)-7.73%
ROIC(3y)3.24%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 52.74%, BRSP belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
In the last couple of years the Operating Margin of BRSP has grown nicely.
Looking at the Gross Margin, with a value of 87.15%, BRSP belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
BRSP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.74% | ||
| PM (TTM) | N/A | ||
| GM | 87.15% |
OM growth 3Y-28.23%
OM growth 5Y31.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.22%
GM growth 5Y5.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRSP is destroying value.
Compared to 1 year ago, BRSP has less shares outstanding
The number of shares outstanding for BRSP has been increased compared to 5 years ago.
The debt/assets ratio for BRSP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.33, we must say that BRSP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.33, BRSP perfoms like the industry average, outperforming 44.78% of the companies in the same industry.
BRSP has a debt to FCF ratio of 26.88. This is a negative value and a sign of low solvency as BRSP would need 26.88 years to pay back of all of its debts.
BRSP has a Debt to FCF ratio of 26.88. This is amongst the best in the industry. BRSP outperforms 85.07% of its industry peers.
A Debt/Equity ratio of 2.16 is on the high side and indicates that BRSP has dependencies on debt financing.
With an excellent Debt to Equity ratio value of 2.16, BRSP belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 26.88 | ||
| Altman-Z | -0.33 |
ROIC/WACC0.65
WACC6.69%
2.3 Liquidity
BRSP has a Current Ratio of 0.89. This is a bad value and indicates that BRSP is not financially healthy enough and could expect problems in meeting its short term obligations.
BRSP has a Current ratio of 0.89. This is in the better half of the industry: BRSP outperforms 67.16% of its industry peers.
A Quick Ratio of 0.89 indicates that BRSP may have some problems paying its short term obligations.
BRSP has a Quick ratio of 0.89. This is in the better half of the industry: BRSP outperforms 67.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for BRSP have decreased strongly by -27.72% in the last year.
The Earnings Per Share has been growing by 37.65% on average over the past years. This is a very strong growth
BRSP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.56%.
Measured over the past years, BRSP shows a decrease in Revenue. The Revenue has been decreasing by -8.29% on average per year.
EPS 1Y (TTM)-27.72%
EPS 3Y25.01%
EPS 5Y37.65%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)-15.56%
Revenue growth 3Y-0.36%
Revenue growth 5Y-8.29%
Sales Q2Q%-33.76%
3.2 Future
Based on estimates for the next years, BRSP will show a decrease in Earnings Per Share. The EPS will decrease by -7.94% on average per year.
The Revenue is expected to decrease by -13.66% on average over the next years. This is quite bad
EPS Next Y-20.67%
EPS Next 2Y-7.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-29.82%
Revenue Next 2Y-13.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.85, the valuation of BRSP can be described as very cheap.
BRSP's Price/Earnings ratio is rather cheap when compared to the industry. BRSP is cheaper than 83.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of BRSP to the average of the S&P500 Index (27.08), we can say BRSP is valued rather cheaply.
A Price/Forward Earnings ratio of 8.05 indicates a reasonable valuation of BRSP.
Based on the Price/Forward Earnings ratio, BRSP is valued a bit cheaper than 70.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BRSP to the average of the S&P500 Index (22.67), we can say BRSP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRSP is valued cheaply inside the industry as 98.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BRSP is valued a bit cheaper than 77.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.88 | ||
| EV/EBITDA | 13.1 |
4.3 Compensation for Growth
A cheap valuation may be justified as BRSP's earnings are expected to decrease with -7.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-7.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRSP has a Yearly Dividend Yield of 11.66%, which is a nice return.
Compared to an average industry Dividend Yield of 12.25, BRSP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, BRSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.66% |
5.2 History
The dividend of BRSP decreases each year by -14.79%.
BRSP has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-14.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of BRSP are negative and hence is the payout ratio. BRSP will probably not be able to sustain this dividend level.
BRSP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-357.33%
EPS Next 2Y-7.94%
EPS Next 3YN/A
5.73
+0.04 (+0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners66.68%
Inst Owner Change-1.99%
Ins Owners2.14%
Ins Owner Change14.09%
Market Cap744.84M
Analysts73.85
Price Target6.55 (14.31%)
Short Float %2.28%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.66% |
Yearly Dividend0.76
Dividend Growth(5Y)-14.79%
DP-357.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.41%
Min EPS beat(2)-4.52%
Max EPS beat(2)13.33%
EPS beat(4)2
Avg EPS beat(4)2.94%
Min EPS beat(4)-4.52%
Max EPS beat(4)13.33%
EPS beat(8)5
Avg EPS beat(8)9.85%
EPS beat(12)8
Avg EPS beat(12)8.15%
EPS beat(16)11
Avg EPS beat(16)7.66%
Revenue beat(2)0
Avg Revenue beat(2)-6.95%
Min Revenue beat(2)-11.59%
Max Revenue beat(2)-2.3%
Revenue beat(4)0
Avg Revenue beat(4)-10.53%
Min Revenue beat(4)-15.28%
Max Revenue beat(4)-2.3%
Revenue beat(8)2
Avg Revenue beat(8)-5.74%
Revenue beat(12)4
Avg Revenue beat(12)29.23%
Revenue beat(16)8
Avg Revenue beat(16)89.53%
PT rev (1m)1.32%
PT rev (3m)-3.75%
EPS NQ rev (1m)2.59%
EPS NQ rev (3m)-11.31%
EPS NY rev (1m)1.82%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)-5.9%
Revenue NQ rev (3m)-19.99%
Revenue NY rev (1m)-4.13%
Revenue NY rev (3m)-4.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 8.05 | ||
| P/S | 2.25 | ||
| P/FCF | 8.88 | ||
| P/OCF | 8.88 | ||
| P/B | 0.75 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 13.1 |
EPS(TTM)0.73
EY12.74%
EPS(NY)0.71
Fwd EY12.43%
FCF(TTM)0.65
FCFY11.26%
OCF(TTM)0.65
OCFY11.26%
SpS2.55
BVpS7.65
TBVpS7.46
PEG (NY)N/A
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.73% | ||
| ROE | -2.49% | ||
| ROCE | 5.54% | ||
| ROIC | 4.38% | ||
| ROICexc | 4.6% | ||
| ROICexgc | 4.73% | ||
| OM | 52.74% | ||
| PM (TTM) | N/A | ||
| GM | 87.15% | ||
| FCFM | 25.31% |
ROA(3y)-0.98%
ROA(5y)-2.09%
ROE(3y)-3.5%
ROE(5y)-7.73%
ROIC(3y)3.24%
ROIC(5y)N/A
ROICexc(3y)3.49%
ROICexc(5y)N/A
ROICexgc(3y)3.53%
ROICexgc(5y)N/A
ROCE(3y)4.1%
ROCE(5y)N/A
ROICexcg growth 3Y-14.53%
ROICexcg growth 5Y43.03%
ROICexc growth 3Y-14.56%
ROICexc growth 5Y43.06%
OM growth 3Y-28.23%
OM growth 5Y31.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.22%
GM growth 5Y5.19%
F-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 26.88 | ||
| Debt/EBITDA | 9.91 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | -0.33 |
F-Score5
WACC6.69%
ROIC/WACC0.65
Cap/Depr(3y)N/A
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)-27.72%
EPS 3Y25.01%
EPS 5Y37.65%
EPS Q2Q%-18.18%
EPS Next Y-20.67%
EPS Next 2Y-7.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.56%
Revenue growth 3Y-0.36%
Revenue growth 5Y-8.29%
Sales Q2Q%-33.76%
Revenue Next Year-29.82%
Revenue Next 2Y-13.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y42.85%
EBIT growth 3Y-28.49%
EBIT growth 5Y20.64%
EBIT Next Year1769.16%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-37.15%
FCF growth 3YN/A
FCF growth 5Y-5.5%
OCF growth 1Y-37.15%
OCF growth 3YN/A
OCF growth 5Y-5.5%