BRIGHTSPIRE CAPITAL INC (BRSP) Stock Fundamental Analysis
NYSE:BRSP - New York Stock Exchange, Inc. - US10949T1097 - REIT - Currency: USD
Overall BRSP gets a fundamental rating of 4 out of 10. We evaluated BRSP against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. BRSP has an average financial health and profitability rating. BRSP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BRSP was profitable.
In the past year BRSP had a positive cash flow from operations.
In the past 5 years BRSP reported 4 times negative net income.
Of the past 5 years BRSP 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.96%, BRSP is doing worse than 78.46% of the companies in the same industry.
BRSP has a Return On Equity of -6.72%. This is in the lower half of the industry: BRSP underperforms 70.77% of its industry peers.
With an excellent Return On Invested Capital value of 3.83%, BRSP belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BRSP is in line with the industry average of 1.68%.
The 3 year average ROIC (3.24%) for BRSP is below the current ROIC(3.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.96% | ||
| ROE | -6.72% | ||
| ROIC | 3.83% |
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
BRSP's Operating Margin of 45.08% is amongst the best of the industry. BRSP outperforms 90.77% of its industry peers.
In the last couple of years the Operating Margin of BRSP has grown nicely.
BRSP has a Gross Margin of 90.10%. This is amongst the best in the industry. BRSP outperforms 96.92% of its industry peers.
In the last couple of years the Gross Margin of BRSP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.08% | ||
| PM (TTM) | N/A | ||
| GM | 90.1% |
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
BRSP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BRSP has been reduced compared to 1 year ago.
The number of shares outstanding for BRSP has been increased compared to 5 years ago.
BRSP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.37, we must say that BRSP is in the distress zone and has some risk of bankruptcy.
BRSP's Altman-Z score of -0.37 is in line compared to the rest of the industry. BRSP outperforms 43.08% of its industry peers.
BRSP has a debt to FCF ratio of 26.24. This is a negative value and a sign of low solvency as BRSP would need 26.24 years to pay back of all of its debts.
BRSP's Debt to FCF ratio of 26.24 is amongst the best of the industry. BRSP outperforms 81.54% of its industry peers.
A Debt/Equity ratio of 2.03 is on the high side and indicates that BRSP has dependencies on debt financing.
BRSP has a better Debt to Equity ratio (2.03) than 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 26.24 | ||
| Altman-Z | -0.37 |
ROIC/WACC0.57
WACC6.68%
2.3 Liquidity
A Current Ratio of 0.69 indicates that BRSP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.69, BRSP belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that BRSP may have some problems paying its short term obligations.
The Quick ratio of BRSP (0.69) is better than 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
BRSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.96%.
BRSP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.65% yearly.
BRSP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.12%.
The Revenue has been decreasing by -8.29% on average over the past years.
EPS 1Y (TTM)-25.96%
EPS 3Y25.01%
EPS 5Y37.65%
EPS Q2Q%-30.43%
Revenue 1Y (TTM)-15.12%
Revenue growth 3Y-0.36%
Revenue growth 5Y-8.29%
Sales Q2Q%-42.13%
3.2 Future
Based on estimates for the next years, BRSP will show a decrease in Earnings Per Share. The EPS will decrease by -6.76% on average per year.
The Revenue is expected to decrease by -9.38% on average over the next years.
EPS Next Y-21.27%
EPS Next 2Y-6.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-26.79%
Revenue Next 2Y-9.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.58, the valuation of BRSP can be described as very cheap.
Based on the Price/Earnings ratio, BRSP is valued cheaper than 87.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of BRSP to the average of the S&P500 Index (26.17), we can say BRSP is valued rather cheaply.
The Price/Forward Earnings ratio is 6.94, which indicates a rather cheap valuation of BRSP.
78.46% of the companies in the same industry are more expensive than BRSP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BRSP to the average of the S&P500 Index (22.10), we can say BRSP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
BRSP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BRSP is cheaper than 96.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BRSP is valued a bit cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.4 | ||
| EV/EBITDA | 14.45 |
4.3 Compensation for Growth
A cheap valuation may be justified as BRSP's earnings are expected to decrease with -6.76% in the coming years.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-6.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.83%, BRSP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 14.38, BRSP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, BRSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.83% |
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.
BRSP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-14.79%
Div Incr Years3
Div Non Decr Years3
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-134.92%
EPS Next 2Y-6.76%
EPS Next 3YN/A
5.07
-0.01 (-0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners65.21%
Inst Owner Change5.69%
Ins Owners1.86%
Ins Owner Change14.09%
Market Cap661.43M
Analysts75.38
Price Target6.8 (34.12%)
Short Float %1.38%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.83% |
Yearly Dividend0.76
Dividend Growth(5Y)-14.79%
DP-134.92%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.58%
Min EPS beat(2)-4.52%
Max EPS beat(2)-2.64%
EPS beat(4)1
Avg EPS beat(4)-0.56%
Min EPS beat(4)-4.52%
Max EPS beat(4)5.58%
EPS beat(8)5
Avg EPS beat(8)8.63%
EPS beat(12)8
Avg EPS beat(12)7.09%
EPS beat(16)10
Avg EPS beat(16)-6.92%
Revenue beat(2)0
Avg Revenue beat(2)-12.26%
Min Revenue beat(2)-12.93%
Max Revenue beat(2)-11.59%
Revenue beat(4)0
Avg Revenue beat(4)-11.8%
Min Revenue beat(4)-15.28%
Max Revenue beat(4)-7.39%
Revenue beat(8)2
Avg Revenue beat(8)-6.8%
Revenue beat(12)5
Avg Revenue beat(12)52.02%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-9.6%
PT rev (3m)-9.6%
EPS NQ rev (1m)-7.64%
EPS NQ rev (3m)-15.56%
EPS NY rev (1m)-8.5%
EPS NY rev (3m)-15.39%
Revenue NQ rev (1m)-5.27%
Revenue NQ rev (3m)-11.93%
Revenue NY rev (1m)-7.78%
Revenue NY rev (3m)-16.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 6.94 | ||
| P/S | 1.94 | ||
| P/FCF | 7.4 | ||
| P/OCF | 7.4 | ||
| P/B | 0.64 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 14.45 |
EPS(TTM)0.77
EY15.19%
EPS(NY)0.73
Fwd EY14.4%
FCF(TTM)0.68
FCFY13.51%
OCF(TTM)0.68
OCFY13.51%
SpS2.61
BVpS7.93
TBVpS7.67
PEG (NY)N/A
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.96% | ||
| ROE | -6.72% | ||
| ROCE | 4.85% | ||
| ROIC | 3.83% | ||
| ROICexc | 4.09% | ||
| ROICexgc | 4.22% | ||
| OM | 45.08% | ||
| PM (TTM) | N/A | ||
| GM | 90.1% | ||
| FCFM | 26.25% |
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-Score4
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 26.24 | ||
| Debt/EBITDA | 10.81 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | -0.37 |
F-Score4
WACC6.68%
ROIC/WACC0.57
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)-25.96%
EPS 3Y25.01%
EPS 5Y37.65%
EPS Q2Q%-30.43%
EPS Next Y-21.27%
EPS Next 2Y-6.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.12%
Revenue growth 3Y-0.36%
Revenue growth 5Y-8.29%
Sales Q2Q%-42.13%
Revenue Next Year-26.79%
Revenue Next 2Y-9.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.12%
EBIT growth 3Y-28.49%
EBIT growth 5Y20.64%
EBIT Next Year1769.16%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-32.63%
FCF growth 3YN/A
FCF growth 5Y-5.5%
OCF growth 1Y-32.63%
OCF growth 3YN/A
OCF growth 5Y-5.5%