BRIGHTSPIRE CAPITAL INC (BRSP) Stock Fundamental Analysis
NYSE:BRSP - New York Stock Exchange, Inc. - US10949T1097 - REIT - Currency: USD
Taking everything into account, BRSP scores 4 out of 10 in our fundamental rating. BRSP was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. BRSP has a medium profitability rating, but doesn't score so well on its financial health evaluation. BRSP is valued correctly, but it does not seem to be growing.
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.
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
The Return On Assets of BRSP (-1.96%) is worse than 80.00% of its industry peers.
With a Return On Equity value of -6.72%, BRSP is not doing good in the industry: 78.46% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.83%, BRSP belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
BRSP had an Average Return On Invested Capital over the past 3 years of 3.24%. This is in line with the industry average of 1.42%.
The last Return On Invested Capital (3.83%) for BRSP is above the 3 year average (3.24%), which is a sign of increasing profitability.
| 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 has a Operating Margin of 45.08%. This is amongst the best in the industry. BRSP outperforms 89.23% of its industry peers.
In the last couple of years the Operating Margin of BRSP has grown nicely.
BRSP has a better Gross Margin (90.10%) than 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.
Compared to 1 year ago, BRSP has less shares outstanding
Compared to 5 years ago, BRSP has more shares outstanding
BRSP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.36, we must say that BRSP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BRSP (-0.36) is worse than 60.00% of its industry peers.
The Debt to FCF ratio of BRSP is 26.24, which is on the high side as it means it would take BRSP, 26.24 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 26.24, BRSP belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
BRSP has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BRSP (2.03) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 26.24 | ||
| Altman-Z | -0.36 |
ROIC/WACC0.51
WACC7.46%
2.3 Liquidity
A Current Ratio of 0.69 indicates that BRSP may have some problems paying its short term obligations.
BRSP has a better Current ratio (0.69) than 69.23% of its industry peers.
A Quick Ratio of 0.69 indicates that BRSP may have some problems paying its short term obligations.
BRSP has a Quick ratio of 0.69. This is in the better half of the industry: BRSP outperforms 69.23% 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%.
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 -15.12%.
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)-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
The Earnings Per Share is expected to decrease by -6.76% on average over the next years.
BRSP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.38% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.65 indicates a rather cheap valuation of BRSP.
Based on the Price/Earnings ratio, BRSP is valued cheaper than 86.15% of the companies in the same industry.
When comparing the Price/Earnings ratio of BRSP to the average of the S&P500 Index (26.34), we can say BRSP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.01, the valuation of BRSP can be described as very cheap.
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 (22.19), we can say BRSP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 7.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRSP is valued 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 | 7.48 | ||
| EV/EBITDA | 14.49 |
4.3 Compensation for Growth
BRSP's earnings are expected to decrease with -6.76% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-6.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRSP has a Yearly Dividend Yield of 11.96%, which is a nice return.
Compared to an average industry Dividend Yield of 12.22, BRSP pays a bit more dividend than 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 | 11.96% |
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-134.92%
EPS Next 2Y-6.76%
EPS Next 3YN/A
5.12
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners66.2%
Inst Owner Change5.69%
Ins Owners2.14%
Ins Owner Change14.09%
Market Cap667.96M
Analysts75.38
Price Target6.8 (32.81%)
Short Float %1.57%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.96% |
Yearly Dividend0.76
Dividend Growth(5Y)-14.79%
DP-134.92%
Div Incr Years0
Div Non Decr Years0
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)0%
PT rev (3m)-9.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-15.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 7.01 | ||
| P/S | 1.96 | ||
| P/FCF | 7.48 | ||
| P/OCF | 7.48 | ||
| P/B | 0.65 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 14.49 |
EPS(TTM)0.77
EY15.04%
EPS(NY)0.73
Fwd EY14.26%
FCF(TTM)0.68
FCFY13.37%
OCF(TTM)0.68
OCFY13.37%
SpS2.61
BVpS7.93
TBVpS7.67
PEG (NY)N/A
PEG (5Y)0.18
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 | -0.36 |
F-Score4
WACC7.46%
ROIC/WACC0.51
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%