BRIGHTSPIRE CAPITAL INC (BRSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRSP - US10949T1097 - REIT
5.91 USD
-0.08 (-1.34%)
5.91 USD
0 (0%)
Taking everything into account, BRSP scores 4 out of 10 in our fundamental rating. BRSP was compared to 68 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.
- BRSP had a positive operating cash flow in the past year.
- In the past 5 years BRSP reported 4 times negative net income.
- BRSP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- BRSP's Return On Assets of -1.15% is on the low side compared to the rest of the industry. BRSP is outperformed by 77.94% of its industry peers.
- Looking at the Return On Equity, with a value of -3.88%, BRSP is doing worse than 73.53% of the companies in the same industry.
- BRSP has a better Return On Invested Capital (3.89%) than 94.12% 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 1.28%.
- The 3 year average ROIC (3.24%) for BRSP is below the current ROIC(3.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.15% | ||
| ROE | -3.88% | ||
| ROIC | 3.89% |
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
- With an excellent Operating Margin value of 47.34%, BRSP belongs to the best of the industry, outperforming 89.71% of the companies in the same industry.
- In the last couple of years the Operating Margin of BRSP has grown nicely.
- The Gross Margin of BRSP (83.39%) is better than 94.12% of its industry peers.
- In the last couple of years the Gross Margin of BRSP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.34% | ||
| PM (TTM) | N/A | ||
| GM | 83.39% |
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.
- BRSP has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for BRSP has been increased compared to 5 years ago.
- Compared to 1 year ago, BRSP has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -0.34, we must say that BRSP is in the distress zone and has some risk of bankruptcy.
- BRSP has a Altman-Z score (-0.34) which is in line with its industry peers.
- BRSP has a debt to FCF ratio of 26.31. This is a negative value and a sign of low solvency as BRSP would need 26.31 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 26.31, BRSP belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
- BRSP has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
- With a decent Debt to Equity ratio value of 2.22, BRSP is doing good in the industry, outperforming 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 26.31 | ||
| Altman-Z | -0.34 |
ROIC/WACC0.6
WACC6.47%
2.3 Liquidity
- BRSP has a Current Ratio of 1.15. This is a normal value and indicates that BRSP is financially healthy and should not expect problems in meeting its short term obligations.
- BRSP's Current ratio of 1.15 is amongst the best of the industry. BRSP outperforms 88.24% of its industry peers.
- A Quick Ratio of 1.15 indicates that BRSP should not have too much problems paying its short term obligations.
- The Quick ratio of BRSP (1.15) is better than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
- BRSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.66%.
- 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 -13.35%.
- The Revenue has been decreasing by -8.29% on average over the past years.
EPS 1Y (TTM)-27.66%
EPS 3Y25.01%
EPS 5Y37.65%
EPS Q2Q%-23.81%
Revenue 1Y (TTM)-13.35%
Revenue growth 3Y-0.36%
Revenue growth 5Y-8.29%
Sales Q2Q%-15.44%
3.2 Future
- The Earnings Per Share is expected to decrease by -7.28% on average over the next years.
- Based on estimates for the next years, BRSP will show a decrease in Revenue. The Revenue will decrease by -1.94% on average per year.
EPS Next Y-17.91%
EPS Next 2Y-7.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-27.56%
Revenue Next 2Y-10.73%
Revenue Next 3Y-1.94%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.69, the valuation of BRSP can be described as very reasonable.
- Based on the Price/Earnings ratio, BRSP is valued a bit cheaper than 76.47% of the companies in the same industry.
- BRSP is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 8.18, the valuation of BRSP can be described as very reasonable.
- 69.12% of the companies in the same industry are more expensive than BRSP, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. BRSP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BRSP is valued cheaper than 97.06% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRSP indicates a somewhat cheap valuation: BRSP is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.29 | ||
| EV/EBITDA | 14.57 |
4.3 Compensation for Growth
- BRSP's earnings are expected to decrease with -7.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-7.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 10.68%, BRSP is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 11.30, BRSP has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, BRSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.68% |
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
- BRSP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The Dividend Rate of BRSP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-219.36%
EPS Next 2Y-7.28%
EPS Next 3YN/A
BRIGHTSPIRE CAPITAL INC / BRSP FAQ
What is the fundamental rating for BRSP stock?
ChartMill assigns a fundamental rating of 4 / 10 to BRSP.
What is the valuation status for BRSP stock?
ChartMill assigns a valuation rating of 6 / 10 to BRIGHTSPIRE CAPITAL INC (BRSP). This can be considered as Fairly Valued.
What is the profitability of BRSP stock?
BRIGHTSPIRE CAPITAL INC (BRSP) has a profitability rating of 5 / 10.
What is the valuation of BRIGHTSPIRE CAPITAL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BRIGHTSPIRE CAPITAL INC (BRSP) is 8.69 and the Price/Book (PB) ratio is 0.79.
What is the financial health of BRIGHTSPIRE CAPITAL INC (BRSP) stock?
The financial health rating of BRIGHTSPIRE CAPITAL INC (BRSP) is 5 / 10.