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 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
In the past year BRSP was profitable.
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 has a worse Return On Assets (-1.96%) than 77.61% of its industry peers.
BRSP has a Return On Equity of -6.72%. This is in the lower half of the industry: BRSP underperforms 76.12% of its industry peers.
The Return On Invested Capital of BRSP (3.83%) is better than 94.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRSP is in line with the industry average of 1.41%.
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
The Operating Margin of BRSP (45.08%) is better than 89.55% 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 97.01% of its industry peers.
BRSP's Gross Margin has improved in the last couple of years.
| 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
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
BRSP has an Altman-Z score of -0.36. This is a bad value and indicates that BRSP is not financially healthy and even has some risk of bankruptcy.
BRSP's Altman-Z score of -0.36 is in line compared to the rest of the industry. BRSP outperforms 41.79% 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.
BRSP's Debt to FCF ratio of 26.24 is amongst the best of the industry. BRSP outperforms 83.58% 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's Debt to Equity ratio of 2.03 is amongst the best of the industry. BRSP outperforms 80.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 26.24 | ||
| Altman-Z | -0.36 |
ROIC/WACC0.58
WACC6.61%
2.3 Liquidity
A Current Ratio of 0.69 indicates that BRSP may have some problems paying its short term obligations.
With a decent Current ratio value of 0.69, BRSP is doing good in the industry, outperforming 70.15% of the companies in the same industry.
BRSP has a Quick Ratio of 0.69. This is a bad value and indicates that BRSP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BRSP (0.69) is better than 70.15% 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 -27.72%.
The Earnings Per Share has been growing by 37.65% on average over the past years. This is a very strong growth
Looking at the last year, BRSP shows a very negative growth in Revenue. The Revenue has decreased by -15.56% in the last year.
BRSP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.29% yearly.
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
BRSP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.94% yearly.
BRSP is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.57% yearly.
EPS Next Y-22.08%
EPS Next 2Y-7.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-27.28%
Revenue Next 2Y-10.57%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.29, which indicates a rather cheap valuation of BRSP.
BRSP's Price/Earnings ratio is rather cheap when compared to the industry. BRSP is cheaper than 85.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, BRSP is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.47, the valuation of BRSP can be described as very cheap.
BRSP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BRSP is cheaper than 73.13% of the companies in the same industry.
BRSP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRSP indicates a rather cheap valuation: BRSP is cheaper than 97.01% of the companies listed in the same industry.
BRSP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BRSP is cheaper than 77.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.77 | ||
| EV/EBITDA | 14.62 |
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)0.19
EPS Next 2Y-7.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRSP has a Yearly Dividend Yield of 12.40%, which is a nice return.
Compared to an average industry Dividend Yield of 10.79, BRSP pays a bit more dividend than its industry peers.
BRSP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.4% |
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.
BRSP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-134.92%
EPS Next 2Y-7.94%
EPS Next 3YN/A
5.32
+0.16 (+3.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners66.2%
Inst Owner Change0.09%
Ins Owners2.14%
Ins Owner Change14.09%
Market Cap694.05M
Analysts73.85
Price Target6.46 (21.43%)
Short Float %2.43%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.4% |
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)-5%
PT rev (3m)-8.43%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-5.22%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)-9.44%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-5.44%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-8.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 7.47 | ||
| P/S | 2.04 | ||
| P/FCF | 7.77 | ||
| P/OCF | 7.77 | ||
| P/B | 0.67 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 14.62 |
EPS(TTM)0.73
EY13.72%
EPS(NY)0.71
Fwd EY13.38%
FCF(TTM)0.68
FCFY12.87%
OCF(TTM)0.68
OCFY12.87%
SpS2.61
BVpS7.93
TBVpS7.67
PEG (NY)N/A
PEG (5Y)0.19
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
WACC6.61%
ROIC/WACC0.58
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-22.08%
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-27.28%
Revenue Next 2Y-10.57%
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%