FRANKLIN BSP REALTY TRUST IN (FBRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FBRT - US35243J1016 - REIT
10.2 USD
-0.04 (-0.39%)
We assign a fundamental rating of 4 out of 10 to FBRT. FBRT was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While FBRT is still in line with the averages on profitability rating, there are concerns on its financial health. FBRT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year FBRT was profitable.
- In the past year FBRT has reported a negative cash flow from operations.
- The reported net income has been mixed in the past 5 years: FBRT reported negative net income in multiple years.
- Each year in the past 5 years FBRT had a positive operating cash flow.
1.2 Ratios
- FBRT has a better Return On Assets (1.06%) than 82.35% of its industry peers.
- FBRT's Return On Equity of 4.23% is in line compared to the rest of the industry. FBRT outperforms 50.00% of its industry peers.
- With an excellent Return On Invested Capital value of 1.26%, FBRT belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
- FBRT had an Average Return On Invested Capital over the past 3 years of 1.98%. This is in line with the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 4.23% | ||
| ROIC | 1.26% |
ROA(3y)0.89%
ROA(5y)0.77%
ROE(3y)3.24%
ROE(5y)2.64%
ROIC(3y)1.98%
ROIC(5y)1.77%
1.3 Margins
- FBRT has a Profit Margin of 11.96%. This is in the better half of the industry: FBRT outperforms 66.18% of its industry peers.
- In the last couple of years the Profit Margin of FBRT has declined.
- Looking at the Operating Margin, with a value of 17.44%, FBRT is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
- FBRT's Operating Margin has declined in the last couple of years.
- FBRT's Gross Margin of 37.30% is fine compared to the rest of the industry. FBRT outperforms 77.94% of its industry peers.
- In the last couple of years the Gross Margin of FBRT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.44% | ||
| PM (TTM) | 11.96% | ||
| GM | 37.3% |
OM growth 3Y-18.47%
OM growth 5Y-9.13%
PM growth 3YN/A
PM growth 5Y-15.85%
GM growth 3Y-14.34%
GM growth 5Y-8.05%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FBRT is destroying value.
- The number of shares outstanding for FBRT has been increased compared to 1 year ago.
- The number of shares outstanding for FBRT has been increased compared to 5 years ago.
- The debt/assets ratio for FBRT is higher compared to a year ago.
2.2 Solvency
- FBRT has an Altman-Z score of -0.05. This is a bad value and indicates that FBRT is not financially healthy and even has some risk of bankruptcy.
- FBRT has a Altman-Z score (-0.05) which is in line with its industry peers.
- FBRT has a Debt/Equity ratio of 2.77. This is a high value indicating a heavy dependency on external financing.
- FBRT has a Debt to Equity ratio of 2.77. This is in the better half of the industry: FBRT outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.05 |
ROIC/WACC0.18
WACC7.15%
2.3 Liquidity
- FBRT has a Current Ratio of 0.18. This is a bad value and indicates that FBRT is not financially healthy enough and could expect problems in meeting its short term obligations.
- FBRT has a Current ratio of 0.18. This is comparable to the rest of the industry: FBRT outperforms 57.35% of its industry peers.
- FBRT has a Quick Ratio of 0.18. This is a bad value and indicates that FBRT is not financially healthy enough and could expect problems in meeting its short term obligations.
- FBRT has a Quick ratio (0.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
- The earnings per share for FBRT have decreased strongly by -33.66% in the last year.
- Measured over the past years, FBRT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.52% on average per year.
- FBRT shows a decrease in Revenue. In the last year, the revenue decreased by -1.76%.
- FBRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.90% yearly.
EPS 1Y (TTM)-33.66%
EPS 3YN/A
EPS 5Y-12.52%
EPS Q2Q%320%
Revenue 1Y (TTM)-1.76%
Revenue growth 3Y38.51%
Revenue growth 5Y18.9%
Sales Q2Q%-25.72%
3.2 Future
- FBRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.47% yearly.
- The Revenue is expected to grow by 30.17% on average over the next years. This is a very strong growth
EPS Next Y-18.33%
EPS Next 2Y23.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y30.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- FBRT is valuated correctly with a Price/Earnings ratio of 15.22.
- 60.29% of the companies in the same industry are more expensive than FBRT, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of FBRT to the average of the S&P500 Index (27.30), we can say FBRT is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 7.27, the valuation of FBRT can be described as very cheap.
- Based on the Price/Forward Earnings ratio, FBRT is valued cheaply inside the industry as 80.88% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. FBRT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 7.27 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FBRT is valued cheaper than 89.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 37.92 |
4.3 Compensation for Growth
- FBRT's earnings are expected to grow with 23.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y23.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 13.85%, FBRT is a good candidate for dividend investing.
- FBRT's Dividend Yield is rather good when compared to the industry average which is at 11.01. FBRT pays more dividend than 83.82% of the companies in the same industry.
- FBRT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.85% |
5.2 History
- The dividend of FBRT has a limited annual growth rate of 3.71%.
- FBRT has been paying a dividend for over 5 years, so it has already some track record.
- FBRT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.71%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 219.97% of the earnings are spent on dividend by FBRT. This is not a sustainable payout ratio.
- The dividend of FBRT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP219.97%
EPS Next 2Y23.47%
EPS Next 3YN/A
FRANKLIN BSP REALTY TRUST IN / FBRT FAQ
Can you provide the ChartMill fundamental rating for FRANKLIN BSP REALTY TRUST IN?
ChartMill assigns a fundamental rating of 4 / 10 to FBRT.
What is the valuation status of FRANKLIN BSP REALTY TRUST IN (FBRT) stock?
ChartMill assigns a valuation rating of 5 / 10 to FRANKLIN BSP REALTY TRUST IN (FBRT). This can be considered as Fairly Valued.
Can you provide the profitability details for FRANKLIN BSP REALTY TRUST IN?
FRANKLIN BSP REALTY TRUST IN (FBRT) has a profitability rating of 5 / 10.
What is the financial health of FRANKLIN BSP REALTY TRUST IN (FBRT) stock?
The financial health rating of FRANKLIN BSP REALTY TRUST IN (FBRT) is 1 / 10.
What is the expected EPS growth for FRANKLIN BSP REALTY TRUST IN (FBRT) stock?
The Earnings per Share (EPS) of FRANKLIN BSP REALTY TRUST IN (FBRT) is expected to decline by -18.33% in the next year.