FRANKLIN BSP REALTY TRUST IN (FBRT) Stock Fundamental Analysis
NYSE:FBRT - New York Stock Exchange, Inc. - US35243J1016 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to FBRT. FBRT was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of FBRT get a neutral evaluation. Nothing too spectacular is happening here. FBRT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FBRT was profitable.
FBRT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FBRT reported negative net income in multiple years.
FBRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FBRT's Return On Assets of 1.43% is amongst the best of the industry. FBRT outperforms 88.06% of its industry peers.
FBRT's Return On Equity of 5.10% is amongst the best of the industry. FBRT outperforms 83.58% of its industry peers.
With an excellent Return On Invested Capital value of 1.56%, FBRT belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FBRT is in line with the industry average of 1.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 5.1% | ||
| ROIC | 1.56% |
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's Profit Margin of 15.25% is amongst the best of the industry. FBRT outperforms 80.60% of its industry peers.
In the last couple of years the Profit Margin of FBRT has declined.
FBRT has a better Operating Margin (20.72%) than 85.07% of its industry peers.
FBRT's Operating Margin has declined in the last couple of years.
The Gross Margin of FBRT (33.08%) is better than 74.63% of its industry peers.
In the last couple of years the Gross Margin of FBRT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.72% | ||
| PM (TTM) | 15.25% | ||
| GM | 33.08% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, FBRT has a worse debt to assets ratio.
2.2 Solvency
FBRT has an Altman-Z score of 0.20. This is a bad value and indicates that FBRT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FBRT (0.20) is better than 76.12% of its industry peers.
The Debt to FCF ratio of FBRT is 23.28, which is on the high side as it means it would take FBRT, 23.28 years of fcf income to pay off all of its debts.
FBRT's Debt to FCF ratio of 23.28 is amongst the best of the industry. FBRT outperforms 86.57% of its industry peers.
A Debt/Equity ratio of 2.50 is on the high side and indicates that FBRT has dependencies on debt financing.
FBRT's Debt to Equity ratio of 2.50 is fine compared to the rest of the industry. FBRT outperforms 76.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.5 | ||
| Debt/FCF | 23.28 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.21
WACC7.32%
2.3 Liquidity
FBRT has a Current Ratio of 1.06. This is a normal value and indicates that FBRT is financially healthy and should not expect problems in meeting its short term obligations.
FBRT has a better Current ratio (1.06) than 71.64% of its industry peers.
A Quick Ratio of 1.06 indicates that FBRT should not have too much problems paying its short term obligations.
FBRT has a Quick ratio of 1.06. This is in the better half of the industry: FBRT outperforms 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
FBRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.27%.
The earnings per share for FBRT have been decreasing by -12.52% on average. This is quite bad
The Revenue has decreased by -5.49% in the past year.
Measured over the past years, FBRT shows a quite strong growth in Revenue. The Revenue has been growing by 18.90% on average per year.
EPS 1Y (TTM)-77.27%
EPS 3YN/A
EPS 5Y-12.52%
EPS Q2Q%-12.9%
Revenue 1Y (TTM)-5.49%
Revenue growth 3Y38.51%
Revenue growth 5Y18.9%
Sales Q2Q%-3.13%
3.2 Future
FBRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.42% yearly.
Based on estimates for the next years, FBRT will show a small growth in Revenue. The Revenue will grow by 4.61% on average per year.
EPS Next Y7.54%
EPS Next 2Y23.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.88%
Revenue Next 2Y4.61%
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 accelerating.
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
FBRT is valuated quite expensively with a Price/Earnings ratio of 31.37.
FBRT's Price/Earnings ratio is a bit more expensive when compared to the industry. FBRT is more expensive than 61.19% of the companies in the same industry.
FBRT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.73.
With a Price/Forward Earnings ratio of 7.83, the valuation of FBRT can be described as very cheap.
Based on the Price/Forward Earnings ratio, FBRT is valued a bit cheaper than the industry average as 68.66% of the companies are valued more expensively.
FBRT is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.37 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
92.54% of the companies in the same industry are more expensive than FBRT, based on the Enterprise Value to EBITDA ratio.
91.04% of the companies in the same industry are more expensive than FBRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.3 | ||
| EV/EBITDA | 35.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FBRT does not grow enough to justify the current Price/Earnings ratio.
FBRT has a very decent profitability rating, which may justify a higher PE ratio.
FBRT's earnings are expected to grow with 23.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.16
PEG (5Y)N/A
EPS Next 2Y23.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.05%, FBRT is a good candidate for dividend investing.
FBRT's Dividend Yield is a higher than the industry average which is at 10.69.
FBRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.05% |
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
180.43% of the earnings are spent on dividend by FBRT. This is not a sustainable payout ratio.
FBRT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP180.43%
EPS Next 2Y23.42%
EPS Next 3YN/A
10.98
+0.2 (+1.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners64.59%
Inst Owner Change0.44%
Ins Owners1.73%
Ins Owner Change4.07%
Market Cap902.67M
Analysts85.45
Price Target15.2 (38.43%)
Short Float %2.99%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.05% |
Yearly Dividend1.75
Dividend Growth(5Y)3.71%
DP180.43%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-77.18%
Min EPS beat(2)-144.4%
Max EPS beat(2)-9.96%
EPS beat(4)1
Avg EPS beat(4)-70.3%
Min EPS beat(4)-144.4%
Max EPS beat(4)2.01%
EPS beat(8)3
Avg EPS beat(8)-37.65%
EPS beat(12)7
Avg EPS beat(12)-21.32%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.85%
Min Revenue beat(2)-7.91%
Max Revenue beat(2)-3.8%
Revenue beat(4)1
Avg Revenue beat(4)-3.01%
Min Revenue beat(4)-8.13%
Max Revenue beat(4)7.79%
Revenue beat(8)2
Avg Revenue beat(8)-4.23%
Revenue beat(12)6
Avg Revenue beat(12)18.4%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.97%
PT rev (3m)-1.97%
EPS NQ rev (1m)-1.99%
EPS NQ rev (3m)-20.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.07%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-3.26%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.37 | ||
| Fwd PE | 7.83 | ||
| P/S | 1.71 | ||
| P/FCF | 5.3 | ||
| P/OCF | 5.3 | ||
| P/B | 0.57 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 35.66 |
EPS(TTM)0.35
EY3.19%
EPS(NY)1.4
Fwd EY12.76%
FCF(TTM)2.07
FCFY18.88%
OCF(TTM)2.07
OCFY18.88%
SpS6.42
BVpS19.2
TBVpS19.2
PEG (NY)4.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 5.1% | ||
| ROCE | 2.11% | ||
| ROIC | 1.56% | ||
| ROICexc | 1.69% | ||
| ROICexgc | 1.76% | ||
| OM | 20.72% | ||
| PM (TTM) | 15.25% | ||
| GM | 33.08% | ||
| FCFM | 32.31% |
ROA(3y)0.89%
ROA(5y)0.77%
ROE(3y)3.24%
ROE(5y)2.64%
ROIC(3y)1.98%
ROIC(5y)1.77%
ROICexc(3y)2.06%
ROICexc(5y)1.84%
ROICexgc(3y)2.11%
ROICexgc(5y)1.89%
ROCE(3y)2.83%
ROCE(5y)2.78%
ROICexcg growth 3Y33.91%
ROICexcg growth 5Y-4.14%
ROICexc growth 3Y32.43%
ROICexc growth 5Y-2.59%
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%
F-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.5 | ||
| Debt/FCF | 23.28 | ||
| Debt/EBITDA | 34.34 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.37 | ||
| Cash Conversion | 148.38% | ||
| Profit Quality | 211.83% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 0.2 |
F-Score7
WACC7.32%
ROIC/WACC0.21
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)-77.27%
EPS 3YN/A
EPS 5Y-12.52%
EPS Q2Q%-12.9%
EPS Next Y7.54%
EPS Next 2Y23.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.49%
Revenue growth 3Y38.51%
Revenue growth 5Y18.9%
Sales Q2Q%-3.13%
Revenue Next Year6.88%
Revenue Next 2Y4.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-27.68%
EBIT growth 3Y12.93%
EBIT growth 5Y8.05%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-33.15%
FCF growth 3Y-26.9%
FCF growth 5Y5.93%
OCF growth 1Y-33.15%
OCF growth 3Y-26.9%
OCF growth 5Y4.74%