FRANKLIN BSP REALTY TRUST IN (FBRT) Stock Fundamental Analysis
NYSE:FBRT - New York Stock Exchange, Inc. - US35243J1016 - REIT - Currency: USD
Overall FBRT gets a fundamental rating of 4 out of 10. We evaluated FBRT against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. FBRT has a medium profitability rating, but doesn't score so well on its financial health evaluation. FBRT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
FBRT had positive earnings in the past year.
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.
In the past 5 years FBRT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 1.15%, FBRT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Return On Equity of FBRT (4.30%) is comparable to the rest of the industry.
FBRT has a better Return On Invested Capital (1.85%) than 86.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FBRT is in line with the industry average of 1.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 4.3% | ||
| ROIC | 1.85% |
ROA(3y)0.9%
ROA(5y)0.77%
ROE(3y)3.27%
ROE(5y)2.67%
ROIC(3y)1.98%
ROIC(5y)1.77%
1.3 Margins
The Profit Margin of FBRT (12.25%) is better than 63.08% of its industry peers.
In the last couple of years the Profit Margin of FBRT has declined.
With an excellent Operating Margin value of 24.61%, FBRT belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
In the last couple of years the Operating Margin of FBRT has declined.
The Gross Margin of FBRT (32.61%) is better than 72.31% of its industry peers.
In the last couple of years the Gross Margin of FBRT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.61% | ||
| PM (TTM) | 12.25% | ||
| GM | 32.61% |
OM growth 3Y-18.47%
OM growth 5Y-9.13%
PM growth 3YN/A
PM growth 5Y-15.41%
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.
Compared to 5 years ago, FBRT has more shares outstanding
FBRT has a worse debt/assets ratio than last year.
2.2 Solvency
FBRT has an Altman-Z score of 0.17. 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 of 0.17. This is in the better half of the industry: FBRT outperforms 76.92% of its industry peers.
FBRT has a debt to FCF ratio of 75.36. This is a negative value and a sign of low solvency as FBRT would need 75.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 75.36, FBRT is in line with its industry, outperforming 47.69% of the companies in the same industry.
A Debt/Equity ratio of 2.69 is on the high side and indicates that FBRT has dependencies on debt financing.
FBRT has a better Debt to Equity ratio (2.69) than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 75.36 | ||
| Altman-Z | 0.17 |
ROIC/WACC0.25
WACC7.34%
2.3 Liquidity
A Current Ratio of 0.62 indicates that FBRT may have some problems paying its short term obligations.
FBRT has a Current ratio of 0.62. This is in the better half of the industry: FBRT outperforms 70.77% of its industry peers.
A Quick Ratio of 0.62 indicates that FBRT may have some problems paying its short term obligations.
FBRT has a Quick ratio of 0.62. This is in the better half of the industry: FBRT outperforms 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for FBRT have decreased strongly by -56.61% in the last year.
The earnings per share for FBRT have been decreasing by -12.06% on average. This is quite bad
Looking at the last year, FBRT shows a decrease in Revenue. The Revenue has decreased by -1.95% in the last year.
The Revenue has been growing by 18.90% on average over the past years. This is quite good.
EPS 1Y (TTM)-56.61%
EPS 3YN/A
EPS 5Y-12.06%
EPS Q2Q%-24.39%
Revenue 1Y (TTM)-1.95%
Revenue growth 3Y38.51%
Revenue growth 5Y18.9%
Sales Q2Q%-7.12%
3.2 Future
Based on estimates for the next years, FBRT will show a very strong growth in Earnings Per Share. The EPS will grow by 30.56% on average per year.
Based on estimates for the next years, FBRT will show a small growth in Revenue. The Revenue will grow by 4.12% on average per year.
EPS Next Y45.46%
EPS Next 2Y30.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.04%
Revenue Next 2Y4.12%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.54, the valuation of FBRT can be described as correct.
61.54% of the companies in the same industry are more expensive than FBRT, based on the Price/Earnings ratio.
FBRT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
With a Price/Forward Earnings ratio of 7.08, the valuation of FBRT can be described as very cheap.
Based on the Price/Forward Earnings ratio, FBRT is valued a bit cheaper than 78.46% of the companies in the same industry.
FBRT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 7.08 |
4.2 Price Multiples
FBRT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FBRT is cheaper than 90.77% of the companies in the same industry.
FBRT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.94 | ||
| EV/EBITDA | 31.21 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FBRT's earnings are expected to grow with 30.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y30.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FBRT has a Yearly Dividend Yield of 12.40%, which is a nice return.
FBRT's Dividend Yield is comparable with the industry average which is at 13.93.
Compared to an average S&P500 Dividend Yield of 2.43, FBRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.4% |
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.
The dividend of FBRT decreased in the last 3 years.
Dividend Growth(5Y)3.71%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
210.36% 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.
DP210.36%
EPS Next 2Y30.56%
EPS Next 3YN/A
11.1
-0.25 (-2.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners64.59%
Inst Owner Change0.18%
Ins Owners1.03%
Ins Owner Change17.62%
Market Cap912.53M
Analysts85.45
Price Target15.71 (41.53%)
Short Float %2.76%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.4% |
Yearly Dividend1.75
Dividend Growth(5Y)3.71%
DP210.36%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-63.41%
Min EPS beat(2)-128.83%
Max EPS beat(2)2.01%
EPS beat(4)2
Avg EPS beat(4)-36.95%
Min EPS beat(4)-128.83%
Max EPS beat(4)3.07%
EPS beat(8)5
Avg EPS beat(8)-13.32%
EPS beat(12)7
Avg EPS beat(12)-12.66%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-8.13%
Max Revenue beat(2)7.79%
Revenue beat(4)1
Avg Revenue beat(4)-4.02%
Min Revenue beat(4)-9.37%
Max Revenue beat(4)7.79%
Revenue beat(8)4
Avg Revenue beat(8)1.53%
Revenue beat(12)8
Avg Revenue beat(12)25.92%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.11%
PT rev (3m)0.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.37%
Revenue NY rev (1m)3.67%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 7.08 | ||
| P/S | 1.62 | ||
| P/FCF | 15.94 | ||
| P/OCF | 15.94 | ||
| P/B | 0.57 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 31.21 |
EPS(TTM)0.82
EY7.39%
EPS(NY)1.57
Fwd EY14.13%
FCF(TTM)0.7
FCFY6.27%
OCF(TTM)0.7
OCFY6.27%
SpS6.84
BVpS19.49
TBVpS19.49
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 4.3% | ||
| ROCE | 2.58% | ||
| ROIC | 1.85% | ||
| ROICexc | 1.9% | ||
| ROICexgc | 1.98% | ||
| OM | 24.61% | ||
| PM (TTM) | 12.25% | ||
| GM | 32.61% | ||
| FCFM | 10.18% |
ROA(3y)0.9%
ROA(5y)0.77%
ROE(3y)3.27%
ROE(5y)2.67%
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-15.41%
GM growth 3Y-14.34%
GM growth 5Y-8.05%
F-Score3
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 75.36 | ||
| Debt/EBITDA | 29.94 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.43 | ||
| Cash Conversion | 39.73% | ||
| Profit Quality | 83.08% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.17 |
F-Score3
WACC7.34%
ROIC/WACC0.25
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)-56.61%
EPS 3YN/A
EPS 5Y-12.06%
EPS Q2Q%-24.39%
EPS Next Y45.46%
EPS Next 2Y30.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.95%
Revenue growth 3Y38.51%
Revenue growth 5Y18.9%
Sales Q2Q%-7.12%
Revenue Next Year4.04%
Revenue Next 2Y4.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.69%
EBIT growth 3Y12.93%
EBIT growth 5Y8.05%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71%
FCF growth 3Y-26.9%
FCF growth 5Y5.93%
OCF growth 1Y-71%
OCF growth 3Y-26.9%
OCF growth 5Y4.74%