BRIGHTSPIRE CAPITAL INC (BRSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRSP - US10949T1097 - REIT
6 USD
+0.04 (+0.67%)
5.9983 USD
0 (-0.03%)
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 an average financial health and profitability rating. BRSP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year BRSP was profitable.
- In the past year BRSP had a positive cash flow from operations.
- 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 (-1.15%) than 77.94% of its industry peers.
- The Return On Equity of BRSP (-3.88%) is worse than 73.53% of its industry peers.
- With an excellent Return On Invested Capital value of 3.89%, BRSP belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
- BRSP had an Average Return On Invested Capital over the past 3 years of 3.24%. This is in line with the industry average of 1.28%.
- The last Return On Invested Capital (3.89%) for BRSP is above the 3 year average (3.24%), which is a sign of increasing profitability.
| 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
- BRSP's Operating Margin of 47.34% is amongst the best of the industry. BRSP outperforms 89.71% of its industry peers.
- BRSP's Operating Margin has improved in the last couple of years.
- The Gross Margin of BRSP (83.39%) is better than 94.12% of its industry peers.
- BRSP's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BRSP is destroying value.
- The number of shares outstanding for BRSP has been reduced compared to 1 year ago.
- The number of shares outstanding for BRSP has been increased compared to 5 years ago.
- BRSP has a worse debt/assets ratio than last year.
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.
- The Altman-Z score of BRSP (-0.34) is comparable to the rest of the industry.
- 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.
- BRSP's Debt to FCF ratio of 26.31 is amongst the best of the industry. BRSP outperforms 88.24% of its industry peers.
- BRSP has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
- BRSP has a Debt to Equity ratio of 2.22. This is in the better half of the industry: BRSP outperforms 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 26.31 | ||
| Altman-Z | -0.34 |
ROIC/WACC0.6
WACC6.51%
2.3 Liquidity
- A Current Ratio of 1.15 indicates that BRSP should not have too much problems paying its short term obligations.
- The Current ratio of BRSP (1.15) is better than 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.
- BRSP's Quick ratio of 1.15 is amongst the best of the industry. BRSP outperforms 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%.
- BRSP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.65% yearly.
- BRSP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.35%.
- Measured over the past years, BRSP shows a decrease in Revenue. The Revenue has been decreasing by -8.29% on average per year.
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
- BRSP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.94% yearly.
- BRSP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.94% yearly.
EPS Next Y-19.05%
EPS Next 2Y-7.71%
EPS Next 3Y-3.94%
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
- 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 8.82 indicates a reasonable valuation of BRSP.
- Compared to the rest of the industry, the Price/Earnings ratio of BRSP indicates a somewhat cheap valuation: BRSP is cheaper than 77.94% of the companies listed in the same industry.
- BRSP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.82.
- BRSP is valuated reasonably with a Price/Forward Earnings ratio of 8.39.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BRSP indicates a somewhat cheap valuation: BRSP is cheaper than 69.12% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. BRSP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 8.39 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BRSP is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
- 75.00% of the companies in the same industry are more expensive than BRSP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.43 | ||
| EV/EBITDA | 14.55 |
4.3 Compensation for Growth
- A cheap valuation may be justified as BRSP's earnings are expected to decrease with -3.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-7.71%
EPS Next 3Y-3.94%
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 11.26, BRSP has a dividend in line with its industry peers.
- BRSP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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.
- BRSP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-219.36%
EPS Next 2Y-7.71%
EPS Next 3Y-3.94%
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 8.82 and the Price/Book (PB) ratio is 0.8.
What is the financial health of BRIGHTSPIRE CAPITAL INC (BRSP) stock?
The financial health rating of BRIGHTSPIRE CAPITAL INC (BRSP) is 5 / 10.