BRIGHTSPIRE CAPITAL INC (BRSP) Stock Fundamental Analysis
NYSE:BRSP - New York Stock Exchange, Inc. - US10949T1097 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to BRSP. BRSP was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of BRSP get a neutral evaluation. Nothing too spectacular is happening here. 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
BRSP had positive earnings in the past year.
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 (-3.37%) than 90.63% of its industry peers.
The Return On Equity of BRSP (-11.96%) is worse than 89.06% of its industry peers.
With an excellent Return On Invested Capital value of 2.52%, BRSP belongs to the best of the industry, outperforming 90.63% 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 1.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.37% | ||
| ROE | -11.96% | ||
| ROIC | 2.52% |
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 29.89% is amongst the best of the industry. BRSP outperforms 85.94% of its industry peers.
BRSP's Operating Margin has improved in the last couple of years.
The Gross Margin of BRSP (90.77%) is better than 96.88% of its industry peers.
BRSP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.89% | ||
| PM (TTM) | N/A | ||
| GM | 90.77% |
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.
The number of shares outstanding for BRSP has been reduced compared to 1 year ago.
BRSP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BRSP has a worse debt to assets ratio.
2.2 Solvency
BRSP has an Altman-Z score of -0.31. This is a bad value and indicates that BRSP is not financially healthy and even has some risk of bankruptcy.
BRSP has a Altman-Z score of -0.31. This is comparable to the rest of the industry: BRSP outperforms 42.19% of its industry peers.
The Debt to FCF ratio of BRSP is 24.09, which is on the high side as it means it would take BRSP, 24.09 years of fcf income to pay off all of its debts.
BRSP has a better Debt to FCF ratio (24.09) than 79.69% of its industry peers.
A Debt/Equity ratio of 2.18 is on the high side and indicates that BRSP has dependencies on debt financing.
BRSP has a better Debt to Equity ratio (2.18) than 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 24.09 | ||
| Altman-Z | -0.31 |
ROIC/WACC0.37
WACC6.81%
2.3 Liquidity
A Current Ratio of 1.02 indicates that BRSP should not have too much problems paying its short term obligations.
BRSP's Current ratio of 1.02 is amongst the best of the industry. BRSP outperforms 82.81% of its industry peers.
A Quick Ratio of 1.02 indicates that BRSP should not have too much problems paying its short term obligations.
BRSP has a better Quick ratio (1.02) than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
BRSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.22%.
BRSP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.65% yearly.
Looking at the last year, BRSP shows a very negative growth in Revenue. The Revenue has decreased by -11.71% in the last year.
The Revenue has been decreasing by -8.29% on average over the past years.
EPS 1Y (TTM)-22.22%
EPS 3Y25.01%
EPS 5Y37.65%
EPS Q2Q%-35.71%
Revenue 1Y (TTM)-11.71%
Revenue growth 3Y-0.36%
Revenue growth 5Y-8.29%
Sales Q2Q%-42.22%
3.2 Future
BRSP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.52% yearly.
The Revenue is expected to grow by 6.36% on average over the next years.
EPS Next Y-6.96%
EPS Next 2Y-0.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.91%
Revenue Next 2Y6.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 7.24, the valuation of BRSP can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of BRSP indicates a rather cheap valuation: BRSP is cheaper than 85.94% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BRSP to the average of the S&P500 Index (29.35), we can say BRSP is valued rather cheaply.
The Price/Forward Earnings ratio is 7.78, which indicates a rather cheap valuation of BRSP.
79.69% of the companies in the same industry are more expensive than BRSP, based on the Price/Forward Earnings ratio.
BRSP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 7.78 |
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 96.88% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRSP indicates a somewhat cheap valuation: BRSP is cheaper than 76.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.63 | ||
| EV/EBITDA | 20.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-0.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BRSP has a Yearly Dividend Yield of 10.63%, which is a nice return.
BRSP's Dividend Yield is slightly below the industry average, which is at 12.68.
BRSP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.63% |
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.
BRSP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-14.79%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
The earnings of BRSP are negative and hence is the payout ratio. BRSP will probably not be able to sustain this dividend level.
The Dividend Rate of BRSP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-79.02%
EPS Next 2Y-0.52%
EPS Next 3YN/A
6.08
+0.06 (+1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners65.21%
Inst Owner Change-0.46%
Ins Owners1.86%
Ins Owner Change0%
Market Cap788.52M
Analysts74.29
Price Target7.52 (23.68%)
Short Float %0.63%
Short Ratio1.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.63% |
Yearly Dividend0.76
Dividend Growth(5Y)-14.79%
DP-79.02%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.47%
Min EPS beat(2)-2.64%
Max EPS beat(2)5.58%
EPS beat(4)2
Avg EPS beat(4)6.4%
Min EPS beat(4)-2.64%
Max EPS beat(4)23.31%
EPS beat(8)6
Avg EPS beat(8)10.11%
EPS beat(12)8
Avg EPS beat(12)6.68%
EPS beat(16)10
Avg EPS beat(16)-8.52%
Revenue beat(2)0
Avg Revenue beat(2)-14.11%
Min Revenue beat(2)-15.28%
Max Revenue beat(2)-12.93%
Revenue beat(4)0
Avg Revenue beat(4)-9.76%
Min Revenue beat(4)-15.28%
Max Revenue beat(4)-3.44%
Revenue beat(8)2
Avg Revenue beat(8)-5.63%
Revenue beat(12)6
Avg Revenue beat(12)70.14%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.96%
EPS NQ rev (1m)-3.19%
EPS NQ rev (3m)-2.62%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)-4.92%
Revenue NQ rev (3m)-10.1%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-4.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 7.78 | ||
| P/S | 2.2 | ||
| P/FCF | 7.63 | ||
| P/OCF | 7.63 | ||
| P/B | 0.75 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 20.15 |
EPS(TTM)0.84
EY13.82%
EPS(NY)0.78
Fwd EY12.85%
FCF(TTM)0.8
FCFY13.11%
OCF(TTM)0.8
OCFY13.11%
SpS2.77
BVpS8.08
TBVpS7.81
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.37% | ||
| ROE | -11.96% | ||
| ROCE | 3.19% | ||
| ROIC | 2.52% | ||
| ROICexc | 2.77% | ||
| ROICexgc | 2.8% | ||
| OM | 29.89% | ||
| PM (TTM) | N/A | ||
| GM | 90.77% | ||
| FCFM | 28.8% |
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 | 2.18 | ||
| Debt/FCF | 24.09 | ||
| Debt/EBITDA | 15.48 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.62 | ||
| Cash Conversion | 69.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | -0.31 |
F-Score4
WACC6.81%
ROIC/WACC0.37
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)-22.22%
EPS 3Y25.01%
EPS 5Y37.65%
EPS Q2Q%-35.71%
EPS Next Y-6.96%
EPS Next 2Y-0.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-11.71%
Revenue growth 3Y-0.36%
Revenue growth 5Y-8.29%
Sales Q2Q%-42.22%
Revenue Next Year-12.91%
Revenue Next 2Y6.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-41.42%
EBIT growth 3Y-28.49%
EBIT growth 5Y20.64%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.86%
FCF growth 3YN/A
FCF growth 5Y-5.5%
OCF growth 1Y-24.86%
OCF growth 3YN/A
OCF growth 5Y-5.5%