BRIGHTSPIRE CAPITAL INC (BRSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRSP - US10949T1097 - REIT
6.015 USD
+0.01 (+0.25%)
BRSP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. BRSP has an average financial health and profitability rating. BRSP has a valuation in line with the averages, 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.
- BRSP had negative earnings in 4 of the past 5 years.
- 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.
- With a Return On Equity value of -3.88%, BRSP is not doing good in the industry: 73.53% of the companies in the same industry are doing better.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for BRSP is in line with the industry average of 1.28%.
- The 3 year average ROIC (3.24%) for BRSP is below the current ROIC(3.89%), indicating increased profibility in the last year.
| 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
- The Operating Margin of BRSP (47.34%) is better than 89.71% of its industry peers.
- BRSP's Operating Margin has improved in the last couple of years.
- BRSP has a better Gross Margin (83.39%) than 94.12% of its industry peers.
- In the last couple of years the Gross Margin of BRSP has grown nicely.
| 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
- BRSP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- BRSP has less shares outstanding than it did 1 year ago.
- BRSP has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for BRSP is higher compared to a year ago.
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.
- BRSP has a Altman-Z score (-0.34) which 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.
- The Debt to FCF ratio of BRSP (26.31) is better than 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.
- BRSP has a Quick Ratio of 1.15. This is a normal value and indicates that BRSP is financially healthy and should not expect problems in meeting 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
- The earnings per share for BRSP have decreased strongly by -27.66% in the last year.
- The Earnings Per Share has been growing by 37.65% on average over the past years. This is a very strong growth
- Looking at the last year, BRSP shows a very negative growth in Revenue. The Revenue has decreased by -13.35% in the last year.
- The Revenue has been decreasing by -8.29% on average over the past years.
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
- Based on estimates for the next years, BRSP will show a decrease in Earnings Per Share. The EPS will decrease by -3.94% on average per year.
- 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
- 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 8.85, the valuation of BRSP can be described as reasonable.
- Based on the Price/Earnings ratio, BRSP is valued a bit cheaper than the industry average as 77.94% of the companies are valued more expensively.
- BRSP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 8.41, the valuation of BRSP can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, BRSP is valued a bit cheaper than 69.12% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of BRSP to the average of the S&P500 Index (25.83), we can say BRSP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.85 | ||
| Fwd PE | 8.41 |
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 97.06% of the companies listed in the same industry.
- BRSP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BRSP is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| EV/EBITDA | 14.57 |
4.3 Compensation for Growth
- BRSP's earnings are expected to decrease with -3.94% in the coming years. This may justify a cheaper valuation.
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.
- BRSP's Dividend Yield is slightly below the industry average, which is at 11.26.
- Compared to an average S&P500 Dividend Yield of 1.82, BRSP pays a better dividend.
| 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 8.85 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.