BRIGHTSPIRE CAPITAL INC (BRSP) Stock Fundamental Analysis
NYSE:BRSP - New York Stock Exchange, Inc. - US10949T1097 - REIT - Currency: USD
BRSP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 66 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
The Return On Assets of BRSP (-1.96%) is worse than 80.30% of its industry peers.
With a Return On Equity value of -6.72%, BRSP is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.83%, BRSP belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BRSP is in line with the industry average of 1.42%.
The 3 year average ROIC (3.24%) for BRSP is below the current ROIC(3.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.96% | ||
| ROE | -6.72% | ||
| ROIC | 3.83% |
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 (45.08%) is better than 89.39% of its industry peers.
BRSP's Operating Margin has improved in the last couple of years.
BRSP has a better Gross Margin (90.10%) than 96.97% of its industry peers.
In the last couple of years the Gross Margin of BRSP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.08% | ||
| PM (TTM) | N/A | ||
| GM | 90.1% |
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.
The number of shares outstanding for BRSP has been increased compared to 5 years ago.
The debt/assets ratio for BRSP is higher compared to a year ago.
2.2 Solvency
BRSP has an Altman-Z score of -0.37. This is a bad value and indicates that BRSP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BRSP (-0.37) is comparable to the rest of the industry.
BRSP has a debt to FCF ratio of 26.24. This is a negative value and a sign of low solvency as BRSP would need 26.24 years to pay back of all of its debts.
The Debt to FCF ratio of BRSP (26.24) is better than 83.33% of its industry peers.
BRSP has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
With an excellent Debt to Equity ratio value of 2.03, BRSP belongs to the best of the industry, outperforming 80.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 26.24 | ||
| Altman-Z | -0.37 |
ROIC/WACC0.57
WACC6.71%
2.3 Liquidity
BRSP has a Current Ratio of 0.69. This is a bad value and indicates that BRSP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.69, BRSP is doing good in the industry, outperforming 69.70% of the companies in the same industry.
BRSP has a Quick Ratio of 0.69. This is a bad value and indicates that BRSP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.69, BRSP is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
BRSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.96%.
The Earnings Per Share has been growing by 37.65% on average over the past years. This is a very strong growth
The Revenue for BRSP has decreased by -15.12% in the past year. This is quite bad
The Revenue has been decreasing by -8.29% on average over the past years.
EPS 1Y (TTM)-25.96%
EPS 3Y25.01%
EPS 5Y37.65%
EPS Q2Q%-30.43%
Revenue 1Y (TTM)-15.12%
Revenue growth 3Y-0.36%
Revenue growth 5Y-8.29%
Sales Q2Q%-42.13%
3.2 Future
BRSP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.94% yearly.
BRSP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.38% yearly.
EPS Next Y-22.08%
EPS Next 2Y-7.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-26.79%
Revenue Next 2Y-9.38%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.48, the valuation of BRSP can be described as very cheap.
BRSP's Price/Earnings ratio is rather cheap when compared to the industry. BRSP is cheaper than 86.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of BRSP to the average of the S&P500 Index (27.19), we can say BRSP is valued rather cheaply.
BRSP is valuated cheaply with a Price/Forward Earnings ratio of 7.01.
Based on the Price/Forward Earnings ratio, BRSP is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BRSP to the average of the S&P500 Index (35.33), we can say BRSP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.48 | ||
| Fwd PE | 7.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRSP is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BRSP is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 14.44 |
4.3 Compensation for Growth
A cheap valuation may be justified as BRSP's earnings are expected to decrease with -7.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-7.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.55%, BRSP is a good candidate for dividend investing.
BRSP's Dividend Yield is a higher than the industry average which is at 11.56.
Compared to an average S&P500 Dividend Yield of 2.35, BRSP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.55% |
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
The earnings of BRSP are negative and hence is the payout ratio. BRSP will probably not be able to sustain this dividend level.
BRSP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-134.92%
EPS Next 2Y-7.94%
EPS Next 3YN/A
4.99
-0.06 (-1.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners66.2%
Inst Owner Change0%
Ins Owners2.14%
Ins Owner Change14.09%
Market Cap651.00M
Analysts75.38
Price Target6.8 (36.27%)
Short Float %2.62%
Short Ratio5.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.55% |
Yearly Dividend0.76
Dividend Growth(5Y)-14.79%
DP-134.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.58%
Min EPS beat(2)-4.52%
Max EPS beat(2)-2.64%
EPS beat(4)1
Avg EPS beat(4)-0.56%
Min EPS beat(4)-4.52%
Max EPS beat(4)5.58%
EPS beat(8)5
Avg EPS beat(8)8.63%
EPS beat(12)8
Avg EPS beat(12)7.09%
EPS beat(16)10
Avg EPS beat(16)-6.92%
Revenue beat(2)0
Avg Revenue beat(2)-12.26%
Min Revenue beat(2)-12.93%
Max Revenue beat(2)-11.59%
Revenue beat(4)0
Avg Revenue beat(4)-11.8%
Min Revenue beat(4)-15.28%
Max Revenue beat(4)-7.39%
Revenue beat(8)2
Avg Revenue beat(8)-6.8%
Revenue beat(12)5
Avg Revenue beat(12)52.02%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-9.6%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-8.61%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)-9.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.48 | ||
| Fwd PE | 7.01 | ||
| P/S | 1.91 | ||
| P/FCF | 7.29 | ||
| P/OCF | 7.29 | ||
| P/B | 0.63 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 14.44 |
EPS(TTM)0.77
EY15.43%
EPS(NY)0.71
Fwd EY14.27%
FCF(TTM)0.68
FCFY13.72%
OCF(TTM)0.68
OCFY13.72%
SpS2.61
BVpS7.93
TBVpS7.67
PEG (NY)N/A
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.96% | ||
| ROE | -6.72% | ||
| ROCE | 4.85% | ||
| ROIC | 3.83% | ||
| ROICexc | 4.09% | ||
| ROICexgc | 4.22% | ||
| OM | 45.08% | ||
| PM (TTM) | N/A | ||
| GM | 90.1% | ||
| FCFM | 26.25% |
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 | 2.03 | ||
| Debt/FCF | 26.24 | ||
| Debt/EBITDA | 10.81 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | -0.37 |
F-Score4
WACC6.71%
ROIC/WACC0.57
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)-25.96%
EPS 3Y25.01%
EPS 5Y37.65%
EPS Q2Q%-30.43%
EPS Next Y-22.08%
EPS Next 2Y-7.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.12%
Revenue growth 3Y-0.36%
Revenue growth 5Y-8.29%
Sales Q2Q%-42.13%
Revenue Next Year-26.79%
Revenue Next 2Y-9.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.12%
EBIT growth 3Y-28.49%
EBIT growth 5Y20.64%
EBIT Next Year1769.16%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-32.63%
FCF growth 3YN/A
FCF growth 5Y-5.5%
OCF growth 1Y-32.63%
OCF growth 3YN/A
OCF growth 5Y-5.5%