BrightSpire Capital (BRSP) AI Stock Analysis

• Market Cap: $724.07M
• Dividend Yield: 11.79%
• Average Volume (3M): 658.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: -14.73%
• EPS Growth: 79.63%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.18
• Shares Outstanding: 129,993,940
• 10 Day Avg. Volume: 795,659
• 30 Day Avg. Volume: 658,028
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.68
• Enterprise Value/Revenue: 8.04
• Enterprise Value/Gross Profit: 14.08
• Enterprise Value/Ebitda: 20.17
• 1Y Price Target: $5.75
• Price Target Upside: 5.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $5.50 ▲(1.29% Upside)

BrightSpire Capital's overall stock score reflects mixed financial performance with strong cash flow but profitability challenges. Technical analysis shows positive momentum, while valuation is hindered by a negative P/E ratio. The earnings call provides a balanced view with both achievements and challenges noted.

Positive Factors

Cash Flow Strength

The significant growth in free cash flow indicates strong cash generation capabilities, providing financial stability and flexibility for future investments and operations.

Improved Leverage

Improved leverage management enhances financial health, reducing risk and increasing the company's ability to invest in growth opportunities without over-relying on debt.

Positive Net Loan Growth

Positive net loan growth reflects effective portfolio management and potential for increased revenue from interest income, supporting long-term business expansion.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in market conditions or revenue generation, which could hinder growth and profitability if not addressed.

Negative Net Income

A negative net income margin indicates ongoing profitability challenges, which can impact the company's ability to reinvest in its business and return value to shareholders.

Asset Impairments

Significant asset impairments due to defaults and foreclosures can reduce asset value and future income potential, impacting long-term financial performance.

BrightSpire Capital Business Overview & Revenue Model

Company Description

BrightSpire Capital (BRSP) is a real estate investment trust (REIT) that focuses on originating, acquiring, financing, and managing a diversified portfolio of commercial real estate debt and net lease real estate investments across the United States. The company primarily deals in senior and mezzanine loans, preferred equity, and other commercial real estate-related debt instruments. BrightSpire Capital aims to deliver attractive risk-adjusted returns to its investors through its disciplined investment approach and robust risk management practices.

How the Company Makes Money

BrightSpire Capital makes money through various revenue streams primarily centered around its investment in commercial real estate debt and equity. The company generates income from interest earned on its loan portfolios, rental income from owned properties, and capital gains from the sale of assets. Additionally, BrightSpire Capital may engage in strategic partnerships or joint ventures with other real estate or financial entities to enhance its investment opportunities and diversify its income sources. The firm's careful selection of investment opportunities, along with its focus on maintaining a balanced and diversified portfolio, plays a significant role in its profitability.

BrightSpire Capital Financial Statement Overview

Summary

BrightSpire Capital exhibits mixed financial performance. Strong gross profit margins and improved cash flow are positive, but declining revenue and negative net income impact profitability. Improved leverage is noted, but negative return on equity remains a concern.

Income Statement

BrightSpire Capital's income statement shows mixed performance. The gross profit margin is relatively strong at 57.13% TTM, indicating efficient cost management. However, the net profit margin is negative at -21.20% TTM, reflecting ongoing profitability challenges. Revenue has declined by 2.10% TTM, suggesting potential issues in revenue generation or market conditions. The EBIT and EBITDA margins are positive at 26.90% and 39.88% TTM, respectively, showing some operational efficiency, but the negative net income remains a concern.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved to 0.49 TTM from higher levels in previous years, indicating better leverage management. However, the return on equity is negative at -6.74% TTM, highlighting profitability issues. The equity ratio stands at 29.16% TTM, suggesting a reasonable level of equity financing relative to total assets, but the company needs to improve its return on equity to enhance shareholder value.

Cash Flow

Cash flow analysis shows positive trends. The free cash flow has grown significantly by 151.52% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.47 TTM, and the free cash flow to net income ratio is 1.0 TTM, suggesting that the company is generating sufficient cash relative to its net income, despite the latter being negative. This strong cash flow performance provides some financial stability and flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	331.00M	347.22M	415.08M	358.54M	290.07M	424.35M
Gross Profit	189.11M	159.42M	317.37M	193.07M	153.52M	212.37M
EBITDA	132.02M	-66.81M	35.91M	112.52M	101.03M	-142.60M
Net Income	-70.17M	-131.98M	-15.55M	45.79M	-101.05M	-353.30M
Balance Sheet
Total Assets	3.41B	3.72B	4.20B	4.75B	5.64B	6.21B
Cash, Cash Equivalents and Short-Term Investments	154.28M	302.17M	257.51M	306.32M	259.72M	485.21M
Total Debt	483.11M	2.52B	2.74B	3.19B	3.97B	4.12B
Total Liabilities	2.42B	2.68B	2.92B	3.36B	4.15B	4.25B
Stockholders Equity	994.36M	1.05B	1.28B	1.39B	1.46B	1.67B
Cash Flow
Free Cash Flow	224.68M	103.41M	137.62M	125.28M	-21.27M	96.36M
Operating Cash Flow	224.68M	103.41M	137.62M	125.28M	-21.27M	96.36M
Investing Cash Flow	98.65M	313.08M	384.16M	89.34M	-555.79M	1.00B
Financing Cash Flow	-219.34M	-327.95M	-558.60M	-161.45M	384.36M	-754.06M

BrightSpire Capital Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRSP, the sentiment is Neutral. The current price of 5.43 is below the 20-day moving average (MA) of 5.61, above the 50-day MA of 5.39, and above the 200-day MA of 5.15, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.59 is Neutral, neither overbought nor oversold. The STOCH value of -21.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BRSP.

BrightSpire Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLP	76 Outperform	$478.22M	17.11	9.33%	8.13%	5.57%	-14.50%
AHH	60 Neutral	$708.44M	76.20	2.60%	8.94%	-25.73%	―
GOOD	59 Neutral	$652.57M	34.20	16.84%	9.77%	5.85%	―
BRSP	56 Neutral	$724.07M	―	-2.41%	11.79%	-14.73%	79.63%
CTO	52 Neutral	$534.28M	-12.28	-5.58%	9.37%	22.26%	-328.46%
PKST	51 Neutral	$485.64M	-1.49	-44.09%	5.87%	-6.69%	-118.66%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

BrightSpire Capital Corporate Events

BrightSpire Capital Holds Annual Stockholders Meeting

On May 14, 2025, BrightSpire Capital held its annual meeting of stockholders, where several key decisions were made. The stockholders elected six directors to serve until the 2026 meeting, approved executive compensation for 2024, decided on an annual advisory vote on executive compensation, and ratified Deloitte & Touche LLP as the independent public accounting firm for 2025. These decisions reflect the company’s commitment to maintaining transparent governance and aligning executive pay with shareholder interests.

The most recent analyst rating on (BRSP) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on BrightSpire Capital stock, see the BRSP Stock Forecast page.