BrightSpire Capital (BRSP) AI Stock Analysis

• Market Cap: $731.69M
• Dividend Yield: 11.27%
• Average Volume (3M): 664.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -12.57%
• EPS Growth: 70.50%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.16
• Shares Outstanding: 129,732,930
• 10 Day Avg. Volume: 622,546
• 30 Day Avg. Volume: 664,943
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 2.07
• P/FCF Ratio: 6.95
• Enterprise Value/Market Cap: 3.65
• Enterprise Value/Revenue: 8.16
• Enterprise Value/Gross Profit: 16.11
• Enterprise Value/Ebitda: 66.58
• 1Y Price Target: $5.25
• Price Target Upside: -7.57% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.63
• Revenue Forecast (FY): $330.85M

• Rating: 53 Neutral
• Price Target: $5.50 ▼(-3.17% Downside)

BrightSpire Capital's overall stock score is primarily influenced by its financial performance challenges, including declining revenues and profitability issues. Technical analysis shows a positive trend, which is a supportive factor. Valuation is mixed, with a high dividend yield but negative earnings. The earnings call provided an optimistic outlook, but it was not included in the weighted score due to the methodology.

Positive Factors

Loan Origination Growth

Sustained growth in loan origination indicates robust demand and effective capital deployment, enhancing future revenue streams and market position.

Risk Management Improvement

Effective risk management through reduced watch list exposure strengthens the company's financial stability and lowers potential future losses.

Operational Efficiency

Improved operational efficiency, reflected in higher margins, supports sustainable profitability and competitive advantage in cost management.

Negative Factors

Profitability Challenges

Persistent profitability issues, as shown by negative margins, can hinder long-term growth and investor confidence, requiring strategic adjustments.

Cash Flow Difficulties

Challenges in cash generation limit the company's ability to invest in growth opportunities and maintain financial flexibility, impacting long-term stability.

Specific Reserves and Impairment

Significant reserves and impairments indicate potential asset quality issues, which may affect future earnings and necessitate strategic asset management.

BrightSpire Capital Business Overview & Revenue Model

Company Description

BrightSpire Capital, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States. It focuses on originating, acquiring, financing, and managing a portfolio of CRE senior mortgage loans, mezzanine loans, preferred equity, debt securities, and net leased properties. The company qualifies as a real estate investment trust for federal income tax purposes. The company was formerly known as Colony Credit Real Estate, Inc. and changed its name to BrightSpire Capital, Inc. in June 2021. BrightSpire Capital, Inc. was incorporated in 2017 and is headquartered in New York, New York.

How the Company Makes Money

BrightSpire Capital generates revenue primarily through the collection of rental income from its owned properties, which constitutes a significant portion of its earnings. Additionally, the company earns income from interest on loans it provides to real estate owners and operators, which is a key revenue stream. BrightSpire may also engage in property management and leasing services, further contributing to its revenue. The company's financial performance is bolstered by partnerships with institutional investors and real estate operators, which allow it to access a broader range of investment opportunities and enhance its capital structure. Furthermore, BrightSpire's focus on strategic acquisitions and asset management allows it to optimize property values and increase cash flow, driving profitability.

BrightSpire Capital Financial Statement Overview

Summary

BrightSpire Capital shows mixed financial performance. While there are strong gross profit margins and improved cash flow, challenges remain with declining revenue and negative net income, impacting profitability. The balance sheet reflects improved leverage but still shows profitability concerns with a negative return on equity.

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	326.79M	347.22M	392.11M	358.54M	323.09M	424.35M
Gross Profit	165.56M	159.42M	192.16M	193.07M	191.86M	212.37M
EBITDA	40.06M	-66.81M	35.91M	112.52M	101.59M	-142.60M
Net Income	-36.53M	-131.98M	-15.55M	45.79M	-101.05M	-353.30M
Balance Sheet
Total Assets	3.30B	3.72B	4.20B	4.75B	5.64B	6.21B
Cash, Cash Equivalents and Short-Term Investments	113.38M	302.17M	257.51M	306.32M	259.72M	485.21M
Total Debt	415.18M	2.52B	3.66B	3.19B	4.87B	4.66B
Total Liabilities	2.34B	2.68B	2.92B	3.36B	4.15B	4.25B
Stockholders Equity	976.41M	1.05B	1.28B	1.39B	1.46B	1.67B
Cash Flow
Free Cash Flow	82.50M	103.41M	137.62M	125.28M	-21.27M	96.36M
Operating Cash Flow	82.50M	103.41M	137.62M	125.28M	-21.27M	96.36M
Investing Cash Flow	-10.65M	313.08M	384.16M	89.34M	-555.79M	1.00B
Financing Cash Flow	-289.09M	-327.95M	-558.60M	-161.45M	384.36M	-754.06M

BrightSpire Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRSP, the sentiment is Positive. The current price of 5.68 is above the 20-day moving average (MA) of 5.47, above the 50-day MA of 5.36, and above the 200-day MA of 5.17, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 66.28 is Neutral, neither overbought nor oversold. The STOCH value of 84.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRSP.

BrightSpire Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTO	66 Neutral	$582.38M	―	-5.80%	8.83%	23.84%	-312.04%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
OLP	60 Neutral	$434.81M	15.57	10.91%	8.65%	7.71%	-5.37%
GOOD	59 Neutral	$534.62M	59.40	5.96%	11.16%	4.95%	-6.49%
AHH	56 Neutral	$533.82M	49.26	4.09%	9.97%	-39.94%	―
PKST	56 Neutral	$513.97M	―	-31.72%	5.42%	-16.50%	-640.43%
BRSP	53 Neutral	$731.69M	―	-3.58%	11.27%	-12.57%	70.50%

BrightSpire Capital Corporate Events

BrightSpire Capital’s Optimistic Earnings Call Highlights

BrightSpire Capital Inc.’s recent earnings call conveyed a generally positive sentiment, driven by strong loan origination activity and a significant reduction in watch list exposure. The company also noted improvements in the commercial real estate market. However, there were some challenges, such as a slight decrease in book value and issues within the REO portfolio, particularly concerning the San Jose hotel. Despite these setbacks, the overall outlook remains optimistic due to the progress in loan originations and portfolio management.

BrightSpire Capital Reports Q3 2025 Financial Results

BrightSpire Capital, Inc. is a leading publicly traded commercial real estate credit REIT, specializing in originating, acquiring, financing, and managing a diversified portfolio of commercial real estate debt investments and net leased properties primarily in the United States.