BrightSpire Capital (BRSP) AI Stock Analysis

• Market Cap: $688.97M
• Dividend Yield: 12.08%
• Average Volume (3M): 680.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• 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: 658,639
• 30 Day Avg. Volume: 680,380
• 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: 3.86
• Enterprise Value/Revenue: 8.04
• Enterprise Value/Gross Profit: 14.08
• Enterprise Value/Ebitda: 20.17
• 1Y Price Target: $5.75
• Price Target Upside: 8.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $5.50 ▲(3.77% Upside)

BrightSpire Capital's overall stock score reflects a combination of strong cash flow and attractive dividend yield, offset by profitability challenges and a negative P/E ratio. The earnings call provided a balanced view of achievements and ongoing challenges, while technical indicators suggest a stable but cautious outlook.

Positive Factors

Cash Generation

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

Loan Portfolio Growth

Positive net loan growth suggests effective portfolio management and potential for increased interest income, supporting long-term revenue stability.

Liquidity Position

A strong liquidity position enhances the company's ability to meet obligations and invest in growth opportunities, ensuring operational resilience.

Negative Factors

Declining Revenue

Declining revenue indicates potential challenges in market conditions or competitiveness, which could impact long-term growth prospects if not addressed.

Negative Profitability

Negative profitability highlights ongoing challenges in cost management and revenue generation, which may affect the company's ability to sustain operations and growth.

Asset Impairments

Significant asset impairments reflect potential mismanagement or adverse market conditions, impacting asset value and financial health.

BrightSpire Capital Business Overview & Revenue Model

Company Description

BrightSpire Capital (BRSP) is a diversified real estate investment trust (REIT) focused on acquiring, financing, and managing a portfolio of commercial real estate assets across various sectors, including office, industrial, and multifamily properties. The company aims to provide attractive risk-adjusted returns to its investors through strategic investments and effective asset management, leveraging its extensive market expertise and relationships within the real estate industry.

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 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: Positive
• Last Price: 5.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.3 is above the 20-day moving average (MA) of 5.30, below the 50-day MA of 5.46, and above the 200-day MA of 5.14, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 47.95 is Neutral, neither overbought nor oversold. The STOCH value of 68.69 is Neutral, 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
OLP	76 Outperform	$451.01M	16.15	9.16%	8.63%	5.57%	-14.50%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AHH	59 Neutral	$684.11M	73.37	3.55%	9.22%	-25.73%	―
GOOD	56 Neutral	$608.99M	31.82	8.51%	10.47%	5.85%	―
BRSP	55 Neutral	$688.97M	―	-2.41%	12.08%	-14.73%	79.63%
CTO	52 Neutral	$521.76M	-12.23	-5.66%	9.41%	22.26%	-328.46%
PKST	50 Neutral	$468.72M	―	-35.52%	5.83%	-6.69%	-118.66%

BrightSpire Capital Corporate Events

BrightSpire Capital Reports Q2 2025 Financial Results

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

BrightSpire Capital’s Earnings Call: A Balanced Outlook

BrightSpire Capital Inc. recently held its earnings call, revealing a mix of positive and negative developments. The company showed progress in reducing watch list loans and maintaining liquidity, yet faced challenges with GAAP net losses and specific REO properties. The sentiment during the call was balanced, with cautious optimism for future growth.