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DigitalBridge Group (DBRG)
NYSE:DBRG
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DigitalBridge Group
(NYSE:DBRG)
66Neutral
Positive Factors
Financial Performance
DigitalBridge reported upside financial results and maintained its guidance, indicating stability and potential growth.
Strategic Growth
The company has a significant backlog of capital expected to convert to fee-earning assets, providing visibility into future growth.
Negative Factors
Cost Challenges
There is a concern about data center build costs increasing due to tariffs, impacting profitability.
Guidance Concerns
FRE conversion continues to be challenged, with a big guidance cut in Q3.
Market Challenges
Digital Bridge has found it necessary to partner with other funds and accept lower fee-generating assets, indicating challenges in raising fee-generating assets in the market.
DigitalBridge Group (DBRG) vs. S&P 500 (SPY)
Market Cap
$1.71B
Dividend Yield0.44%
Average Volume (3M)2.80M
Price to Earnings (P/E)28.8
Beta (1Y)1.48
Revenue Growth-56.43%
EPS Growth-82.25%
CountryUS
Employees324
SectorReal Estate
Sector Strength66
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.01
Shares Outstanding176,116,330
10 Day Avg. Volume2,245,119
30 Day Avg. Volume2,797,866
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.75
Price to Sales (P/S)0.00
P/FCF Ratio11.11
Enterprise Value/Market Cap0.68
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit1.94
Enterprise Value/Ebitda0.75
Forecast
1Y Price Target
$16.58Price Target Upside82.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
DigitalBridge Group Business Overview & Revenue Model
Company DescriptionDigitalBridge (NYSE: DBRG) is an infrastructure investment firm. It specializes in investing and operating businesses across the digital ecosystem including cell towers, data centers, fiber, small cells, edge infrastructure, digital infrastructure and real estate. DigitalBridge Group, Inc. was founded in 2009 and is headquartered in Boca Raton, Florida with additional offices in Los Angeles, California; New York, New York; Boston, Massachusetts; Denver, Colorado; London, United Kingdom; Senningerberg, Luxembourg and Singapore.
How the Company Makes MoneyDigitalBridge Group makes money primarily through its investments in digital infrastructure assets and the management of these assets. The company generates revenue from leasing space and capacity in data centers, charging fees for the use of cell towers and fiber networks, and providing managed services to its clients. Additionally, as an investment management firm, DigitalBridge earns management and performance fees from institutional investors who commit capital to its funds. The firm's strategic partnerships with telecommunications companies, technology firms, and other stakeholders in the digital landscape also play a crucial role in enhancing its earnings potential and expanding its market presence.
DigitalBridge Group Financial Statement Overview
Summary
DigitalBridge Group is on a path of improvement, evident from its reduction in debt and a return to profitability. However, the company faces challenges with declining revenue and cash flow stability. While the balance sheet reflects improved financial health, the income statement and cash flow metrics suggest that further efforts are needed to solidify growth and enhance cash flow consistency.Income Statement
The company has shown a declining trend in total revenue over recent years, with a significant drop in gross profit margin from previous highs. Despite a net loss in earlier years, the company managed to achieve a positive net income in 2024. While the EBIT and EBITDA margins have improved from negative values, they remain moderate compared to industry expectations.65
Positive
Balance Sheet
DigitalBridge Group has significantly reduced its debt levels, eliminating external debt by 2024, which improves its financial stability. The equity ratio is strong, suggesting prudent management of assets relative to equity. However, the return on equity remains moderate, indicating room for improvement in profitability relative to shareholder equity.70
Positive
Cash Flow
The company's operating cash flow has decreased significantly from previous highs, impacting the free cash flow generation. Although the company has achieved positive free cash flow in 2024, the growth rate is not robust, and prior volatility in free cash flow may pose risks. The ratio of operating cash flow to net income is reasonable, indicating a transition to more sustainable cash generation.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 578.08M | 607.03M | 821.38M | 1.14B | 965.80M | 1.24B |
| Gross Profit | |||||
| 602.65M | 462.38M | 784.73M | 721.24M | 621.36M | 750.35M |
| EBIT | |||||
| 133.89M | 131.87M | 304.87M | -199.20M | -124.63M | -704.75M |
| EBITDA | |||||
| 231.24M | 165.57M | 426.82M | 220.39M | 415.06M | 54.51M |
| Net Income Common Stockholders | |||||
| 190.69M | 70.52M | 185.28M | -421.29M | -216.82M | -2.46B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 252.14M | 302.15M | 345.33M | 918.25M | 1.60B | 703.54M |
| Total Assets | |||||
| 3.46B | 3.51B | 3.56B | 11.03B | 14.20B | 20.20B |
| Total Debt | |||||
| 412.58M | 339.71M | 420.82M | 5.45B | 4.86B | 7.79B |
| Net Debt | |||||
| 160.44M | 37.56M | 75.48M | 4.53B | 3.26B | 7.09B |
| Total Liabilities | |||||
| 941.38M | 1.02B | 1.05B | 6.46B | 8.93B | 12.91B |
| Stockholders Equity | |||||
| 1.82B | 1.96B | 1.81B | 1.66B | 2.15B | 2.50B |
| Cash Flow | Free Cash Flow | ||||
| 136.59M | 56.53M | 233.64M | -1.88B | -121.69M | -2.04B |
| Operating Cash Flow | |||||
| 137.43M | 60.12M | 233.64M | 262.58M | 248.24M | 89.89M |
| Investing Cash Flow | |||||
| 18.61M | -11.22M | -979.04M | -1.91B | 146.56M | -1.93B |
| Financing Cash Flow | |||||
| -78.83M | -90.84M | 58.15M | 923.78M | 411.26M | 1.37B |
DigitalBridge Group Technical Analysis
Positive
9.11
Price Trends
8.75
Positive
9.88
Negative
11.68
Negative
Market Momentum
0.10
Negative
58.81
Neutral
68.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBRG, the sentiment is Positive. The current price of 9.11 is above the 20-day moving average (MA) of 8.47, above the 50-day MA of 8.75, and below the 200-day MA of 11.68, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.81 is Neutral, neither overbought nor oversold. The STOCH value of 68.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DBRG.
DigitalBridge Group Risk Analysis
DigitalBridge Group disclosed 48 risk factors in its most recent earnings report. DigitalBridge Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DigitalBridge Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.20B | 14.76 | 6.74% | 6.88% | 12.64% | 49.11% | |
73 Outperform | $2.53B | 30.34 | 6.48% | 3.81% | 6.18% | -72.21% | |
66 Neutral | $1.71B | 28.83 | 10.58% | 0.44% | -56.43% | -82.25% | |
63 Neutral | $664.43M | 49.31 | 7.51% | 8.41% | 3.01% | ― | |
62 Neutral | $1.12B | 10.57 | 4.51% | 4.53% | 1.54% | ― | |
60 Neutral | $2.83B | 10.92 | 0.21% | 8543.15% | 5.98% | -17.76% | |
60 Neutral | $1.80B | ― | -13.01% | 12.70% | 16.69% | 39.04% |
* Real Estate Sector Average
Performance Comparison
DBRG
DigitalBridge Group
9.11
-4.95
-35.21%
GOOD
Gladstone Commercial
14.35
0.76
5.59%
SAFE
Safehold
15.30
-4.35
-22.14%
AAT
American Assets
19.50
-1.87
-8.75%
UE
Urban Edge Properties
18.76
2.00
11.93%
GNL
Global Net Lease
7.95
1.27
19.01%
DigitalBridge Group Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 8.45%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, successful fundraising, and strategic acquisitions, indicating resilience in digital infrastructure despite market volatility and some fundraising delays. However, concerns about trade policy impacts and a reversal in carried interest were noted.Q1-2025 Updates
Positive Updates
Strong Financial Performance
DigitalBridge reported fee revenues of $90 million and FRE of $35 million, up almost 80% year-over-year. Distributable earnings were $55 million, including a $34 million gain from the partial realization of the DataBank investment.
Successful Fundraising
The company raised $1.2 billion in the quarter, with significant commitments to the flagship DigitalBridge Partner strategy, amounting to over 70% of total fundraising. The company also highlighted a strong pipeline in private credit, with over 100 accounts evaluating the strategy.
Zayo Acquisition
DigitalBridge supported Zayo's $4.5 billion acquisition of Crown Castle's fiber business, increasing Zayo's scale by over 50% and adding 90,000 route miles to its existing network.
Resilience of Digital Infrastructure
Digital infrastructure proved resilient amidst market volatility, with long-term contracts and inflation protection contributing to stability. The company highlighted the low correlation of infrastructure to other asset classes.
Growth in Private Credit
DigitalBridge's private credit platform showed significant growth potential, with a pipeline of $13 billion in new loan origination opportunities and plans to deploy up to $2 billion in 2025.
Negative Updates
Market Volatility and Fundraising Delays
Some final fundraising decisions were delayed due to LPs monitoring uncertain market conditions. However, the company remains confident in achieving its goals for 2025.
Impact of Trade Policy on Data Centers
Trade tariffs and policy could impact data center construction costs by 3% to 7%, but the company expects to recover most of these costs in new contracts.
Reversal of Carried Interest
A $5 million reversal of carried income was reported due to net increases in the fair value of portfolio assets being slightly below the preferred return hurdle on certain funds.
Company Guidance
During the first quarter of 2025 earnings call, DigitalBridge Group outlined its financial performance, highlighting key metrics that indicate strong growth and resilience. The company reported fee revenues of $90 million, reflecting an impressive 24% increase over the first quarter of 2024, and fee-related earnings (FRE) of $35 million, up nearly 80% year-over-year. Additionally, DigitalBridge raised $1.2 billion in the quarter, primarily driven by commitments to its flagship strategy, and increased its fee-earning equity under management (FEEUM) to $37.3 billion, marking a 15% rise from the previous year. This growth was supported by a robust pipeline in private credit, with expectations to deploy up to $2 billion in 2025. Despite some short-term market volatility impacting final fundraising decisions, the company remains confident in achieving its 2025 goals, supported by the intrinsic resilience of its diversified digital infrastructure portfolio.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.