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DigitalBridge Group (DBRG)
NYSE:DBRG
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DigitalBridge Group
(NYSE:DBRG)
Rating:71Outperform
Price Target:
$12.50
▲(15.00%Upside)
Positive Factors
Financial Performance
DigitalBridge reported upside financial results and maintained its guidance, indicating stability and potential growth.
Future Growth
The company has a significant backlog of capital expected to convert to fee-earning assets, providing visibility into future growth.
Negative Factors
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.
Profitability Concerns
There is a concern about data center build costs increasing due to tariffs, impacting profitability.
DigitalBridge Group (DBRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.07B
Dividend Yield0.36%
Average Volume (3M)3.07M
Price to Earnings (P/E)34.9
Beta (1Y)1.80
Revenue Growth-56.43%
EPS Growth-82.25%
CountryUS
Employees324
SectorReal Estate
Sector Strength63
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.01
Shares Outstanding176,116,330
10 Day Avg. Volume2,189,308
30 Day Avg. Volume3,070,863
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.05
Price to Sales (P/S)0.00
P/FCF Ratio15.41
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit3.91
Enterprise Value/Ebitda1.14
Forecast
1Y Price Target
$16.25Price Target Upside49.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
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 a combination of investment management fees, asset appreciation, and operational revenues from its portfolio of digital infrastructure assets. The company earns recurring management fees by providing investment management services to institutional investors and funds focused on digital infrastructure. Additionally, as an owner and operator of digital infrastructure assets, DigitalBridge generates revenue from leasing space within its data centers, renting cell tower space to telecom companies, and providing fiber network services. Significant partnerships with telecom operators and technology companies further enhance its earnings potential by ensuring high occupancy rates and stable, long-term contracts. The company's ability to identify and invest in high-growth digital infrastructure opportunities is a critical factor contributing to its financial success.
DigitalBridge Group Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 29.40%|
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.DigitalBridge Group Financial Statement Overview
Summary
DigitalBridge Group presents a generally positive financial outlook with strong profitability and cash flow metrics. The company demonstrates good cost management and operational efficiency, with a stable financial structure as evidenced by low leverage. However, revenue volatility and past declines are concerns that need to be addressed for long-term growth. Overall, the financial health is sound, supported by robust cash flows and a solid balance sheet.Income Statement
The income statement shows a mixed performance with a positive TTM gross profit margin of 77.66% and a net profit margin of 19.71%, indicating efficient cost management and profitability. However, there's a significant revenue decline from 2023 to 2024, underscoring volatility in revenue streams. The EBITDA margin is healthy at 38.19%, reflecting good operational efficiency. Despite these strengths, the revenue growth rate has been negative, which is a concern for long-term sustainability.62
Positive
Balance Sheet
The balance sheet indicates a solid financial structure with a debt-to-equity ratio of 0.17, suggesting low leverage and reduced financial risk. The equity ratio of 57.03% signifies a strong equity position relative to assets. Return on equity for the TTM is 5.81%, showing moderate returns for shareholders. Overall, the balance sheet is robust with manageable liabilities and strong equity, providing stability despite past fluctuations.68
Positive
Cash Flow
The cash flow statement reflects a strong cash position with a TTM free cash flow to net income ratio of 1.20, indicating excellent cash conversion. Operating cash flow to net income stands at 1.21, showcasing efficient cash operations. The TTM free cash flow growth rate is significant, highlighting a positive cash trajectory. These metrics indicate effective cash management and operational efficiency, although past years showed some volatility.74
Positive
| 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 |
| 449.02M | 462.38M | 784.73M | 721.24M | 621.36M | 750.35M | EBIT |
| 133.89M | 131.87M | 304.87M | -199.20M | -124.63M | -704.75M | EBITDA |
| 220.75M | 218.96M | 426.82M | 220.39M | 415.06M | 54.51M | Net Income Common Stockholders |
| 113.93M | 70.52M | 185.28M | -421.29M | -216.82M | -2.46B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 247.35M | 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 |
| 165.22M | 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 |
| 28.22M | -11.22M | -979.04M | -1.91B | 146.56M | -1.93B | Financing Cash Flow |
| -64.25M | -90.84M | 58.15M | 923.78M | 411.26M | 1.37B |
DigitalBridge Group Technical Analysis
Neutral
10.87
Price Trends
9.23
Positive
9.89
Positive
11.53
Negative
Market Momentum
0.53
Positive
57.94
Neutral
34.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBRG, the sentiment is Neutral. The current price of 10.87 is above the 20-day moving average (MA) of 10.68, above the 50-day MA of 9.23, and below the 200-day MA of 11.53, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 34.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 1 New Risks
1.
Our use of artificial intelligence could expose us to various risks. Q4, 2024
DigitalBridge Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.23B | 15.15 | 6.74% | 6.64% | 12.64% | 49.11% | |
71 Outperform | $2.07B | 34.92 | 10.58% | 0.36% | -56.43% | -82.25% | |
70 Outperform | $2.40B | 28.87 | 6.48% | 3.81% | 6.18% | -72.21% | |
64 Neutral | $675.61M | 50.14 | 7.51% | 8.32% | 3.01% | ― | |
63 Neutral | $1.07B | 10.08 | 4.51% | 4.63% | 1.54% | ― | |
61 Neutral | $2.82B | 10.89 | 0.42% | 8438.96% | 5.74% | -20.95% | |
56 Neutral | $1.71B | ― | -13.01% | 13.41% | 16.69% | 39.04% |
* Real Estate Sector Average
Performance Comparison
DBRG
DigitalBridge Group
10.87
-2.03
-15.74%
GOOD
Gladstone Commercial
14.39
1.13
8.52%
SAFE
Safehold
15.24
-3.16
-17.17%
AAT
American Assets
19.63
-0.59
-2.92%
UE
Urban Edge Properties
18.46
1.48
8.72%
GNL
Global Net Lease
7.57
1.11
17.18%
DigitalBridge Group Corporate Events
Executive/Board ChangesShareholder Meetings
DigitalBridge Group Holds 2025 Annual Stockholders Meeting
Positive
May 29, 2025
On May 23, 2025, DigitalBridge Group, Inc. conducted its 2025 Annual Meeting of Stockholders, where key proposals were voted on. The election of directors resulted in several individuals being appointed to the board until the 2026 meeting. Additionally, the stockholders approved the executive compensation plan and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to influence the company’s governance and financial oversight positively.
The most recent analyst rating on (DBRG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on DigitalBridge Group stock, see the DBRG Stock Forecast page.
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.