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Bridgemarq Real Estate Services, Inc. (TSE:BRE)
TSX:BRE
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Bridgemarq Real Estate Services (BRE) AI Stock Analysis

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TSE:BRE

Bridgemarq Real Estate Services

(TSX:BRE)

Rating:59Neutral
Price Target:
C$16.00
▲(4.03%Upside)
Bridgemarq Real Estate Services demonstrates strong revenue growth and positive cash flow, but is hindered by financial instability and profitability challenges. Technical indicators are favorable in the short term, but valuation metrics are less attractive due to negative earnings. The earnings call provides optimism with strategic growth initiatives, though market challenges persist. Recent corporate events, like executive changes and dividend declarations, add a positive outlook.

Bridgemarq Real Estate Services (BRE) vs. iShares MSCI Canada ETF (EWC)

Bridgemarq Real Estate Services Business Overview & Revenue Model

Company DescriptionBridgemarq Real Estate Services (BRE) is a leading real estate services company operating in Canada. It specializes in providing support services to real estate brokers and agents through its franchise networks. The company operates under various real estate brands, offering a comprehensive suite of services including training, operational support, and innovative marketing solutions to enhance the productivity and success of its franchisees.
How the Company Makes MoneyBridgemarq Real Estate Services generates revenue primarily through franchise fees and royalties from its network of real estate brokerages. These fees are typically based on a percentage of the gross revenue generated by the agents within its franchise networks. The company also earns income from providing ancillary services such as training programs, technology solutions, and marketing support to its franchisees. Strategic partnerships and collaborations with other real estate service providers and technology companies further contribute to its revenue streams, enhancing the value proposition offered to its franchisees and helping to drive overall business growth.

Bridgemarq Real Estate Services Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: 8.45%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and improvements in net earnings, driven by strategic acquisitions and strong market performance in Quebec. However, challenges in major real estate markets such as Toronto and Vancouver, along with a declining realtor count and high payout ratio, present notable concerns.
Q1-2025 Updates
Positive Updates
Significant Revenue Increase
Revenue for Q1 was $78 million, a substantial increase from $11.9 million in the same quarter last year, reflecting the acquisition of brokerage businesses.
Net Earnings Improvement
The company reported net earnings of $6 million compared to a net loss of $400,000 in the previous year, driven by a $5.7 million gain from the fair valuation of exchangeable units.
Strong Quebec Market Performance
The Quebec residential real estate market saw a 22% increase in Q1, with a 13% rise in unit sales and a 9% increase in average selling price.
Launch of New Advertising Campaign
The 'Proudly Canadian' national advertising campaign was launched, enhancing brand visibility and providing digital assets for agents.
Negative Updates
Decline in Realtor Count
The number of realtors in the franchise and brokerage network declined by 1%, although this was better than the overall market decline of 3%.
Contraction in Canadian Residential Real Estate Market
The market contracted by 7% in Q1 compared to the same period in 2024, with a 2% decline in average selling price and a 5% decrease in unit sales.
Challenges in Greater Toronto and Vancouver Markets
The Greater Toronto Area market was down 23% year-over-year, and the Greater Vancouver market decreased by 12%.
High Payout Ratio
The payout ratio remained above 100%, and the company drew $4 million on its operating line, reflecting financial strain.
Company Guidance
During the Bridgemarq Real Estate Services Inc. 2025 First Quarter Results Conference Call, the company reported significant financial growth and provided detailed insights into market conditions and operational developments. Revenue for Q1 surged to $78 million from $11.9 million the previous year, largely due to the acquisition of brokerage businesses. The company declared a dividend of $0.1125 per share, maintaining an annualized rate of $1.35 per share. The number of realtors in the network slightly declined by 1% to 20,845, which was better than the overall market's 3% decline. Net earnings improved to $6 million, a turnaround from a $400,000 loss in 2024, bolstered by a $5.7 million gain on exchangeable units. The Canadian residential market contracted by 7%, with notable declines in the Greater Toronto Area (23%) and Greater Vancouver (12%), while Quebec showed a 22% increase. Despite market challenges, the company emphasized its strategic focus on technology and AI to enhance realtor productivity and client engagement and highlighted its successful national advertising campaigns.

Bridgemarq Real Estate Services Financial Statement Overview

Summary
Bridgemarq Real Estate Services exhibits strong revenue growth but faces profitability challenges with negative net income and low margins. The balance sheet is weak with negative equity and high debt, though positive free cash flow provides some stability.
Income Statement
55
Neutral
The company's revenue shows a positive growth trend with a significant increase in the TTM period compared to the previous annual period. However, the net profit margin is negative, indicating persistent net losses. Gross profit margin is stable, but the EBIT and EBITDA margins are relatively low, suggesting limited operational efficiency and profitability.
Balance Sheet
40
Negative
The company has a negative stockholders' equity, which is concerning as it indicates more liabilities than assets. The debt-to-equity ratio is not applicable due to negative equity, but high total debt compared to assets suggests potential financial instability. Lack of equity limits financial flexibility and increases risk exposure.
Cash Flow
60
Neutral
Free cash flow is positive and growing, which is a strength and indicates good cash generation capability. However, the operating cash flow to net income ratio is high due to negative net income, which may not be sustainable in the long term. Positive free cash flow is a reassuring aspect amidst profitability challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue350.67M48.45M49.87M50.20M40.34M
Gross Profit65.87M47.42M48.66M49.17M39.62M
EBITDA18.52M23.11M27.67M28.36M23.33M
Net Income-10.32M4.00M20.97M4.76M767.00K
Balance Sheet
Total Assets157.44M64.89M72.63M78.60M88.96M
Cash, Cash Equivalents and Short-Term Investments9.09M5.74M6.42M6.22M9.16M
Total Debt87.16M67.02M66.96M68.42M73.38M
Total Liabilities237.69M122.01M120.94M135.08M137.40M
Stockholders Equity-80.25M-57.12M-48.31M-56.48M-48.44M
Cash Flow
Free Cash Flow15.57M12.79M15.08M15.14M18.68M
Operating Cash Flow17.10M13.67M15.10M15.14M19.87M
Investing Cash Flow2.48M-1.48M-598.00K-275.00K-3.11M
Financing Cash Flow-16.24M-12.87M-14.30M-17.80M-12.80M

Bridgemarq Real Estate Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.38
Price Trends
50DMA
14.78
Positive
100DMA
14.13
Positive
200DMA
14.01
Positive
Market Momentum
MACD
0.19
Negative
RSI
64.42
Neutral
STOCH
81.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BRE, the sentiment is Positive. The current price of 15.38 is above the 20-day moving average (MA) of 15.11, above the 50-day MA of 14.78, and above the 200-day MA of 14.01, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 64.42 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BRE.

Bridgemarq Real Estate Services Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$12.03B56.4811.61%<0.01%20.02%78.29%
73
Outperform
C$1.75B7.1215.90%0.08%16.22%39.56%
70
Outperform
$9.78B48.2911.57%<0.01%17.07%42.36%
68
Neutral
C$2.37B178.142.13%1.09%-23.26%-644.01%
64
Neutral
C$1.51B-23.35%0.28%7.94%-12.23%
63
Neutral
kr15.23B19.292.22%2.72%1.59%146.99%
59
Neutral
$145.86M4.67%9.06%763.30%-156.55%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BRE
Bridgemarq Real Estate Services
15.38
3.38
28.19%
TSE:FSV
FirstService
264.66
23.47
9.73%
TSE:CIGI
Colliers International Group
193.24
1.15
0.60%
TSE:MEQ
Mainstreet Equity
187.94
-3.56
-1.86%
TSE:SVI
Storagevault Canada
4.61
-0.13
-2.74%
TSE:AIF
Altus Group
55.42
-1.93
-3.37%

Bridgemarq Real Estate Services Corporate Events

Dividends
Bridgemarq Real Estate Services Declares Cash Dividend
Positive
Jul 18, 2025

Bridgemarq Real Estate Services announced a cash dividend of $0.1125 per restricted voting share, payable on August 29, 2025, to shareholders of record on July 31, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and could influence its market positioning by demonstrating financial stability and shareholder returns.

The most recent analyst rating on (TSE:BRE) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Bridgemarq Real Estate Services stock, see the TSE:BRE Stock Forecast page.

Dividends
Bridgemarq Real Estate Services Declares Cash Dividend
Positive
Jun 18, 2025

Bridgemarq Real Estate Services Inc. has declared a cash dividend of $0.1125 per restricted voting share, payable on July 31, 2025, to shareholders recorded by June 30, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and could enhance its attractiveness to investors in the real estate services sector.

The most recent analyst rating on (TSE:BRE) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Bridgemarq Real Estate Services stock, see the TSE:BRE Stock Forecast page.

Executive/Board Changes
Bridgemarq Real Estate Services Appoints New CFO
Positive
Jun 3, 2025

Bridgemarq Real Estate Services Inc. has announced the appointment of Wallace Wang as the new Chief Financial Officer, effective July 1, 2025. Wang, who brings experience from Brookfield Asset Management, will succeed Glen McMillan, who is assisting with the transition. CEO Spencer Enright expressed confidence in Wang’s ability to continue the company’s strong financial operations and support its long-term growth initiatives.

The most recent analyst rating on (TSE:BRE) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Bridgemarq Real Estate Services stock, see the TSE:BRE Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Bridgemarq Real Estate Services Announces Board Elections and Strategic Approvals at Annual Meeting
Positive
May 13, 2025

Bridgemarq Real Estate Services announced the results of its annual meeting of shareholders, where several directors were elected to the board, and the appointment of Ernst & Young LLP as external auditors was approved. Additionally, a new stock option plan was approved to align the interests of officers and employees with those of shareholders, reflecting a strategic move to enhance stakeholder engagement and long-term company interests.

The most recent analyst rating on (TSE:BRE) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Bridgemarq Real Estate Services stock, see the TSE:BRE Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
Bridgemarq Real Estate Services Reports Strong Q1 2025 Results and Declares Dividend
Positive
May 13, 2025

Bridgemarq Real Estate Services reported a significant increase in revenue for the first quarter of 2025, amounting to $78.0 million, largely due to the acquisition of brokerage businesses in 2024. The company also announced a monthly dividend, reflecting its improved financial performance and strategic positioning in the Canadian real estate market. Despite a national decline in real estate transactions, Bridgemarq’s expansion and ability to attract high-performing professionals position it well for continued growth.

The most recent analyst rating on (TSE:BRE) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Bridgemarq Real Estate Services stock, see the TSE:BRE Stock Forecast page.

Shareholder MeetingsFinancial Disclosures
Bridgemarq to Host Q1 Financial Results Call and Annual Shareholders’ Meeting
Neutral
May 6, 2025

Bridgemarq Real Estate Services has announced it will host a conference call on May 13, 2025, to discuss its first quarter financial results. The company will also hold its annual shareholders’ meeting on the same day, conducted as a virtual live audio webcast. These events are significant for stakeholders as they provide insights into the company’s financial performance and strategic direction.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 19, 2025