NasdaqGM:RILY

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

B. Riley Financial, Inc., through its subsidiaries, provides collaborative financial services and solutions in North America, Australia, and Europe. More Details


Snowflake Analysis

Proven track record second-rate dividend payer.


Similar Companies

Share Price & News

How has B. Riley Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RILY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

RILY

1.6%

US Capital Markets

1.3%

US Market


1 Year Return

6.7%

RILY

7.6%

US Capital Markets

15.8%

US Market

Return vs Industry: RILY exceeded the US Capital Markets industry which returned 2.5% over the past year.

Return vs Market: RILY underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

RILYIndustryMarket
7 Day-4.2%1.6%1.3%
30 Day-6.9%-4.5%-4.1%
90 Day15.8%2.2%8.4%
1 Year13.9%6.7%10.3%7.6%18.4%15.8%
3 Year68.6%44.8%18.5%9.4%38.2%29.0%
5 Year221.1%159.5%70.7%48.9%84.9%64.0%

Price Volatility Vs. Market

How volatile is B. Riley Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is B. Riley Financial undervalued compared to its fair value and its price relative to the market?

19.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RILY ($25.2) is trading above our estimate of fair value ($7.88)

Significantly Below Fair Value: RILY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RILY is good value based on its PE Ratio (19.3x) compared to the US Capital Markets industry average (21.9x).

PE vs Market: RILY is poor value based on its PE Ratio (19.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RILY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RILY is good value based on its PB Ratio (2.1x) compared to the US Capital Markets industry average (4.2x).


Next Steps

Future Growth

How is B. Riley Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.1%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as B. Riley Financial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has B. Riley Financial performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RILY has a high level of non-cash earnings.

Growing Profit Margin: RILY's current net profit margins (6.7%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: RILY's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: RILY's earnings growth over the past year (39.4%) exceeds its 5-year average (19.8% per year).

Earnings vs Industry: RILY earnings growth over the past year (39.4%) exceeded the Capital Markets industry 6.1%.


Return on Equity

High ROE: RILY's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is B. Riley Financial's financial position?


Financial Position Analysis

Short Term Liabilities: RILY's short term assets ($1.8B) exceed its short term liabilities ($900.3M).

Long Term Liabilities: RILY's short term assets ($1.8B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: RILY's debt to equity ratio (503.4%) is considered high.

Reducing Debt: RILY's debt to equity ratio has increased from 0.1% to 503.4% over the past 5 years.

Debt Coverage: RILY's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if RILY's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is B. Riley Financial current dividend yield, its reliability and sustainability?

8.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RILY's dividend (8.33%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: RILY's dividend (8.33%) is in the top 25% of dividend payers in the US market (4.94%)


Stability and Growth of Payments

Stable Dividend: RILY has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RILY's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.1%), RILY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Bryant Riley (53 yo)

2.17yrs

Tenure

US$4,909,962

Compensation

Mr. Bryant Richard Riley serves as the Chairman of the Board at B. Riley Principal Merger Corp. II. Mr. Riley is Director at Select Interior Concepts, Inc. since November 22, 2019. Mr. Riley has been a Dir ...


CEO Compensation Analysis

Compensation vs Market: Bryant's total compensation ($USD4.91M) is above average for companies of similar size in the US market ($USD3.05M).

Compensation vs Earnings: Bryant's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bryant Riley
Chairman & Co-CEO2.17yrsUS$4.91m19.21%
$ 120.3m
Thomas Kelleher
Co-CEO & Director4.92yrsUS$4.90m2.26%
$ 14.2m
Kenneth Young
President2.17yrsUS$4.08m0.40%
$ 2.5m
Phillip Ahn
CFO & COO7.42yrsUS$2.56m0.31%
$ 1.9m
Alan Forman
Executive VP5.33yrsUS$1.95m0.18%
$ 1.1m
Todd Sims
President of B. Riley Venture Investmentsno dataUS$106.13k0.046%
$ 288.0k
Andrew Moore
Chief Executive Officer of B. Riley FBR2.17yrsUS$2.90m0.43%
$ 2.7m
Daniel Shribman
Chief Investment Officer1yrno datano data
Howard Weitzman
Chief Accounting Officer & Senior VP10.75yrsno data0.10%
$ 627.3k
Perry Mandarino
Head of Corporate Finance & Senior MD3.83yrsno datano data
Jen Arnett
Vice President of Marketing0.67yrno datano data
Robert Callaway
Head of Oil & Gas & Vice President7.5yrsno datano data

2.2yrs

Average Tenure

53yo

Average Age

Experienced Management: RILY's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bryant Riley
Chairman & Co-CEO2.17yrsUS$4.91m19.21%
$ 120.3m
Thomas Kelleher
Co-CEO & Director4.92yrsUS$4.90m2.26%
$ 14.2m
Robert Antin
Independent Director3.25yrsUS$108.63k1.61%
$ 10.1m
Randall Paulson
Independent Director0.25yrno data0.14%
$ 858.2k
Mikel Williams
Independent Director4.92yrsUS$118.63k0.24%
$ 1.5m
Michael Sheldon
Independent Director3.17yrsUS$103.63k0.071%
$ 445.6k
Robert D'Agostino
Independent Director4.92yrsUS$117.46k0.53%
$ 3.3m
Marion Walters
Independent Director1.17yrsUS$67.70k0.0088%
$ 55.2k

4.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: RILY's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RILY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

B. Riley Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: B. Riley Financial, Inc.
  • Ticker: RILY
  • Exchange: NasdaqGM
  • Founded: 1973
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$626.138m
  • Shares outstanding: 25.45m
  • Website: https://www.brileyfin.com

Number of Employees


Location

  • B. Riley Financial, Inc.
  • 11100 Santa Monica Boulevard
  • Suite 800
  • Los Angeles
  • California
  • 90025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RILYNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 2009
RILY.PNasdaqGM (Nasdaq Global Market)6.875 DP SH PF AUSUSDOct 2019
RILY.LNasdaqGM (Nasdaq Global Market)7.375 DP CUM BUSUSDSep 2020

Biography

B. Riley Financial, Inc., through its subsidiaries, provides collaborative financial services and solutions in North America, Australia, and Europe. The Capital Markets segments offers range of investment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/28 23:48
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.