Broadmark Realty Capital
Market Cap
US$1.4b
Last Updated
2021/02/25 01:18 UTC
Data Sources
Company Financials +
Executive Summary
Broadmark Realty Capital Inc. provides short-term and first deed of trust loans secured by real estate to fund the acquisition, renovation, rehabilitation, and development of residential and commercial properties in the United States. More Details
Rewards
Risk Analysis
Dividend of 7.73% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Flawless balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Broadmark Realty Capital's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BRMK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: BRMK's weekly volatility has decreased from 9% to 3% over the past year.
Market Performance
7 Day Return
1.9%
BRMK
4.4%
US Mortgage REITs
-1.4%
US Market
1 Year Return
-11.2%
BRMK
-22.8%
US Mortgage REITs
37.1%
US Market
Return vs Industry: BRMK exceeded the US Mortgage REITs industry which returned -25.7% over the past year.
Return vs Market: BRMK underperformed the US Market which returned 34.1% over the past year.
Shareholder returns
| BRMK | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 4.4% | -1.4% |
| 30 Day | 2.4% | 6.3% | 1.6% |
| 90 Day | 4.2% | 10.6% | 7.3% |
| 1 Year | -3.1%-11.2% | -14.2%-22.8% | 40.2%37.1% |
| 3 Year | n/a | 14.5%-16.3% | 62.5%52.1% |
| 5 Year | n/a | 61.4%-6.2% | 133.9%108.0% |
Long-Term Price Volatility Vs. Market
How volatile is Broadmark Realty Capital's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Are Institutions Heavily Invested In Broadmark Realty Capital Inc.'s (NYSE:BRMK) Shares?3 months ago | Simply Wall St
Reflecting on Broadmark Realty Capital's (NYSE:BRMK) Share Price Returns Over The Last Year5 months ago | Simply Wall St
What Is The Ownership Structure Like For Broadmark Realty Capital Inc. (NYSE:BRMK)?Valuation
Is Broadmark Realty Capital undervalued compared to its fair value and its price relative to the market?
43.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BRMK ($10.86) is trading below our estimate of fair value ($19.08)
Significantly Below Fair Value: BRMK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BRMK is poor value based on its PE Ratio (39.8x) compared to the US Mortgage REITs industry average (19.3x).
PE vs Market: BRMK is poor value based on its PE Ratio (39.8x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: BRMK is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: BRMK is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage REITs industry average (0.9x).
Next Steps
Future Growth
How is Broadmark Realty Capital forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
32.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BRMK's forecast earnings growth (32.6% per year) is above the savings rate (2%).
Earnings vs Market: BRMK's earnings (32.6% per year) are forecast to grow faster than the US market (20.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: BRMK's revenue (6.2% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: BRMK's revenue (6.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BRMK's Return on Equity is forecast to be low in 3 years time (11.5%).
Next Steps
Past Performance
How has Broadmark Realty Capital performed over the past 5 years?
1.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BRMK has high quality earnings.
Growing Profit Margin: BRMK's current net profit margins (20.1%) are lower than last year (96.8%).
Past Earnings Growth Analysis
Earnings Trend: BRMK's earnings have grown by 1.7% per year over the past 5 years.
Accelerating Growth: BRMK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BRMK had negative earnings growth (-26.1%) over the past year, making it difficult to compare to the Mortgage REITs industry average (-40.1%).
Return on Equity
High ROE: BRMK's Return on Equity (9%) is considered low.
Next Steps
Financial Health
How is Broadmark Realty Capital's financial position?
Financial Position Analysis
Short Term Liabilities: BRMK's short term assets ($1.0B) exceed its short term liabilities ($11.4M).
Long Term Liabilities: BRMK has no long term liabilities.
Debt to Equity History and Analysis
Debt Level: BRMK is debt free.
Reducing Debt: BRMK had no debt 5 years ago.
Debt Coverage: BRMK has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: BRMK has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Broadmark Realty Capital current dividend yield, its reliability and sustainability?
7.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BRMK's dividend (7.73%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: BRMK's dividend (7.73%) is in the top 25% of dividend payers in the US market (3.75%)
Stability and Growth of Payments
Stable Dividend: Too early to tell whether BRMK's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if BRMK's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (263.8%), BRMK's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BRMK's dividends in 3 years are not forecast to be well covered by earnings (96.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.9yrs
Average management tenure
CEO
Jeff Pyatt (60 yo)
no data
Tenure
US$8,039,071
Compensation
Mr. Jeffrey B. Pyatt, also known as Jeff, serves as President, Chief Executive Officer and Director at Broadmark Realty Capital Inc. Prior to that, he served as President of MgCo I from the time that he co...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD8.04M) is above average for companies of similar size in the US market ($USD3.68M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | no data | US$8.04m | 1.91% $ 27.5m | |
| CFO, Treasurer & Principal Accounting Officer | 1.17yrs | US$171.88k | no data | |
| Company Secretary & COO | 0.92yr | no data | 0.021% $ 304.0k | |
| Chief Legal Officer | 0.42yr | no data | no data | |
| Director of Sale & Marketing and Private Capital Markets | no data | no data | no data | |
| Director of Human Resources | 0.92yr | no data | no data | |
| Chief Credit Officer & Assistant Secretary | 0.92yr | no data | 0.0079% $ 113.7k | |
| Senior Vice President of Mid-Atlantic | 0.92yr | no data | no data | |
| Senior Vice President of Pacific Northwest | 0.92yr | no data | no data | |
| Senior Vice President of Southeast | 0.92yr | no data | no data | |
| Senior Vice President of Mountain West | 0.92yr | no data | no data | |
| Managing Director of Private Capital Markets | 1.08yrs | no data | no data |
0.9yrs
Average Tenure
40yo
Average Age
Experienced Management: BRMK's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | no data | US$8.04m | 1.91% $ 27.5m | |
| Non-Executive Chairman | 2.08yrs | US$8.66m | 0.11% $ 1.5m | |
| Independent Director | 2.08yrs | US$25.00k | 0.080% $ 1.2m | |
| Lead Independent Director | 2.08yrs | US$28.75k | no data | |
| Independent Director | 2.08yrs | US$22.50k | 0.47% $ 6.8m | |
| Independent Director | 2.08yrs | US$22.50k | 0.023% $ 325.8k | |
| Independent Director | 2.08yrs | US$22.50k | no data |
2.1yrs
Average Tenure
60yo
Average Age
Experienced Board: BRMK's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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
Broadmark Realty Capital Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Broadmark Realty Capital Inc.
- Ticker: BRMK
- Exchange: NYSE
- Founded: 2010
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Market Cap: US$1.436b
- Shares outstanding: 132.24m
- Website: https://www.broadmark.com
Number of Employees
Location
- Broadmark Realty Capital Inc.
- 1420 Fifth Avenue
- Suite 2000
- Seattle
- Washington
- 98101
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BRMK | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Nov 2019 |
Biography
Broadmark Realty Capital Inc. provides short-term and first deed of trust loans secured by real estate to fund the acquisition, renovation, rehabilitation, and development of residential and commercial pro...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/25 01:18 |
| End of Day Share Price | 2021/02/24 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.