NYSE:BSIG

Stock Analysis Report

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Market Cap

US$2.0b

Last Updated

2021/07/30 00:49 UTC

Data Sources

Company Financials +

Executive Summary

BrightSphere Investment Group Inc. is a publically owned asset management holding company. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has BrightSphere Investment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BSIG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BSIG's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.3%

BSIG

1.6%

US Capital Markets

0.8%

US Market


1 Year Return

79.7%

BSIG

59.3%

US Capital Markets

37.5%

US Market

Return vs Industry: BSIG exceeded the US Capital Markets industry which returned 55% over the past year.

Return vs Market: BSIG exceeded the US Market which returned 36.5% over the past year.


Shareholder returns

BSIGIndustryMarket
7 Day4.3%1.6%0.8%
30 Day4.8%1.0%1.0%
90 Day9.8%5.8%3.8%
1 Year80.1%79.7%62.8%59.3%39.7%37.5%
3 Year111.3%97.9%78.1%65.1%64.4%54.1%
5 Year100.3%78.9%176.6%142.9%124.9%100.0%

Long-Term Price Volatility Vs. Market

How volatile is BrightSphere Investment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BrightSphere Investment Group undervalued compared to its fair value and its price relative to the market?

7.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BSIG ($24.72) is trading above our estimate of fair value ($15.76)

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


Price To Earnings Ratio

PE vs Industry: BSIG is good value based on its PE Ratio (7.1x) compared to the US Capital Markets industry average (13.2x).

PE vs Market: BSIG is good value based on its PE Ratio (7.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BSIG is good value based on its PB Ratio (5.9x) compared to the US Capital Markets industry average (61.5x).


Future Growth

How is BrightSphere Investment Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-11.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BSIG's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if BSIG's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BSIG's revenue is expected to decline over the next 3 years (-11.8% per year).

High Growth Revenue: BSIG's revenue is forecast to decline over the next 3 years (-11.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BSIG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has BrightSphere Investment Group performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: BSIG's current net profit margins (39.8%) are higher than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: BSIG's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: BSIG's earnings growth over the past year (47.5%) exceeds its 5-year average (20.6% per year).

Earnings vs Industry: BSIG earnings growth over the past year (47.5%) underperformed the Capital Markets industry 52.2%.


Return on Equity

High ROE: Whilst BSIG's Return on Equity (76.91%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is BrightSphere Investment Group's financial position?


Financial Position Analysis

Short Term Liabilities: BSIG's short term assets ($946.2M) exceed its short term liabilities ($296.5M).

Long Term Liabilities: BSIG's short term assets ($946.2M) exceed its long term liabilities ($710.4M).


Debt to Equity History and Analysis

Debt Level: BSIG's debt to equity ratio (111%) is considered high.

Reducing Debt: BSIG's debt to equity ratio has increased from 48% to 111% over the past 5 years.

Debt Coverage: BSIG's debt is well covered by operating cash flow (21.7%).

Interest Coverage: BSIG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is BrightSphere Investment Group current dividend yield, its reliability and sustainability?

0.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BSIG's dividend (0.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: BSIG's dividend (0.16%) is low compared to the top 25% of dividend payers in the US market (3.52%).


Stability and Growth of Payments

Stable Dividend: BSIG is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: BSIG is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BSIG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BSIG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Suren Rana (41 yo)

1.25yrs

Tenure

US$1,395,830

Compensation

Mr. Suren S. Rana serves as Chief Executive Officer, President and Director at BrightSphere Investment Group Inc. since April 15, 2020. Mr. Rana served as Chief Financial Officer of BrightSphere Investment...


CEO Compensation Analysis

Compensation vs Market: Suren's total compensation ($USD1.40M) is below average for companies of similar size in the US market ($USD3.69M).

Compensation vs Earnings: Suren's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BSIG's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: BSIG's board of directors are not considered experienced ( 2 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

BrightSphere Investment Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BrightSphere Investment Group Inc.
  • Ticker: BSIG
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$1.962b
  • Shares outstanding: 79.35m
  • Website: https://www.bsig.com

Number of Employees


Location

  • BrightSphere Investment Group Inc.
  • 200 Clarendon Street
  • 53rd Floor
  • Boston
  • Massachusetts
  • 2116
  • United States

Listings


Biography

BrightSphere Investment Group Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios thro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 00:49
End of Day Share Price2021/07/29 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.