NYSE:CLNC

Stock Analysis Report

Executive Summary

Colony Credit Real Estate, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States.


Snowflake Analysis

Mediocre balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has Colony Credit Real Estate's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CLNC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.1%

CLNC

26.8%

US Mortgage REITs

9.4%

US Market


1 Year Return

-75.4%

CLNC

-54.2%

US Mortgage REITs

-6.8%

US Market

Return vs Industry: CLNC underperformed the US Mortgage REITs industry which returned -64.6% over the past year.

Return vs Market: CLNC underperformed the US Market which returned -10% over the past year.


Shareholder returns

CLNCIndustryMarket
7 Day8.1%26.8%9.4%
30 Day-61.8%-47.6%-3.9%
90 Day-71.5%-54.4%-16.5%
1 Year-72.2%-75.4%-48.7%-54.2%-4.8%-6.8%
3 Yearn/a-39.1%-56.3%23.4%15.2%
5 Yearn/a-24.7%-57.1%41.3%25.7%

Price Volatility Vs. Market

How volatile is Colony Credit Real Estate's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Colony Credit Real Estate undervalued compared to its fair value and its price relative to the market?

0.23x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CLNC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CLNC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CLNC is unprofitable, so we can't compare its PE Ratio to the Mortgage REITs industry average.

PE vs Market: CLNC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CLNC is good value based on its PB Ratio (0.2x) compared to the US Mortgage REITs industry average (0.3x).


Next Steps

Future Growth

How is Colony Credit Real Estate forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

36.4%

Forecasted Diversified Financials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CLNC's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if CLNC'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: Insufficient data to determine if CLNC's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if CLNC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Colony Credit Real Estate performed over the past 5 years?

-88.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLNC is currently unprofitable.

Growing Profit Margin: CLNC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CLNC is unprofitable, and losses have increased over the past 5 years at a rate of -88.8% per year.

Accelerating Growth: Unable to compare CLNC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CLNC is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (18.1%).


Return on Equity

High ROE: CLNC has a negative Return on Equity (-21.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Colony Credit Real Estate's financial position?


Financial Position Analysis

Short Term Liabilities: CLNC's short term assets ($2.9B) exceed its short term liabilities ($314.8M).

Long Term Liabilities: CLNC's short term assets ($2.9B) do not cover its long term liabilities ($4.9B).


Debt to Equity History and Analysis

Debt Level: CLNC's debt to equity ratio (225.7%) is considered high.

Reducing Debt: Insufficient data to determine if CLNC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CLNC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CLNC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 17.1% per year.


Next Steps

Dividend

What is Colony Credit Real Estate's current dividend yield, its reliability and sustainability?

31.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLNC's dividend (37.85%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: CLNC's dividend (37.85%) is in the top 25% of dividend payers in the US market (5.46%)


Stability and Growth of Payments

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

Growing Dividend: CLNC has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (158.7%), CLNC's dividend payments are not well 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?

1.4yrs

Average management tenure


CEO

Mike Mazzei (58yo)

no data

Tenure

Mr. Michael Joseph Mazzei, also known as Mike, has been the Chief Executive Officer and President of Colony Credit Real Estate, Inc. since April 1, 2020. He served as the President of Ladder Capital Financ ...


Leadership Team

NamePositionTenureCompensationOwnership
Neale Redington
CFO & Treasurer1.42yrsUS$1.04m0.038% $195.5k
David Palamé
General Counsel & Secretary2.25yrsUS$360.10k0.050% $255.2k
Michael Mazzei
President & CEOno datano data0.11% $566.7k
Andrew Witt
Chief Operating Officer0.083yrno data0.015% $74.1k
Frank Saracino
Chief Accounting Officer1.42yrsno data0.021% $104.5k
Daniel Katz
Managing Directorno datano datano data
Kevin Swartz
Managing Director1.5yrsno datano data

1.4yrs

Average Tenure

52yo

Average Age

Experienced Management: CLNC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Catherine Rice
Lead Independent Directorno dataUS$310.01k0.0098% $50.0k
Richard Saltzman
Non-Executive Chairman2.25yrsUS$180.01k0.034% $172.4k
Kevin Traenkle
Director2.25yrsUS$1.60m0.16% $830.2k
Vernon Schwartz
Independent Director2.25yrsUS$295.01k0.015% $74.6k
Darren Tangen
Director2.25yrsno data0.12% $617.2k
Winston Wilson
Independent Director2.25yrsUS$300.01k0.015% $77.5k
John Westerfield
Independent Director2.25yrsUS$295.01k0.0098% $50.0k

2.3yrs

Average Tenure

59yo

Average Age

Experienced Board: CLNC's board of directors are not considered experienced ( 2.3 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 been diluted in the past year, with total shares outstanding growing by 6.4%.


Top Shareholders

Company Information

Colony Credit Real Estate, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Colony Credit Real Estate, Inc.
  • Ticker: CLNC
  • Exchange: NYSE
  • Founded: 2017
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$508.681m
  • Market Cap: US$496.778m
  • Shares outstanding: 131.44m
  • Website: https://www.clncredit.com

Location

  • Colony Credit Real Estate, Inc.
  • 515 South Flower Street
  • 44th Floor
  • Los Angeles
  • California
  • 90071
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLNCNYSE (New York Stock Exchange)YesClass A Common StockUSUSDFeb 2018

Biography

Colony Credit Real Estate, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States. It focuses on originating, acquiring, financing, and managing a portfolio of CRE senior mortgage loans, mezzanine loans, preferred equity, debt securities, and net leased properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Colony NorthStar Credit Real Estate, Inc. and changed its name to Colony Credit Real Estate, Inc. in June 2018. Colony Credit Real Estate, Inc. was founded in 2017 and is headquartered in Los Angeles, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 04:18
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
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.