NYSE:CLNY

Stock Analysis Report

Executive Summary

Colony Capital, Inc. (NYSE: CLNY) is a leading global investment management firm with assets under management of $53 billion, which includes approximately $14 billion of assets under management from Digital Bridge, a leading global investment manager of digital infrastructure assets including cell towers, small cells, fiber and data centers.

Rewards

Trading at 19.5% below its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Dividend of 8.96% is not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.6%

CLNY

-0.08%

US REITs

-2.7%

US Market


1 Year Return

-20.5%

CLNY

15.7%

US REITs

21.2%

US Market

Return vs Industry: CLNY underperformed the US REITs industry which returned 17.9% over the past year.

Return vs Market: CLNY underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CLNYIndustryMarket
7 Day-6.6%-0.08%-2.7%
30 Day-5.2%3.0%0.09%
90 Day-20.2%0.6%6.9%
1 Year-13.4%-20.5%20.5%15.7%23.8%21.2%
3 Year-58.2%-67.3%37.4%20.0%48.1%38.6%
5 Yearn/a48.3%17.7%72.5%53.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Colony Capital undervalued compared to its fair value and its price relative to the market?

23.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLNY ($4.91) is trading below our estimate of fair value ($6.1)

Significantly Below Fair Value: CLNY is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: CLNY 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 CLNY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CLNY is good value based on its PB Ratio (0.6x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Colony Capital forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

61.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLNY is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CLNY is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CLNY is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CLNY's revenue is expected to decline over the next 3 years (-7.1% per year).

High Growth Revenue: CLNY's revenue is forecast to decline over the next 3 years (-7.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Colony Capital performed over the past 5 years?

-78.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLNY is currently unprofitable.

Growing Profit Margin: CLNY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CLNY is unprofitable, and losses have increased over the past 5 years at a rate of -78.4% per year.

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

Earnings vs Industry: CLNY is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (8.1%).


Return on Equity

High ROE: CLNY has a negative Return on Equity (-15.49%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Colony Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CLNY has a high level of physical assets or inventory.

Debt Coverage by Assets: CLNY's debt is not covered by short term assets (assets are 0.8x debt).


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 CLNY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CLNY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 5% per year.


Financial Institutions Analysis

Asset Level: CLNY's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CLNY has a sufficient allowance for bad loans.

Low Risk Liabilities: CLNY reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CLNY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CLNY has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CLNY has an appropriate level of bad loans.


Next Steps

Dividend

What is Colony Capital's current dividend yield, its reliability and sustainability?

9.67%

Current Dividend Yield


Dividend Yield vs Market

company9.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years8.1%

Current dividend yield vs market & industry

Notable Dividend: CLNY's dividend (8.96%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CLNY's dividend (8.96%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

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

Growing Dividend: CLNY has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: CLNY is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CLNY's dividends in 3 years are forecast to be thoroughly covered by earnings (0.1% payout ratio).


Next Steps

Management

What is the CEO of Colony Capital's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Tom Barrack (71yo)

1.2yrs

Tenure

US$8,525,666

Compensation

Mr. Thomas Joseph Barrack Jr., also known as Tom, has been the Chief Executive Officer at Colony Capital, LLC. He has been the Chief Executive Officer and President of Harveys Casino Resorts, Inc. since Ja ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD8.53M) is above average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Tom's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: CLNY's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

70yo

Average Age

Experienced Board: CLNY's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$101,59330 Aug 19
Craig Hatkoff
EntityIndividual
Shares23,000
Max PriceUS$4.42
BuyUS$91,10016 Aug 19
Raymond Mikulich
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$4.61

Ownership Breakdown

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


Management Team

  • Tom Barrack (71yo)

    Founder

    • Tenure: 1.2yrs
    • Compensation: US$8.53m
  • Mark Hedstrom (60yo)

    Executive VP

    • Tenure: 1yrs
    • Compensation: US$3.09m
  • Kevin Traenkle (49yo)

    Executive VP & Chief Investment Officer

    • Tenure: 10.6yrs
    • Compensation: US$3.34m
  • Jonathan Lang (51yo)

    MD & Chief Information Officer

    • Tenure: 1.8yrs
  • Ron Sanders (55yo)

    Executive VP

    • Tenure: 10.3yrs
    • Compensation: US$2.68m
  • Darren Tangen (48yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$8.64m
  • Neale Redington (52yo)

    MD & Chief Accounting Officer

    • Brian Lee

      MD & Head of Corporate Finance

      • Donna Hansen

        MD, Chief Administrative Officer & Global Head of Tax

        • Karren Fink

          MD & Global Head of Human Resources

          • Tenure: 1.8yrs

        Board Members

        • Nancy Curtin (61yo)

          Lead Director

          • Tenure: 3yrs
          • Compensation: US$276.94k
        • Doug Crocker (79yo)

          Independent Non-Executive Director

          • Tenure: 3yrs
          • Compensation: US$251.94k
        • Tom Barrack (71yo)

          Founder

          • Tenure: 1.2yrs
          • Compensation: US$8.53m
        • George Parker (80yo)

          Independent Director

          • Tenure: 10.3yrs
          • Compensation: US$271.94k
        • Launny Steffens (78yo)

          Independent Non-Executive Director

          • Tenure: 3yrs
          • Compensation: US$266.94k
        • Ray Mikulich (66yo)

          Independent Director

          • Tenure: 0.9yrs
        • Jon Fosheim (69yo)

          Independent Non-Executive Director

          • Tenure: 3yrs
          • Compensation: US$266.94k
        • John Somers (75yo)

          Independent Non-Executive Director

          • Compensation: US$266.94k
        • Charles Schoenherr (59yo)

          Independent Non-Executive Director

          • Tenure: 3yrs
          • Compensation: US$251.94k
        • Justin Metz (45yo)

          Independent Non-Executive Director

          • Tenure: 3yrs
          • Compensation: US$251.94k

        Company Information

        Colony Capital, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Colony Capital, Inc.
        • Ticker: CLNY
        • Exchange: NYSE
        • Founded: 2009
        • Industry: Diversified REITs
        • Sector: Real Estate
        • Implied Market Cap: US$2.507b
        • Market Cap: US$2.219b
        • Shares outstanding: 540.35m
        • Website: https://www.clny.com

        Number of Employees


        Location

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

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        CLNY.PRHNYSE (New York Stock Exchange)7.125% PFD SER HUSUSDJan 2017
        CLNYNYSE (New York Stock Exchange)YesNew Class A Common StockUSUSDJan 2017
        6CLDB (Deutsche Boerse AG)YesNew Class A Common StockDEEURJan 2017
        0YY7LSE (London Stock Exchange)YesNew Class A Common StockGBUSDJan 2017
        CLNY.PRGNYSE (New York Stock Exchange)7.5% CUM PFD GUSUSDJan 2017
        CLNY.PRINYSE (New York Stock Exchange)7.15% CUM PFD IUSUSDMay 2017
        CLNY.PRJNYSE (New York Stock Exchange)7.125% CUM PFD JUSUSDSep 2017

        Biography

        Colony Capital, Inc. (NYSE: CLNY) is a leading global investment management firm with assets under management of $53 billion, which includes approximately $14 billion of assets under management from Digital Bridge, a leading global investment manager of digital infrastructure assets including cell towers, small cells, fiber and data centers. The Company manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, and traded and non-traded real estate investment trusts. The Company has significant holdings in: (a) the healthcare, industrial and hospitality property sectors; (b) Colony Credit Real Estate, Inc. (NYSE: CLNC), which is externally managed by a subsidiary of the Company; and (c) various other equity and debt investments. The Company is headquartered in Los Angeles with key offices in Boca Raton, New York, Paris and London, and has over 450 employees across 21 locations in 13 countries including employees assumed in the July 2019 business combination with Digital Bridge. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/28 00:45
        End of Day Share Price2020/01/27 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.