DigitalBridge Group, Inc. (NYSE: DBRG)

Sector: Financial Services Industry: Asset Management CIK: 0001679688
Market Cap 535.88 Mn
P/B 2.56
P/E 5.93
P/S 0.48
ROIC (Qtr) -2.13
Div Yield % 13.04
Rev 1y % (Qtr) -94.98
Total Debt (Qtr) 327.95 Mn
Debt/Equity (Qtr) 0.16
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About

DigitalBridge Group, Inc., or DBRG, is a leading global digital infrastructure investment manager, operating primarily in the United States but with a significant international presence. The company's primary business activity is managing and deploying capital across various digital infrastructure sectors, including data centers, cell towers, fiber networks, small cells, and edge infrastructure. DBRG's revenue is generated through management fees and incentive fees from its investment funds. The company's management fees are calculated at contractual...

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Investment thesis

Bull case

  • Strong operating cash flow of 212.47M provides robust 0.65x coverage of total debt 327.94M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 212.47M provides exceptional 12.37x coverage of interest expenses 17.18M, showing strong debt service capability.
  • Strong tangible asset base of 2.97B provides 9.06x coverage of total debt 327.94M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 210.90M exceeds capital expenditure of 1.57M by 133.99x, indicating strong organic growth funding capability.
  • Cash reserves of 363.95M provide ample 12131.67x coverage of acquisition spending 30000, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of 212.47M barely covers its investment activities of (101.88M), with a coverage ratio of -2.09, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 212.47M provides thin coverage of dividend payments of (7.06M) with a -30.10 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 90.60M show weak coverage of depreciation charges of 31.16M, with a 2.91 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 212.47M shows concerning coverage of minority interest expenses of (125.60M), which is -1.69x, suggesting complex corporate structure risks.
  • Retained earnings of (6.81B) provide limited buffer against comprehensive income items of 5.87M, which is -1160.54x, indicating elevated exposure to market risks.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.27 0.94
EV to Cash from Ops. EV/CFO 1.69 41.10
EV to Debt EV to Debt 2.82 15.28
EV to EBIT EV/EBIT 2.30 23.47
EV to EBITDA EV/EBITDA 1.38 47.80
EV to Free Cash Flow [EV/FCF] EV/FCF -5.66 38.62
EV to Market Cap EV to Market Cap 1.73 7.81
EV to Revenue EV/Rev 0.84 27.38
Price to Book Value [P/B] P/B 2.56 2.34
Price to Earnings [P/E] P/E 5.93 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.20 4.66
Dividend Payout Ratio % Div Payout % (Qtr) 57.10 -5.56
Dividend per Basic Share Div per Share (Qtr) 0.04 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 3.38 49.83
Interest Coverage Int. cover (Qtr) 5.27 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 96.40 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 21.94 15.43
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -57.56 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -105.08 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -56.18 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) -61.16 -163.05
EPS Growth (1y) % EPS 1y % (Qtr) -90.79 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) 619.57 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -59.20 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.22
Cash Payout Ratio Cash Payout (Qtr) 0.05 0.36
Cash Ratio Cash Ratio 0.00 0.38
Current Ratio Current Ratio 0.00 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 0.70
Interest Cover Ratio Int Coverage (Qtr) 5.27 25.16
Times Interest Earned Times Interest Earned (Qtr) 5.27 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 108.50 -114.76
EBIT Margin % EBIT Margin % (Qtr) 80.72 -127.24
EBT Margin % EBT Margin % (Qtr) 65.42 -150.97
Gross Margin % Gross Margin % (Qtr) 223.20 67.88
Net Profit Margin % Net Margin % (Qtr) 11.70 -148.68