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Bridge Investment Group (BRDG)
NYSE:BRDG
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Bridge Investment Group
(NYSE:BRDG)
70Outperform
Positive Factors
Valuation
Shares still trade at a meaningful -35% discount to alternative managers peers, presenting a wide risk/reward skew.
Negative Factors
Fundraising Performance
Fundraising of $289m in 3Q was 64% below expectations and unchanged from a year ago, impacting revenue recovery.
Real Estate Market
The cyclical recovery in real estate is taking longer than expected to materialize, which pressures BRDG’s fundraising and earnings.
Bridge Investment Group (BRDG) vs. S&P 500 (SPY)
Market Cap
$3.56B
Dividend Yield4.06%
Average Volume (3M)546.17K
Price to Earnings (P/E)79.4
Beta (1Y)1.45
Revenue Growth7.17%
EPS GrowthN/A
CountryUS
Employees2,300
SectorFinancial
Sector Strength81
IndustryAsset Management Services
Share Statistics
EPS (TTM)-0.27
Shares Outstanding44,702,522
10 Day Avg. Volume422,069
30 Day Avg. Volume546,169
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.10
Price to Cash Flow (P/CF)46.40
P/FCF Ratio31.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.90Price Target Upside7.71% Upside
Rating ConsensusHold
Number of Analyst Covering5
Bridge Investment Group Business Overview & Revenue Model
Company DescriptionBridge Investment Group (BRDG) is a real estate investment management firm that focuses on providing institutional and retail investors with investment opportunities across various real estate sectors. The company specializes in managing real estate funds and offering asset management services. Bridge Investment Group capitalizes on its extensive industry experience and network to acquire, manage, and develop properties that deliver attractive returns to its investors.
How the Company Makes MoneyBridge Investment Group makes money primarily through management fees and performance-based incentives. The company earns management fees by overseeing the assets within its investment funds, collecting a percentage of the assets under management as compensation for its services. Additionally, Bridge Investment Group may gain performance-based fees, also known as carried interest, which are a share of the profits generated by the investment funds that exceed a predefined benchmark. These revenue streams are supported by the company's strategic acquisitions, property development, and asset management expertise, enabling them to maximize value and returns for their investors. Partnerships with institutional investors and capital providers play a critical role in sourcing investment opportunities and scaling the company's operations.
Bridge Investment Group Financial Statement Overview
Summary
Bridge Investment Group demonstrates signs of recovery and improvement, particularly in profitability and cash flow metrics, yet faces challenges in reducing leverage and achieving stronger equity returns. The company is positioned for potential growth if it can maintain positive financial momentum and manage debt levels effectively.Income Statement
Bridge Investment Group has experienced fluctuating revenue growth, with a slight increase of 5.6% last year. The gross profit margin has remained stable, yet the company saw a significant improvement in EBIT and EBITDA margins, turning positive after a loss in the previous year. The net profit margin is still relatively low but improved significantly from a negative position.65
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively high, indicating leverage risks, yet it has improved alongside an increase in stockholders' equity. Return on equity has improved from a negative position but remains low. The equity ratio shows a stable proportion of equity within total assets.55
Neutral
Cash Flow
Operating cash flow remains robust with consistent free cash flow generation, although the free cash flow growth rate has declined. The operating cash flow to net income ratio indicates strong cash generation relative to income, reflecting operational efficiency.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 412.43M | 390.65M | 409.05M | 330.01M | 231.95M | Gross Profit |
| 161.11M | 172.57M | 183.15M | 149.41M | 117.75M | EBIT |
| 99.46M | -53.91M | 116.07M | 81.81M | 67.28M | EBITDA |
| 64.84M | -37.55M | 119.00M | 84.64M | 70.50M | Net Income Common Stockholders |
| 8.01M | -11.90M | 272.37M | 408.63M | 146.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 111.72M | 77.54M | 198.19M | 86.45M | 106.88M | Total Assets |
| 1.25B | 1.29B | 1.15B | 846.29M | 426.01M | Total Debt |
| 447.32M | 483.95M | 305.93M | 160.15M | 164.17M | Net Debt |
| 356.73M | 426.25M | 122.35M | 81.73M | 62.34M | Total Liabilities |
| 741.48M | 743.47M | 508.52M | 296.56M | 224.54M | Stockholders Equity |
| 505.90M | 74.91M | 79.10M | 71.79M | 186.09M |
| Cash Flow | Free Cash Flow | |||
| 145.21M | 172.41M | 225.13M | 208.10M | 129.83M | Operating Cash Flow |
| 145.21M | 174.81M | 228.35M | 209.22M | 130.10M | Investing Cash Flow |
| 10.67M | -343.21M | -21.88M | -114.26M | -47.81M | Financing Cash Flow |
| -120.71M | 42.39M | -97.08M | -118.45M | -35.04M |
Bridge Investment Group Technical Analysis
Positive
10.12
Price Trends
8.72
Positive
8.94
Positive
8.59
Positive
Market Momentum
0.39
Negative
59.89
Neutral
82.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRDG, the sentiment is Positive. The current price of 10.12 is above the 20-day moving average (MA) of 9.74, above the 50-day MA of 8.72, and above the 200-day MA of 8.59, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 59.89 is Neutral, neither overbought nor oversold. The STOCH value of 82.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRDG.
Bridge Investment Group Risk Analysis
Bridge Investment Group disclosed 60 risk factors in its most recent earnings report. Bridge Investment Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bridge Investment Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $82.51B | 20.64 | 28.29% | 1.25% | -20.40% | -13.30% | |
70 Outperform | $3.56B | 79.37 | 3.33% | 4.06% | 7.17% | ― | |
68 Neutral | $16.66B | 16.78 | 18.90% | 3.04% | 62.87% | ― | |
65 Neutral | $184.27B | 41.99 | 36.95% | 2.61% | 21.25% | 97.42% | |
64 Neutral | $106.09B | 37.29 | 13.23% | 0.59% | 42.19% | -18.20% | |
64 Neutral | $48.35B | 75.14 | 15.93% | 2.39% | 6.12% | -15.84% | |
64 Neutral | $14.53B | 10.25 | 8.67% | 4.22% | 16.51% | -12.20% |
* Financial Sector Average
Performance Comparison
BRDG
Bridge Investment Group
9.98
3.48
53.54%
APO
Apollo Global Management
142.03
31.13
28.07%
KKR
KKR & Co
117.54
17.54
17.54%
BX
Blackstone Group
144.50
16.53
12.92%
CG
Carlyle Group
45.09
-0.42
-0.92%
ARES
Ares Management
148.40
18.86
14.56%
Bridge Investment Group Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: 29.41% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects an optimistic outlook with significant improvements and investments in key sectors such as logistics and debt strategies. Despite a decline in net income and challenges in transaction volumes, the company is well-positioned for future growth with substantial capital raised and positive market trends.Highlights
Improvement in Real Estate Market
Robert Morse indicated that the long downturn in real estate has bottomed out, with activity picking up across asset classes. The sector is beginning to reemerge with more substantive dialogue with investors and more deals to evaluate.
Strong Performance in Logistics and Debt Strategies
In Q3, $349 million was deployed in multifamily and workforce assets, $40 million in logistics, and $966 million in debt strategies. The logistics vertical is seeing opportunities to stabilize assets at a 7% yield, and debt strategies had its largest lending quarter in over two years.
Significant Capital Raised
Approximately $607 million was raised in Q3, led by $429 million in debt strategies and $115 million in workforce and affordable housing. There was also $48 million in solar infrastructure.
Investments in New Capabilities and Markets
Bridge has expanded into logistics, PE secondaries, and renewable energy, with promising developments such as a new logistics team that raised $336 million in closed-end vehicles.
Positive Real Estate Valuation Trends
Green Street's commercial property price index is up 3% in 2024, and Bridge's portfolios were also positive for the quarter. The multifamily segment saw a weighted average IRR of 23.6% on dispositions.
Lowlights
Decline in Net Income
GAAP net income was $10.6 million for Q3, with diluted net income per share of $0.04, reflecting a challenging environment.
Higher Compensation Expenses
Fee-related earnings decreased due to higher compensation-related expenses, which increased by approximately $3.1 million.
Insurance Losses
There was a net insurance loss of $1.6 million in Q3, compared to a gain of $2 million last quarter, impacting distributable earnings.
Muted Real Estate Transaction Volumes
Although there is momentum, overall real estate transaction volumes remain below normal levels, impacting revenue.
Company Guidance
During Bridge Investment Group's Q3 2024 earnings call, the leadership provided detailed guidance and discussed a variety of financial metrics. The company reported a GAAP net income of approximately $10.6 million, with net income attributable to Bridge per share of Class A common stock at $0.04. Distributable earnings of the operating company stood at $28.2 million or $0.15 per share after tax. The Board declared a dividend of $0.10 per share, payable on December 20 to shareholders of record as of December 6. In terms of capital deployment, $349 million was allocated to multifamily and workforce assets, $40 million to logistics assets, and $966 million in debt strategies. Fee-related revenue was $82.5 million, a 3% increase from the previous quarter, while fee-related earnings for the operating company were $32.4 million. The company anticipates continued growth, particularly in logistics and debt strategies, with a focus on institutional investors, which accounted for a significant portion of inflows in Q3. Looking ahead, Bridge expects robust capital deployment opportunities and a recovery in the real estate market, positioning it for further expansion in sectors with secular tailwinds.Bridge Investment Group Corporate Events
M&A Transactions
Bridge Investment Group Merges with Apollo Global Management
Positive
Feb 24, 2025
On February 23, 2025, Bridge Investment Group Holdings Inc. entered into a merger agreement with Apollo Global Management, Inc. Under the agreement, Bridge will become a wholly-owned subsidiary of Apollo, enhancing Apollo’s real estate equity platform and origination capabilities. The transaction, valued at approximately $1.5 billion, is expected to close in the third quarter of 2025, subject to customary closing conditions. The merger is anticipated to be immediately accretive to Apollo’s fee-related earnings and will allow Bridge to operate as a standalone platform within Apollo’s asset management business, retaining its existing brand and management team. The merger agreement includes various conditions and covenants, and Bridge’s stockholders will receive shares of Apollo stock as part of the transaction.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.