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Brilliant Earth Group (BRLT)
NASDAQ:BRLT
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Brilliant Earth Group
(NASDAQ:BRLT)
55Neutral
Positive Factors
Financial Performance
Positive stock reaction as 3Q EPS of 2c beat Street's 0c on better margins with adj. EBITDA of $3.6m vs. Street's $1.8m.
Sales Growth
Repeat orders increased by 11% as lower priced fine jewelry continues to gain mix share.
Negative Factors
Consumer Behavior
Management reported 2Q bridal down and that 3Q engagement trends have remained soft as consumers have elongated their purchase decisions.
Guidance
Stock reacted down as BRLT guided FY24 top-line down (10%) at the midpoint vs. prior and adj. EBITDA down (22%) vs. prior due to softer bridal and eComm trends.
Market Trends
Bridal industry trends remain pressured on a multi-year normalization path.
Brilliant Earth Group (BRLT) vs. S&P 500 (SPY)
Market Cap
$130.08M
Dividend YieldN/A
Average Volume (3M)75.56K
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth-3.32%
EPS Growth-62.83%
CountryUS
Employees679
SectorConsumer Cyclical
Sector Strength49
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)-0.05
Shares Outstanding13,624,810
10 Day Avg. Volume55,100
30 Day Avg. Volume75,557
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.30
Price to Cash Flow (P/CF)16.00
P/FCF Ratio47.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.80Price Target Upside39.53% Upside
Rating ConsensusHold
Number of Analyst Covering2
Brilliant Earth Group Business Overview & Revenue Model
Company DescriptionBrilliant Earth Group (BRLT) is a leading retailer specializing in ethically-sourced fine jewelry, particularly known for its focus on conflict-free diamonds and sustainability. The company offers a wide range of jewelry products including engagement rings, wedding bands, and other fine jewelry pieces. Brilliant Earth operates both online and through showrooms in various locations, providing customers with a personalized shopping experience and an extensive selection of custom and ready-made jewelry options.
How the Company Makes MoneyBrilliant Earth Group generates revenue primarily through the sale of fine jewelry, which includes engagement rings, wedding bands, and other jewelry pieces. The company's revenue model is based on direct sales to consumers through both their e-commerce platform and physical showrooms. Key revenue streams include the sale of responsibly sourced diamonds, gemstones, and precious metals. The company also benefits from its brand reputation for ethical sourcing and sustainability, which attracts a customer base that values social responsibility in their purchasing decisions. Additionally, strategic partnerships with suppliers who adhere to ethical sourcing standards contribute to maintaining product quality and brand integrity, further supporting their sales and revenue growth.
Brilliant Earth Group Financial Statement Overview
Summary
Brilliant Earth Group demonstrates a remarkable net income gain in TTM, boosting overall financial performance. However, underlying operational metrics reveal areas of concern, such as declining revenues and negative EBITDA margins. While the balance sheet shows some signs of improvement, sustainability and operational efficiency are key areas to address moving forward.Income Statement
Brilliant Earth Group shows a mixed income statement profile. The company has achieved significant net income growth in TTM, mainly due to a one-time large gain, but revenue has declined compared to the previous year. Gross profit margin remains strong. However, the negative EBITDA margin in TTM indicates operational challenges.65
Positive
Balance Sheet
The balance sheet of Brilliant Earth Group reflects moderate financial stability. The company has a low equity base, impacting its debt-to-equity ratio unfavorably. Despite this, the equity ratio has improved, indicating better asset management. The return on equity has significantly increased due to the one-time gain in net income.70
Positive
Cash Flow
Cash flow analysis reveals fluctuating free cash flow, with a decrease in operating cash flow in TTM. The operating cash flow to net income ratio is healthy, but primarily due to the extraordinary net income. The company must focus on consistent cash flow generation to support operations.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 426.94M | 446.38M | 439.88M | 380.19M | 251.82M | 201.34M | Gross Profit |
| 253.65M | 257.00M | 234.29M | 187.42M | 112.30M | 84.92M | EBIT |
| 73.94M | 4.48M | 23.33M | 40.13M | 26.59M | -5.39M | EBITDA |
| 11.43M | 13.63M | 28.67M | 40.99M | 27.16M | -4.90M | Net Income Common Stockholders |
| 1.37B | 584.00K | 19.02M | 1.53M | 21.58M | -7.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 40.39M | 155.81M | 154.65M | 172.87M | 66.27M | 40.39M | Total Assets |
| 0.00 | 273.58M | 262.57M | 217.73M | 85.22M | 55.92M | Total Debt |
| 0.00 | 100.20M | 95.12M | 63.58M | 62.21M | 32.65M | Net Debt |
| 40.39M | -55.61M | -59.53M | -109.29M | -4.06M | -7.74M | Total Liabilities |
| 0.00 | 176.13M | 169.43M | 134.89M | 170.61M | 147.44M | Stockholders Equity |
| -10.69M | 12.53M | 10.93M | 8.40M | -85.39M | -91.52M |
| Cash Flow | Free Cash Flow | ||||
| 10.16M | 14.27M | 5.38M | 40.47M | 26.14M | -111.00K | Operating Cash Flow |
| 14.10M | 26.21M | 14.51M | 46.08M | 26.72M | 567.00K | Investing Cash Flow |
| -3.94M | -11.94M | -9.12M | -5.61M | -584.00K | -678.00K | Financing Cash Flow |
| -4.63M | -13.10M | -23.60M | 66.12M | -263.00K | 22.60M |
Brilliant Earth Group Technical Analysis
Negative
1.29
Price Trends
1.70
Negative
1.75
Negative
1.97
Negative
Market Momentum
-0.11
Negative
36.38
Neutral
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRLT, the sentiment is Negative. The current price of 1.29 is below the 20-day moving average (MA) of 1.43, below the 50-day MA of 1.70, and below the 200-day MA of 1.97, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRLT.
Brilliant Earth Group Risk Analysis
Brilliant Earth Group disclosed 65 risk factors in its most recent earnings report. Brilliant Earth 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
Brilliant Earth Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $282.48M | 17.07 | 4.74% | 7.81% | -4.18% | -58.51% | |
64 Neutral | $2.09B | 5.79 | 29.15% | 2.41% | -6.69% | 15.42% | |
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
55 Neutral | $130.08M | ― | 3.24% | ― | -3.32% | -62.83% | |
49 Neutral | $68.09M | ― | -55.36% | ― | -17.87% | 11.81% |
* Consumer Cyclical Sector Average
Performance Comparison
BRLT
Brilliant Earth Group
1.32
-1.39
-51.29%
FOSL
Fossil Group
1.28
0.42
48.84%
MOV
Movado Group
18.01
-7.82
-30.27%
SIG
Signet Jewelers
47.26
-48.36
-50.58%
Brilliant Earth Group Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: -23.67% | Next Earnings Date: Mar 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong profitability and strategic expansions highlighting the company's resilience. However, there were significant challenges in sales metrics like a decline in net sales and average order value. Despite these challenges, the company's focus on brand strength, showroom expansion, and financial health contributes positively to the overall outlook.Highlights
Consistent Profitability
Achieved 13 consecutive quarters of profitability with Q3 delivering $3.6 million in adjusted EBITDA.
Gross Margin Expansion
Expanded gross margin by 230 basis points year-over-year to 60.8%.
Successful New Product Launch
Launched a fine jewelry collection with Dr. Jane Goodall, marking the most successful launch ever for their fine jewelry collection.
Showroom Expansion
Expanded retail footprint with new locations, aiming for 40 showrooms by year-end.
Cash and Financial Strength
Ended Q3 with approximately $153 million in cash, reflecting a year-over-year increase of $5.5 million.
Lowlights
Decline in Net Sales
Net sales for Q3 were $99.9 million, a decline of 13% year-over-year.
Average Order Value Decline
Average order value declined 12% year-over-year.
Increased SG&A Expenses
SG&A as a percentage of net sales increased to 61.9% compared to 56.8% in Q3 2023.
Company Guidance
During the call, Brilliant Earth provided guidance reflecting a dynamic strategy amidst industry headwinds. The company reported Q3 net sales of $99.9 million, a 13% year-over-year decline, within their guidance range. They achieved a gross margin expansion of 230 basis points to 60.8% and delivered $3.6 million in adjusted EBITDA, surpassing profitability expectations. Despite a challenging engagement market, they observed strong growth in non-engagement categories, such as wedding and anniversary bands and fine jewelry, highlighted by the successful launch of the Jane Goodall collection. The company raised its adjusted EBITDA guidance for the year to $14 million to $16 million, expecting sequential improvement in sales growth in Q4. Their asset-light, data-driven model, coupled with strategic investments in brand-building, showroom expansion, and marketing efficiency, positions them well to seize emerging demand in a competitive and promotional environment.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.