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DigitalBridge Group (DBRG)
NYSE:DBRG
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DigitalBridge Group
(NYSE:DBRG)
73Outperform
Positive Factors
Asset Monetization
Asset monetization is anticipated to unlock significant upside, boosting investor confidence and driving new capital formation.
Business Strategy
The company is on track to successfully execute its plan to become a preeminent global digital infrastructure investment vehicle, providing confidence in its ability to raise significant fee-generating capital annually.
Fundraising
Strong 4Q24 fundraising is seen as encouraging and sets an appropriate bar for 2025.
Negative Factors
Fee Revenue
The outsized contribution from lower fee-rate Co-Invest has negatively impacted Fee Revenue and FRE growth.
FRE Conversion
FRE conversion continues to be challenged, with a big guidance cut in Q3.
Guidance
Excluding quarterly guidance for incremental FEEUM might be viewed negatively, as estimating capital raised in a short period is difficult to predict.
DigitalBridge Group (DBRG) vs. S&P 500 (SPY)
Market Cap
$1.76B
Dividend Yield0.43%
Average Volume (3M)2.85M
Price to Earnings (P/E)133.6
Beta (1Y)1.36
Revenue Growth-59.60%
EPS Growth-93.25%
CountryUS
Employees324
SectorReal Estate
Sector Strength71
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.04
Shares Outstanding174,312,320
10 Day Avg. Volume2,761,003
30 Day Avg. Volume2,849,959
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.65
Price to Cash Flow (P/CF)14.00
P/FCF Ratio16.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.56Price Target Upside75.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
DigitalBridge Group Business Overview & Revenue Model
Company DescriptionDigitalBridge (NYSE: DBRG) is an infrastructure investment firm. It specializes in investing and operating businesses across the digital ecosystem including cell towers, data centers, fiber, small cells, edge infrastructure, digital infrastructure and real estate. DigitalBridge Group, Inc. was founded in 2009 and is headquartered in Boca Raton, Florida with additional offices in Los Angeles, California; New York, New York; Boston, Massachusetts; Denver, Colorado; London, United Kingdom; Senningerberg, Luxembourg and Singapore.
How the Company Makes MoneyDigitalBridge Group makes money primarily through its investments in digital infrastructure assets and the management of these assets. The company generates revenue from leasing space and capacity in data centers, charging fees for the use of cell towers and fiber networks, and providing managed services to its clients. Additionally, as an investment management firm, DigitalBridge earns management and performance fees from institutional investors who commit capital to its funds. The firm's strategic partnerships with telecommunications companies, technology firms, and other stakeholders in the digital landscape also play a crucial role in enhancing its earnings potential and expanding its market presence.
DigitalBridge Group Financial Statement Overview
Summary
DigitalBridge Group has shown improvement with a return to profitability and debt reduction. However, declining revenue and cash flow instability remain challenges.Income Statement
The company has shown a declining trend in total revenue over recent years, with a significant drop in gross profit margin from previous highs. Despite a net loss in earlier years, the company managed to achieve a positive net income in 2024. While the EBIT and EBITDA margins have improved from negative values, they remain moderate compared to industry expectations.65
Positive
Balance Sheet
DigitalBridge Group has significantly reduced its debt levels, eliminating external debt by 2024, which improves its financial stability. The equity ratio is strong, suggesting prudent management of assets relative to equity. However, the return on equity remains moderate, indicating room for improvement in profitability relative to shareholder equity.70
Positive
Cash Flow
The company's operating cash flow has decreased significantly from previous highs, impacting the free cash flow generation. Although the company has achieved positive free cash flow in 2024, the growth rate is not robust, and prior volatility in free cash flow may pose risks. The ratio of operating cash flow to net income is reasonable, indicating a transition to more sustainable cash generation.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 607.03M | 821.38M | 1.14B | 965.80M | 1.24B | Gross Profit |
| 462.38M | 784.73M | 721.24M | 621.36M | 750.35M | EBIT |
| 165.87M | 304.87M | -199.20M | -124.63M | -704.75M | EBITDA |
| 218.96M | 426.82M | 220.39M | 415.06M | 54.51M | Net Income Common Stockholders |
| 70.52M | 185.28M | -421.29M | -216.82M | -2.46B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 302.15M | 345.33M | 918.25M | 1.60B | 703.54M | Total Assets |
| 3.51B | 3.56B | 11.03B | 14.20B | 20.20B | Total Debt |
| 339.71M | 420.82M | 5.45B | 4.86B | 7.79B | Net Debt |
| 37.56M | 75.48M | 4.53B | 3.26B | 7.09B | Total Liabilities |
| 1.02B | 1.05B | 6.46B | 8.93B | 12.91B | Stockholders Equity |
| 1.96B | 1.81B | 1.66B | 2.15B | 2.50B |
| Cash Flow | Free Cash Flow | |||
| 56.53M | 233.64M | -1.88B | -121.69M | -2.04B | Operating Cash Flow |
| 60.12M | 233.64M | 262.58M | 248.24M | 89.89M | Investing Cash Flow |
| -11.22M | -979.04M | -1.91B | 146.56M | -1.93B | Financing Cash Flow |
| -90.84M | 58.15M | 923.78M | 411.26M | 1.37B |
DigitalBridge Group Technical Analysis
Negative
9.45
Price Trends
10.59
Negative
11.52
Negative
12.56
Negative
Market Momentum
-0.41
Positive
39.75
Neutral
42.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBRG, the sentiment is Negative. The current price of 9.45 is below the 20-day moving average (MA) of 10.06, below the 50-day MA of 10.59, and below the 200-day MA of 12.56, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 39.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DBRG.
DigitalBridge Group Risk Analysis
DigitalBridge Group disclosed 48 risk factors in its most recent earnings report. DigitalBridge 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
DigitalBridge Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $50.62B | 93.24 | 2.98% | 3.25% | 1.42% | -42.07% | |
73 Outperform | $1.76B | 133.57 | 6.48% | 0.43% | -59.60% | -93.25% | |
73 Outperform | $101.08B | 44.89 | 91.38% | 3.00% | -3.05% | 51.74% | |
73 Outperform | $23.85B | 31.96 | -14.67% | 1.77% | -1.18% | 50.21% | |
71 Outperform | $81.23B | 98.13 | 6.27% | 2.09% | 6.84% | -17.14% | |
61 Neutral | $4.75B | 18.23 | -3.59% | 10.86% | 6.00% | -21.50% | |
55 Neutral | $46.33B | 33.81 | -124.94% | 5.88% | -5.92% | -359.56% |
* Real Estate Sector Average
Performance Comparison
DBRG
DigitalBridge Group
9.45
-9.10
-49.06%
AMT
American Tower
212.80
23.65
12.50%
CCI
Crown Castle
104.31
6.97
7.16%
DLR
Digital Realty
155.49
21.83
16.33%
EQIX
Equinix
852.44
75.95
9.78%
SBAC
SBA Communications
218.69
4.43
2.07%
DigitalBridge Group Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -12.09% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
DigitalBridge Group had a strong finish to 2024 with record fundraising and significant growth in assets under management. Despite some challenges in meeting financial projections earlier in the year and a lower blended fee rate, the company's strong performance in the fourth quarter and robust growth across data center platforms contribute to a positive outlook.Highlights
Record Fundraising Achievement
DigitalBridge Group achieved record fundraising of $9 billion in 2024, which includes $4.8 billion in the fourth quarter, exceeding the annual target by 28%.
Significant Growth in Assets Under Management
The company's assets under management grew from $80 billion to $96 billion in one year, showcasing a growth rate of over 20%.
Management Fees and Earnings Growth
Management fees grew over 20% in 2024, with a 35% increase in the fourth quarter. Fee-related earnings grew over 30% both in the fourth quarter and over the year.
Strong Performance Across Data Center Platforms
DigitalBridge's data center platforms expanded significantly, with capacity growing at a 68% compound annual growth rate over the past five years.
Successful Securitization in Debt Markets
DigitalBridge successfully tapped into the debt capital markets, particularly through the securitization market, to lower portfolio companies' cost of capital.
Significant Capital Raised for New Investments
Over $24 billion was raised in 2024 through primary equity for new investments and secondary equity to generate DPI.
Lowlights
Lower Blended Fee Rate on Fundraising
Despite achieving $9 billion in fundraising, it was at a lower blended rate of 70 basis points instead of the typical 90 basis points.
Challenges in Meeting Financial Projections
DigitalBridge faced difficulties delivering on financial projections in the second and third quarters of 2024.
Net Carried Interest Reversal
There was an $18 million net carried interest reversal in the fourth quarter, affecting overall financial results.
Company Guidance
In the fourth quarter of 2024, DigitalBridge Group exceeded its fundraising target by securing $9 billion, with $4.8 billion raised in the last quarter alone, which was 28% above the initial $7 billion goal. The company successfully deployed $16 billion in capital, surpassing the $15 billion they planned, primarily focusing on the data center sector. Assets under management grew by 20%, from $80 billion to $96 billion, showcasing the company's scalability. Management fees rose over 20% annually and over 35% in the fourth quarter, while fee-related earnings increased by more than 30% for the year, with expanding margins expected to continue. The company also noted a strategic increase in co-investment, which, despite being at a lower blended fee rate, matched the financial impact of their initial fundraising target.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.