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B. Riley Financial (RILY)
:RILY
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B Riley Financial
(NASDAQ:RILY)
48Neutral
B Riley Financial (RILY) vs. S&P 500 (SPY)
Market Cap
$125.34M
Dividend Yield72.99%
Average Volume (3M)3.25M
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth-17.51%
EPS Growth-1376.05%
CountryUS
Employees2,383
SectorFinancial
Sector Strength85
IndustryDiversified Financial Services
Share Statistics
EPS (TTM)-27.76
Shares Outstanding30,497,066
10 Day Avg. Volume758,158
30 Day Avg. Volume3,247,512
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.12
Price to Cash Flow (P/CF)1.60
P/FCF Ratio0.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
B Riley Financial Business Overview & Revenue Model
Company DescriptionB. Riley Financial, Inc. engages in the provision of financial services and solutions to the capital raising and financial advisory needs of public and private firms. It operates through the following segments: Capital Markets; Auction and Liquidation; Valuation and Appraisal; and Principal Investments-United Online. The Capital Markets segment provides investment banking, corporate finance, research, wealth management, and sales and trading services to corporate, institutional, and high net worth clients. The Auction and Liquidation segment operates through the retail store liquidations and wholesale and industrial assets dispositions. The Valuation and Appraisal segment includes valuation of assets and appraisal services to financial institutions, lenders, private equity firms, and other providers of capital. The Principal Investments-United Online segment offers consumer subscription services through its subsidiary United Online, Inc. The company was founded on May 7, 2009 and is headquartered in Woodland Hills, CA.
How the Company Makes MoneyB. Riley Financial generates revenue through multiple streams, primarily from fees and commissions associated with its investment banking and brokerage services. The company earns underwriting fees from assisting in capital raising activities such as initial public offerings (IPOs) and secondary offerings. Additionally, B. Riley Financial gains revenue from advisory fees for merger and acquisition (M&A) guidance, restructuring, and other financial consulting services. Asset management services contribute to recurring revenue through management fees based on assets under management (AUM). The company's brokerage division earns commissions on trades executed for institutional and retail clients. Furthermore, B. Riley Financial benefits from its proprietary trading activities and investments, adding another layer to its income. Significant partnerships with other financial institutions and a strong network of corporate clients also enhance its revenue-generating capabilities.
B Riley Financial Financial Statement Overview
Summary
B Riley Financial faces significant challenges with profitability and financial stability, marked by consistent net losses and high leverage. While revenue growth has shown signs of recovery, the company's ability to maintain sustainable operations remains under pressure. Improving cash flow management is a positive sign, but returning to profitability and reducing leverage are crucial for long-term success.Income Statement
B Riley Financial has experienced fluctuating revenue growth, with a notable increase from 2022 to 2023, reversing the decline from 2021. However, profitability remains a concern with persistent negative net income, resulting in negative net profit margins. The gross profit margin remains strong, indicating efficient cost management, but EBIT and EBITDA margins have weakened from prior years.45
Neutral
Balance Sheet
The balance sheet shows high leverage with a substantial debt-to-equity ratio, increased from the previous year. The return on equity has turned negative due to net losses, while the equity ratio has further declined, reflecting increased financial risk. Continued reliance on debt financing could be risky without a clear path to profitability.40
Negative
Cash Flow
Cash flow analysis reveals improved free cash flow from 2022 to 2023, indicating better cash management. Nonetheless, operating cash flow to net income ratio suggests challenges in converting income into cash, although free cash flow has improved relative to net income. The company needs to ensure sustainable cash flow in light of its operational losses.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 995.80M | 1.64B | 1.08B | 1.74B | 902.72M | 652.11M | Gross Profit |
| 790.09M | 1.40B | 793.07M | 1.61B | 787.36M | 553.57M | EBIT |
| -350.76M | 144.65M | 44.80M | 700.39M | 344.76M | 166.65M | EBITDA |
| -496.22M | 102.22M | -74.69M | 709.07M | 378.83M | 137.43M | Net Income Common Stockholders |
| -835.19M | -99.91M | -156.59M | 445.05M | 205.15M | 81.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 179.44M | 231.96M | 268.62M | 278.93M | 103.60M | 104.27M | Total Assets |
| 1.96B | 6.07B | 6.11B | 5.85B | 2.66B | 2.32B | Total Debt |
| 540.47M | 2.45B | 2.55B | 2.10B | 1.06B | 866.93M | Net Debt |
| 361.03M | 2.22B | 2.28B | 1.82B | 957.46M | 762.67M | Total Liabilities |
| 1.70B | 5.71B | 5.43B | 4.80B | 2.12B | 1.93B | Stockholders Equity |
| 258.06M | 291.12M | 446.51M | 661.27M | 512.59M | 360.66M |
| Cash Flow | Free Cash Flow | ||||
| 329.82M | 16.79M | 2.73M | 50.22M | 55.64M | -33.85M | Operating Cash Flow |
| 331.75M | 24.50M | 6.65M | 50.89M | 57.69M | -30.39M | Investing Cash Flow |
| 627.50M | 301.17M | -32.29M | -956.53M | -128.45M | -295.40M | Financing Cash Flow |
| -435.19M | -365.92M | 17.64M | 1.08B | 69.54M | 250.18M |
B Riley Financial Technical Analysis
Negative
4.11
Price Trends
4.57
Negative
4.87
Negative
8.33
Negative
Market Momentum
-0.12
Positive
43.35
Neutral
18.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RILY, the sentiment is Negative. The current price of 4.11 is below the 20-day moving average (MA) of 4.81, below the 50-day MA of 4.57, and below the 200-day MA of 8.33, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 18.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RILY.
B Riley Financial Risk Analysis
B Riley Financial disclosed 84 risk factors in its most recent earnings report. B Riley Financial 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
B Riley Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.13B | 17.14 | 51.51% | 4.36% | 23.88% | ― | |
73 Outperform | $5.59B | 29.26 | 62.26% | 0.69% | 29.48% | 63.03% | |
73 Outperform | $8.09B | 22.77 | 23.03% | 1.55% | 22.67% | 47.20% | |
71 Outperform | $10.20B | 15.71 | 13.32% | 1.71% | 15.33% | 46.64% | |
69 Neutral | $28.90B | 13.78 | 19.07% | 1.31% | 13.79% | 28.57% | |
63 Neutral | $14.34B | 10.26 | 8.58% | 4.25% | 17.34% | -11.60% | |
48 Neutral | $125.34M | ― | -34.32% | 72.99% | -17.51% | -1376.05% |
* Financial Sector Average
Performance Comparison
RILY
B Riley Financial
4.11
-14.60
-78.03%
EVR
Evercore Partners
206.84
17.00
8.95%
LAZ
Lazard
45.91
7.18
18.54%
RJF
Raymond James Financial
141.06
16.37
13.13%
SF
Stifel Financial
98.27
23.49
31.41%
PJT
PJT Partners
144.02
51.37
55.45%
B Riley Financial Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -23.89% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant strategic partnerships and asset sales that provided financial benefits and growth opportunities. However, these positives were tempered by substantial financial losses from continuing operations, impairment charges, and ongoing debt challenges.Highlights
Strategic Partnership with Oaktree Capital
B. Riley established a joint venture with Oaktree Capital Management for Great American Group, bringing in approximately $203 million in cash and 44% ownership in the company.
Successful JOANN Liquidation Bid
The partnership with Oaktree enabled B. Riley to secure a liquidation opportunity with JOANN fabric and craft stores, representing a $2 billion retail inventory transaction.
Sale of Wealth Management Business
B. Riley announced a definitive agreement to sell a portion of its traditional W-2 Wealth Management business to Stifel Financial Corp. for approximately $26 million.
New Credit Facility with Oaktree
A new $160 million senior secured credit facility with Oaktree was established, providing greater financial and strategic flexibility.
Sale of Atlantic Coast Recycling
Atlantic Coast Recycling was sold for approximately $70 million in cash, resulting in a $30 million gain for B. Riley.
Lowlights
Net Loss from Continuing Operations
B. Riley reported an expected net loss from continuing operations of $178 million to $187 million, impacted by impairment charges and trading losses.
Impairment Charges and Investment Losses
Estimated impairment charges of $73 million to $79 million and $49 million of trading losses were reported.
Debt and Financial Uncertainty
Total debt was $1.78 billion, with a notable decline of $221 million from the third quarter, but ongoing challenges remain with outstanding debt maturities.
Company Guidance
During B. Riley Financial's preliminary fourth-quarter earnings call for the 2024 fiscal year, the company outlined several key financial metrics and strategic initiatives. The firm reported an expected net income available to common shareholders ranging from $48 million to $68 million, influenced by income from discontinued operations estimated between $236 million and $247 million. The anticipated diluted net income per share is between $1.57 and $2.22, while the net loss from continuing operations is expected to be between $178 million and $187 million. This loss is primarily due to estimated impairment charges and trading losses. The company also highlighted its operating adjusted EBITDA from continuing operations, projected at $12 million to $14 million. At the end of 2024, B. Riley had approximately $257 million in cash, cash equivalents, and restricted cash, with total debt standing at $1.78 billion. Key strategic moves included a joint venture with Oaktree Capital Management, generating approximately $203 million in cash, and the sale of Atlantic Coast recycling for about $70 million, expecting a gain of $30 million. Additionally, B. Riley announced a definitive agreement to sell a portion of its wealth management business and secured a new $160 million senior credit facility with Oaktree. The company plans to focus on its core businesses, including B. Riley Securities and Wealth Management, while addressing its debt maturities and continuing to monetize non-core assets.B Riley Financial Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
B Riley Financial Faces Nasdaq Compliance Challenges
Negative
Nov 26, 2024
B. Riley Financial has received a notification of non-compliance from Nasdaq due to delayed filings of its quarterly reports for June and September 2024. While this notice does not immediately affect its Nasdaq listing, the company must submit an updated compliance plan by December 5, 2024. Despite facing significant challenges, B. Riley is committed to resolving these delays and anticipates returning to a normal filing schedule in 2025.
Private Placements and FinancingBusiness Operations and Strategy
B Riley Financial Partners with Oaktree for Strategic Growth
Positive
Nov 21, 2024
B. Riley Financial and Oaktree Capital Management have launched a partnership in the Great American Group, a leader in valuation, appraisal, and real estate services. This new venture follows a major transaction that sees B. Riley gaining approximately $235 million and retaining significant equity in the business. The collaboration aims to leverage Oaktree’s expertise to propel the Great American Group’s growth, reducing B. Riley’s debt and offering substantial future gains.
Legal ProceedingsBusiness Operations and Strategy
B Riley Financial Faces Challenges Amid Franchise Group Bankruptcy
Neutral
Nov 4, 2024
B. Riley Financial faces significant challenges as Franchise Group enters bankruptcy, impacting investments worth millions. Despite setbacks, CEO affirms the company’s resilience, highlighting strategic asset sales and strong capital reserves. B. Riley is positioning itself for growth with a robust talent pool and sound financial strategies, aiming to thrive amidst adversity and restore confidence among stakeholders.
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.