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Bridgemarq Real Estate Services, Inc. (TSE:BRE)
TSX:BRE
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Bridgemarq Real Estate Services
(TSX:BRE)
49Neutral
Bridgemarq Real Estate Services (BRE) vs. S&P 500 (SPY)
Market Cap
$130.21M
Dividend Yield9.9%
Average Volume (3M)11.38K
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth622.68%
EPS Growth-395.54%
CountryCA
EmployeesN/A
SectorReal Estate
Sector Strength63
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-1.25
Shares Outstanding9,483,850
10 Day Avg. Volume9,702
30 Day Avg. Volume11,385
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.85
Price to Cash Flow (P/CF)20.70
P/FCF Ratio7.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.82Price Target Upside-10.05% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Bridgemarq Real Estate Services Business Overview & Revenue Model
Company DescriptionBridgemarq Real Estate Services Inc. is a Canadian company that provides real estate services through its network of real estate brokers and agents. It operates primarily under the Royal LePage, Johnston & Daniel, and Via Capitale brands. The company offers a range of services including residential real estate brokerage, relocation services, and franchise support, making it a significant player in the Canadian real estate market.
How the Company Makes MoneyBridgemarq Real Estate Services Inc. generates revenue primarily through franchise fees and real estate service fees. Franchise fees are collected from its network of real estate brokerages operating under its brand names, which include Royal LePage and Via Capitale. These fees are typically based on a percentage of the gross revenue generated by the franchised brokerages. Additionally, the company earns money through ancillary services such as relocation services and other value-added services provided to its franchisees and their clients. The company also benefits from strategic partnerships with technology and service providers that enhance the offerings available to its network of brokers and agents, thereby supporting its revenue streams.
Bridgemarq Real Estate Services Financial Statement Overview
Summary
Bridgemarq Real Estate Services faces significant financial challenges. The income statement shows a negative net income despite revenue growth, leading to a low score. The balance sheet indicates instability with a negative equity position, further lowering the score. Cash flow remains a relative strength, providing some buffer against operational losses.Income Statement
The company's income statement reveals significant challenges, as evidenced by a negative net income in 2024. The gross profit margin in 2024 was approximately 18.8%, while the EBIT and EBITDA margins were around 2.4% and 5.3%, respectively. There was a substantial revenue increase from the previous year, but the net profit margin turned negative due to rising costs. The historical revenue growth has been inconsistent, with a notable spike in 2024, yet profitability metrics are weakening.35
Negative
Balance Sheet
The balance sheet indicates financial instability, with negative stockholders' equity growing worse, reaching -$80.2 million in 2024. The debt-to-equity ratio is not meaningful due to negative equity, highlighting significant leverage issues. Total assets increased, but liabilities grew faster, exacerbating the equity deficit. This poses a risk to financial stability and long-term viability.20
Very Negative
Cash Flow
Cash flow statements show some positive aspects, such as consistent positive operating cash flow, which grew to $17.1 million in 2024. Free cash flow remained healthy at $15.6 million, indicating efficient cash management. However, the free cash flow growth rate has slowed, and reliance on cash flow to offset negative net income may not be sustainable long-term.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 350.67M | 48.45M | 49.87M | 50.20M | 40.34M | Gross Profit |
| 65.87M | 47.42M | 48.66M | 49.17M | 39.62M | EBIT |
| 8.47M | 15.32M | 17.38M | 17.72M | 14.83M | EBITDA |
| 18.52M | 23.11M | 27.67M | 28.36M | 23.33M | Net Income Common Stockholders |
| -10.32M | 4.00M | 20.97M | 4.76M | 767.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.09M | 5.74M | 6.42M | 6.22M | 9.16M | Total Assets |
| 157.44M | 64.89M | 72.63M | 78.60M | 88.96M | Total Debt |
| 87.16M | 67.02M | 66.96M | 68.42M | 73.38M | Net Debt |
| 78.07M | 61.28M | 60.54M | 62.20M | 64.22M | Total Liabilities |
| 237.69M | 122.01M | 120.94M | 135.08M | 137.40M | Stockholders Equity |
| -80.25M | -57.12M | -48.31M | -56.48M | -48.44M |
| Cash Flow | Free Cash Flow | |||
| 15.57M | 12.79M | 15.08M | 15.14M | 18.68M | Operating Cash Flow |
| 17.10M | 13.67M | 15.10M | 15.14M | 19.87M | Investing Cash Flow |
| 2.48M | -1.48M | -598.00K | -275.00K | -3.11M | Financing Cash Flow |
| -16.24M | -12.87M | -14.30M | -17.80M | -12.80M |
Bridgemarq Real Estate Services Technical Analysis
Negative
13.14
Price Trends
13.66
Negative
14.08
Negative
13.43
Negative
Market Momentum
0.16
Negative
58.37
Neutral
78.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BRE, the sentiment is Negative. The current price of 13.14 is below the 20-day moving average (MA) of 13.68, below the 50-day MA of 13.66, and below the 200-day MA of 13.43, indicating a bearish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 58.37 is Neutral, neither overbought nor oversold. The STOCH value of 78.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BRE.
Bridgemarq Real Estate Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
TSE:BRE
Bridgemarq Real Estate Services
13.14
0.58
4.60%
TSE:MRC
Morguard (OTC)
115.02
2.21
1.96%
Bridgemarq Real Estate Services Earnings Call Summary
Earnings Call Date: Mar 14, 2025 | % Change Since: 1.88% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call reflects significant revenue growth and strategic expansion into brokerage operations. However, these positive developments are offset by a reported net loss, decreased adjusted net earnings, and challenges in certain markets. While the Canadian market demonstrated overall growth, higher operating expenses and decreased free cash flow were noted. The company's focus on technological advancements and the potential positive impact of interest rate cuts are promising. Overall, the call presents a mix of positive strategic moves and financial challenges.Highlights
Significant Revenue Growth
Revenue for 2024 amounted to $350.7 million compared to $48.5 million in 2023, reflecting substantial growth due to the addition of brokerage operations.
Expansion into Real Estate Brokerage Operations
The company expanded into real estate brokerage operations, which contributed to future growth opportunities.
Canadian Market Growth
The overall Canadian real estate market showed positive growth, closing at $338 billion, an increase of 12% compared to 2023, driven by an 11% increase in unit sales and a 2% rise in average selling price.
Technological Advancements
The company focused on innovation and technological advancement, incorporating AI tools to support real estate professionals.
Interest Rate Cuts
The Bank of Canada cut its key lending rate by 25 basis points to 2.75%, marking the seventh consecutive cut, which is expected to be favorable for buyers.
Lowlights
Net Loss Reported
The company generated a net loss of $10.3 million in 2024 compared to net earnings of $4 million the previous year, driven by non-cash accounting losses and higher interest expenses.
Decline in Adjusted Net Earnings
Adjusted net earnings amounted to $7.3 million, down from $12.4 million in the prior year, due to higher interest expenses and increased depreciation.
Free Cash Flow Decrease
Free cash flow in 2024 was $16.8 million, down from $18.1 million in 2023, primarily due to increased interest expenses.
Challenges in Certain Markets
There were periods of weak activity in certain markets, although the overall Canadian market showed growth.
Higher Operating Expenses
There was an increase in operating expenses for the quarter, partly driven by year-end adjustments and challenges in comparing year-over-year figures due to the addition of brokerage businesses.
Company Guidance
During the 2024 Fourth Quarter Results Conference Call for Bridgemarq Real Estate Services, Inc., significant guidance was provided regarding the company's financial performance and strategic direction. The company reported a substantial increase in revenue for 2024, amounting to $350.7 million, up from $48.5 million in 2023, largely due to the acquisition of brokerage operations. However, Bridgemarq experienced a net loss of $10.3 million, in contrast to net earnings of $4 million the previous year, attributed to non-cash accounting losses, higher interest expenses, and increased depreciation and amortization. Adjusted net earnings for 2024 were $7.3 million, down from $12.4 million in 2023, primarily due to higher interest expenses and non-cash charges. Despite these challenges, the company generated $16.8 million in free cash flow and maintained a stable realtor network of over 20,000 professionals. The Canadian real estate market showed positive growth, with a 12% increase in the overall market value, driven by an 11% rise in unit sales and a 2% increase in average selling prices. The company remains optimistic about future growth opportunities, supported by innovations and strategic acquisitions, including the expansion of its brokerage operations and technological advancements to enhance services.Bridgemarq Real Estate Services Corporate Events
Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Bridgemarq Prepares for Virtual Annual Shareholders’ Meeting with Key Filings
Neutral
Mar 31, 2025
Bridgemarq Real Estate Services Inc. has filed its Management Information Circular and Annual Report for the year ended December 31, 2024, in preparation for its virtual annual shareholders’ meeting on May 13, 2025. This filing is significant as it provides shareholders with essential information about the company’s performance and strategic direction, impacting stakeholders’ understanding and engagement with Bridgemarq’s operations.
DividendsBusiness Operations and StrategyFinancial Disclosures
Bridgemarq Real Estate Services Reports 2024 Financial Results and Declares Dividend
Neutral
Mar 14, 2025
Bridgemarq Real Estate Services reported a significant increase in revenue for 2024, reaching $350.7 million due to the acquisition of real estate brokerages and internalization of its management team. Despite this growth, the company faced a net loss of $10.3 million, attributed to non-cash losses on the valuation of Exchangeable Units, and announced a monthly dividend to shareholders. The financial results reflect the impact of higher interest expenses and increased amortization of intangible assets, partially offset by the positive contributions from the acquired businesses.
Financial Disclosures
Bridgemarq Real Estate Services to Discuss Q4 Financial Results
Neutral
Mar 5, 2025
Bridgemarq Real Estate Services announced it will host a conference call on March 14, 2025, to discuss its fourth quarter financial results. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, impacting its operations and positioning in the real estate services industry.
Dividends
Bridgemarq Real Estate Services Announces Cash Dividend
Positive
Feb 18, 2025
Bridgemarq Real Estate Services Inc. has declared a cash dividend of $0.1125 per restricted voting share, payable on March 31, 2025, to shareholders recorded by February 28, 2025. This announcement reflects the company’s commitment to providing returns to its shareholders and may enhance its attractiveness to investors, potentially impacting its market positioning positively.
Bridgemarq Real Estate Services Declares Cash Dividend
Jan 17, 2025
Bridgemarq Real Estate Services Inc. has announced a cash dividend of $0.1125 per restricted voting share, payable on February 28, 2025, to shareholders of record on January 31, 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value and may influence investor perceptions regarding its financial health and operational strategy.
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.