DigitalBridge Group Inc (DBRG, Financial), a global digital infrastructure firm, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 22.26%, from a market cap of $2.9 billion to its current price of $17.82. This impressive performance is a stark contrast to the stock's status three months ago when it was significantly overvalued. However, according to the GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is now modestly undervalued with a GF Value of $23.5.
Company Overview
DigitalBridge Group Inc operates primarily in the United States, offering services in segments such as Investment Management, Operating, and Corporate and Other. The Operating segment, which owns and leases digital assets, accounts for the majority of the firm's revenue. The company's recent shift from hospitality real estate to digital infrastructure has played a significant role in its recent stock performance.
Profitability Analysis
Despite the company's impressive stock performance, its profitability rank stands at 5/10, indicating average profitability. The company's operating margin is -25.55%, which is better than 12.69% of companies in the industry. The ROE stands at -16.58%, better than 10.8% of companies, while the ROA is -2.32%, better than 21.46% of companies. The ROIC is -3.32%, better than 10.58% of companies. Over the past 10 years, the company has been profitable for 4 years.
Growth Prospects
DigitalBridge Group Inc's growth rank is 4/10, indicating below-average growth. However, the company's 3-year revenue growth rate per share is 144.20%, better than 98.03% of companies. The 5-year revenue growth rate per share is -9.20%, better than 26.14% of companies. The 3-year EPS without NRI growth rate is 29.90%, better than 79.37% of companies, and the 5-year EPS without NRI growth rate is 16.80%, better than 77.9% of companies.
Top Holders
The top three holders of DigitalBridge Group Inc's stock are Chuck Akre (Trades, Portfolio) with a 3.09% share, Chuck Royce (Trades, Portfolio) with a 0.37% share, and Steven Cohen (Trades, Portfolio) with a 0.26% share.
Competitive Landscape
DigitalBridge Group Inc operates in a competitive industry with major players such as Broadstone Net Lease Inc (BNL, Financial) with a market cap of $2.69 billion, Essential Properties Realty Trust Inc (EPRT, Financial) with a market cap of $3.42 billion, and PS Business Parks Inc (PSB, Financial) with a market cap of $5.18 billion.
Conclusion
In conclusion, DigitalBridge Group Inc's stock performance has been impressive over the past three months, with a 22.26% gain. Despite average profitability and below-average growth, the company's shift to digital infrastructure and its strong 3-year revenue growth rate per share indicate potential for future growth and profitability. However, the company operates in a competitive industry and will need to continue innovating to maintain its market position.
