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 market cap stands at $2.72 billion, with its current price at $16.7, marking a 40.94% increase from its price of $12.1 three months ago. However, the stock has seen a slight dip of 0.68% over the past week. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of DBRG is $23.5, a significant rise from its past GF Value of $4.61 three months ago. Despite the increase in GF Value, the stock's current valuation suggests a possible value trap, urging investors to think twice before investing.
About DigitalBridge Group Inc
DigitalBridge Group Inc operates in the Real Estate industry. Previously known as Colony Capital, the firm underwent a merger with its subsidiary Digital Colony in 2020, rebranding itself as DigitalBridge. This strategic move marked the company's transition from hospitality real estate to digital infrastructure. The firm's revenue primarily comes from its Operating segment, which owns and leases digital assets, predominantly in the United States. The company's shift in focus towards digital infrastructure has been a significant factor in its recent stock performance.
Profitability Analysis
As of June 30, 2023, DigitalBridge's Profitability Rank stands at 5/10, indicating a moderate level of profitability. The company's Operating Margin is -25.55%, which is better than 13.04% of the companies in the industry. The company's ROE and ROA are -16.58% and -2.32% respectively, outperforming 10.22% and 20.56% of the companies in the industry. The ROIC of -3.32% is better than 10.77% of the companies in the industry. Over the past decade, the company has had 4 years of profitability, which is better than 20.19% of the companies in the industry.
Growth Prospects
As of today, DigitalBridge's Growth Rank is 4/10, indicating moderate growth potential. The company's 3-Year Revenue Growth Rate per Share is 144.20%, outperforming 98.19% of the companies in the industry. However, its 5-Year Revenue Growth Rate per Share is -9.20%, which is better than 26.2% of the companies in the industry. The company's 3-Year and 5-Year EPS without NRI Growth Rates are 29.90% and 16.80% respectively, outperforming 79.73% and 77.93% of the companies in the industry.
Top Holders of DigitalBridge Stock
Chuck Akre (Trades, Portfolio) is the top holder of DigitalBridge stock, owning 5,020,631 shares, which accounts for 3.09% of the company's shares. Following him is Chuck Royce (Trades, Portfolio), who holds 602,862 shares, accounting for 0.37% of the company's shares. Steven Cohen (Trades, Portfolio) is the third-largest holder with 430,000 shares, representing 0.26% of the company's shares.
Competitors Analysis
DigitalBridge faces stiff competition from other companies in the Real Estate industry. Broadstone Net Lease Inc (BNL, Financial) has a stock market cap of $3.01 billion, Essential Properties Realty Trust Inc (EPRT, Financial) has a market cap of $3.75 billion, and PS Business Parks Inc (PSB, Financial) has a market cap of $5.18 billion.
Conclusion
In conclusion, DigitalBridge Group Inc has shown significant growth in its stock price over the past three months. However, its current GF Valuation suggests a possible value trap, urging investors to exercise caution. The company's profitability and growth ranks indicate moderate profitability and growth potential. The company's shift in focus towards digital infrastructure could be a significant factor in its future performance. However, potential investors should also consider the company's profitability metrics and the competitive landscape before making an investment decision.
