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 $2.94 billion, with its stock price currently at $18.08. Over the past week, the stock has gained 5.52%, and over the past three months, it has seen a remarkable increase of 29.63%. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The current GF Value of DBRG is $23.5, indicating that the stock is modestly undervalued. This is a significant shift from three months ago when the stock was significantly overvalued with a GF Value of $4.61.
Understanding DigitalBridge Group Inc
DigitalBridge Group Inc operates in the Real Estate industry. Previously known as Colony Capital, the firm merged with its subsidiary Digital Colony in 2020 to rebrand as DigitalBridge. This merger led to the discontinuation of ownership of hospitality real estate and shifted the firm's focus towards digital infrastructure. The company's services span across 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 from markets primarily located in the United States.
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 12.96% of the companies in the industry. The ROE is -16.58%, better than 10.44% of the companies, and the ROA is -2.32%, better than 21.06% of the companies. The ROIC is -3.32%, better than 10.63% of the companies. Over the past decade, the company has had 4 years of profitability, which is better than 20.57% of the companies in the industry.
Growth Prospects
DigitalBridge's Growth Rank is 4/10, indicating moderate growth prospects. The company's 3-Year Revenue Growth Rate per Share is 144.20%, which is better than 98.03% of the companies in the industry. However, the 5-Year Revenue Growth Rate per Share is -9.20%, which is better than only 26.04% of the companies. The 3-Year EPS without NRI Growth Rate is 29.90%, better than 79.43% of the companies, and the 5-Year EPS without NRI Growth Rate is 16.80%, better than 77.93% of the companies.
Top Holders of DigitalBridge Stock
Chuck Akre (Trades, Portfolio) is the top holder of DigitalBridge stock, holding 5,020,631 shares, which accounts for 3.09% of the company's shares. The second-largest holder 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, accounting for 0.26% of the company's shares.
Competitors in the Industry
DigitalBridge faces competition from several companies in the Real Estate industry. Broadstone Net Lease Inc (BNL, Financial) has a stock market cap of $3.06 billion, Essential Properties Realty Trust Inc (EPRT, Financial) has a market cap of $3.73 billion, and PS Business Parks Inc (PSB, Financial) has a market cap of $5.18 billion.
Conclusion
In conclusion, DigitalBridge Group Inc has seen a significant surge in its stock price over the past three months. The company's shift towards digital infrastructure has been well-received by the market, and its growth prospects look promising. However, the company's profitability metrics indicate room for improvement. The company faces stiff competition in the industry, but its unique focus on digital infrastructure sets it apart. Investors should keep a close eye on this stock as it continues to navigate the digital infrastructure landscape.
