What's Driving DigitalBridge Group Inc's Surprising 11% Stock Rally?

DigitalBridge Group Inc (DBRG, Financial) has recently caught the attention of investors with its notable stock performance. Over the past week, the company's stock price has seen a gain of 1.67%, and looking at a broader timeframe, it has surged by 11.41% over the past three months. This upward trajectory has been reflected in the company's market capitalization, which currently stands at $3.11 billion. The current stock price is $19.04, which, when compared to the GF Value of $22.45, suggests that the stock is modestly undervalued. This valuation is consistent with the past GF Value of $19.36, indicating a steady perception of the stock's value.

Introduction to DigitalBridge Group Inc

DigitalBridge Group Inc operates within the real estate industry, focusing on the investment and management of digital infrastructure. The company's portfolio includes a variety of assets such as cell towers, data centers, fiber networks, small cells, and edge infrastructure. These assets are critical to the digital economy, providing the necessary foundation for data transmission and storage. DigitalBridge's strategic investments in these areas position the company to capitalize on the growing demand for digital infrastructure. 1770831741544722432.png

Assessing DigitalBridge's Profitability

When it comes to profitability, DigitalBridge Group Inc holds a Profitability Rank of 6/10. The company's operating margin is an impressive 37.12%, which is better than 78.36% of its industry peers. Additionally, the return on equity (ROE) stands at 11.50%, surpassing 80.3% of competitors. The return on assets (ROA) at 2.16% and return on invested capital (ROIC) at 3.90% also indicate that the company is performing well against the majority of its industry counterparts. Over the past decade, DigitalBridge has achieved profitability in four years, which is a better track record than 20.56% of its peers. 1770831767201280000.png

Growth Prospects of DigitalBridge Group Inc

The company's Growth Rank is 4/10. DigitalBridge has demonstrated a 3-Year Revenue Growth Rate per Share of 11.20%, outperforming 65.83% of its industry peers. The 5-Year Revenue Growth Rate per Share is also strong at 9.20%, which is better than 69.71% of the competition. These figures suggest that DigitalBridge is not only maintaining its profitability but is also expanding its revenue streams effectively. 1770831786927091712.png

Notable Shareholders in DigitalBridge Group Inc

Among the significant shareholders of DigitalBridge Group Inc, Chuck Akre (Trades, Portfolio) leads with 4,402,220 shares, representing a 2.69% share percentage. Following him is Steven Cohen (Trades, Portfolio), holding 645,213 shares, which equates to a 0.39% share percentage. Chuck Royce (Trades, Portfolio) also has a notable stake in the company with 326,480 shares, amounting to a 0.2% share percentage. The involvement of these prominent investors underscores the confidence in DigitalBridge's business model and future prospects.

Competitive Landscape

DigitalBridge Group Inc operates in a competitive landscape, with key players such as eXp World Holdings Inc (EXPI, Financial) with a market cap of $1.5 billion, Kennedy-Wilson Holdings Inc (KW, Financial) valued at $1.19 billion, and Cushman & Wakefield PLC (CWK, Financial) with a market cap of $2.33 billion. These companies, along with DigitalBridge, form a dynamic real estate industry focused on digital infrastructure, each vying for market share and investment.

Conclusion

In summary, DigitalBridge Group Inc's stock performance has been robust, with a significant gain over the past three months. The company's valuation remains modestly undervalued according to the GF Value, suggesting potential for further growth. DigitalBridge's profitability and growth metrics are strong, particularly in comparison to industry peers. The company's focus on digital infrastructure investment positions it well in a rapidly evolving market. With notable shareholders backing the company and a competitive stance in the industry, DigitalBridge Group Inc presents an interesting case for investors looking for exposure to the digital real estate sector.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.