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DigitalBridge Group (DBRG)
NYSE:DBRG
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DigitalBridge Group
(NYSE:DBRG)
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Rating:60Neutral
Price Target:
$13.00
▲(10.17% Upside)
DigitalBridge Group's overall stock score reflects a balance of strengths and challenges. The most significant factor is the positive technical analysis, indicating bullish momentum. The earnings call also provided a positive outlook with strong strategic investments. However, financial performance is mixed with operational challenges, and valuation metrics are concerning, particularly the negative P/E ratio.
Positive Factors
Fee Revenue Growth
The consistent growth in fee revenue and earnings indicates strong demand for DigitalBridge's investment management services, enhancing long-term profitability and market position.
Strategic Investments
Strategic investments in data centers and digital infrastructure position DigitalBridge for sustained growth, capitalizing on increasing demand for connectivity and data storage.
Cash Flow Growth
Improved cash generation capabilities provide DigitalBridge with financial flexibility to invest in growth opportunities and manage debt, supporting long-term stability.
Negative Factors
Revenue Decline
The sharp decline in revenue growth poses challenges to sustaining business operations and may impact the company's ability to fund future investments.
Negative EBIT Margin
Operational inefficiencies reflected in the negative EBIT margin could hinder profitability and limit DigitalBridge's competitive edge in the digital infrastructure sector.
Realized Loss Impact
The realized loss negatively impacts distributable earnings, potentially affecting investor confidence and the company's ability to distribute returns.
DigitalBridge Group (DBRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.24B
Dividend Yield0.34%
Average Volume (3M)2.09M
Price to Earnings (P/E)33.0
Beta (1Y)1.78
Revenue Growth-76.81%
EPS Growth-101.09%
CountryUS
Employees324
SectorFinancial
Sector Strength70
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.10
Shares Outstanding182,123,630
10 Day Avg. Volume2,398,893
30 Day Avg. Volume2,091,689
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)0.97
Price to Sales (P/S)3.13
P/FCF Ratio33.61
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue10.04
Enterprise Value/Gross Profit8.84
Enterprise Value/Ebitda17.13
Forecast
1Y Price Target
$15.50Price Target Upside31.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
DigitalBridge Group Business Overview & Revenue Model
Company DescriptionDigitalBridge (NYSE: DBRG) is an infrastructure investment firm. It specializes in investing and operating businesses across the digital ecosystem including cell towers, data centers, fiber, small cells, edge infrastructure, digital infrastructure and real estate. DigitalBridge Group, Inc. was founded in 2009 and is headquartered in Boca Raton, Florida with additional offices in Los Angeles, California; New York, New York; Boston, Massachusetts; Denver, Colorado; London, United Kingdom; Senningerberg, Luxembourg and Singapore.
How the Company Makes MoneyDigitalBridge generates revenue through multiple streams, primarily from its investment management services, which include management fees and performance fees from its investment funds focused on digital infrastructure. The company earns management fees based on the assets under management (AUM) within these funds. Additionally, DigitalBridge benefits from performance fees, which are contingent on achieving certain return thresholds for its investors. The firm also generates income from its direct investments in digital infrastructure assets, such as cell towers, data centers, and fiber networks, through leasing arrangements and operational revenues. Strategic partnerships with telecommunications companies and technology providers further enhance its revenue potential by facilitating access to high-demand digital infrastructure projects.
DigitalBridge Group Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong fee revenue growth, successful fundraising, and significant strategic investments. However, the realization of a loss and carried interest reversal slightly offset these achievements.Q2-2025 Updates
Positive Updates
Fee Revenue and Earnings Growth
DigitalBridge delivered an 8% year-over-year growth in fee revenue, driving a 23% increase in fee-related earnings as margins continued to expand.
Strong Fundraising Performance
The company raised $1.3 billion in the quarter, bringing the year-to-date total to $2.5 billion, making progress towards their $40 billion FEEUM target for the year.
Significant Investment Pipeline
DigitalBridge has a pipeline of over 5.4 gigawatts, up 50% over the prior year, with plans to put $50-plus billion to work in contracted data center projects.
Strategic Acquisitions and Partnerships
Key acquisitions and partnerships include the addition of Yondr in hyperscale data centers and Takanock in digital power strategy.
Increased Demand from AI and Cloud
Demand from AI and hyperscale cloud providers is driving a leasing pipeline increase of over 50%, with a power bank now standing at nearly 21 gigawatts.
Negative Updates
Realized Loss Impacting Distributable Earnings
Distributable earnings was negative $19 million for the quarter, primarily due to a $40 million realized loss from an InfraBridge fund investment.
Carried Interest Reversal
A $12 million net reversal of carried interest was reported, indicating fluctuations in the fair value of fund investments.
Company Guidance
During the second quarter of 2025, DigitalBridge Group, Inc. provided robust guidance and key metrics reflecting their strategic progress. The company reported an 8% year-over-year increase in fee revenue, primarily driven by organic growth in their flagship fund series, contributing to a 23% rise in fee-related earnings as margins expanded. They successfully raised $1.3 billion in the quarter, bringing their year-to-date fundraising total to $2.5 billion, making significant strides towards their $40 billion Fee-Earning Equity Under Management (FEEUM) target for the year. Furthermore, DigitalBridge is deploying over $50 billion in capital over the next few years, focusing on contracted data center projects, with a current pipeline of over 5.4 gigawatts, up 50% from the prior year. The company's co-investment program also showed strong performance, with fee rates 30% higher year-to-date, averaging 60 basis points. DigitalBridge expects to exceed its $40 billion FEEUM target for 2025, driven by strong capital formation and strategic investments in digital infrastructure, particularly in AI and power solutions.DigitalBridge Group Financial Statement Overview
Summary
DigitalBridge Group's financial performance is mixed. The company has a strong gross profit margin of 122.10% and a high free cash flow growth rate of 93.71%, indicating robust profitability and cash generation. However, a significant decline in revenue growth rate at -68.08% and a negative EBIT margin highlight operational challenges. The balance sheet is stable with low leverage, providing a solid foundation for future growth.Income Statement
DigitalBridge Group's income statement shows a mixed performance. The TTM data indicates a significant decline in revenue growth rate at -68.08%, which is concerning. However, the company has managed to maintain a positive net profit margin of 29.12% in the TTM, which is a positive sign of profitability. The gross profit margin is exceptionally high at 122.10%, suggesting strong cost management. Despite these strengths, the negative EBIT margin in the TTM highlights operational challenges.45
Neutral
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.17 in the TTM, indicating conservative leverage. The return on equity is modest at 2.71%, suggesting limited profitability from equity investments. The equity ratio is not provided, but the overall low leverage is a positive indicator of financial stability.55
Neutral
Cash Flow
Cash flow analysis reveals a strong free cash flow growth rate of 93.71% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is not available, but the free cash flow to net income ratio is high at 99.43%, suggesting efficient cash conversion. These metrics highlight a robust cash flow position, despite previous periods of negative free cash flow.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 299.61M | 607.03M | 821.38M | 694.77M | 965.80M | 416.43M |
| Gross Profit | 340.40M | 462.38M | 784.73M | 650.50M | 621.36M | 281.14M |
| EBITDA | 175.68M | 218.96M | 343.19M | 220.39M | 210.00M | 25.67M |
| Net Income | 53.73M | 70.52M | 185.28M | -321.80M | -216.82M | -2.68B |
Balance Sheet | ||||||
| Total Assets | 3.41B | 3.51B | 3.56B | 11.03B | 14.20B | 20.20B |
| Cash, Cash Equivalents and Short-Term Investments | 340.70M | 302.15M | 345.33M | 855.56M | 1.60B | 703.54M |
| Total Debt | 335.18M | 339.71M | 420.82M | 609.87M | 5.64B | 4.42B |
| Total Liabilities | 957.75M | 1.02B | 1.05B | 6.46B | 8.93B | 12.91B |
| Stockholders Equity | 2.02B | 1.96B | 1.81B | 1.66B | 2.15B | 2.50B |
Cash Flow | ||||||
| Free Cash Flow | 264.59M | 56.53M | 233.64M | -1.88B | -121.69M | -2.04B |
| Operating Cash Flow | 266.11M | 60.12M | 233.64M | 262.58M | 248.24M | 89.89M |
| Investing Cash Flow | -48.27M | -11.22M | -979.04M | -1.91B | 146.56M | -1.93B |
| Financing Cash Flow | -68.21M | -90.84M | 58.15M | 923.78M | 411.26M | 1.37B |
DigitalBridge Group Technical Analysis
Positive
11.80
Price Trends
11.27
Positive
10.88
Positive
10.48
Positive
Market Momentum
0.24
Positive
52.58
Neutral
26.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBRG, the sentiment is Positive. The current price of 11.8 is above the 20-day moving average (MA) of 11.75, above the 50-day MA of 11.27, and above the 200-day MA of 10.48, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 26.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DBRG.
DigitalBridge Group Risk Analysis
DigitalBridge Group disclosed 48 risk factors in its most recent earnings report. DigitalBridge Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DigitalBridge Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.66B | 24.15 | 8.07% | 3.69% | 6.09% | -65.94% | |
72 Outperform | $1.13B | 10.81 | 4.33% | 4.51% | 1.59% | ― | |
62 Neutral | $1.24B | 16.67 | 6.49% | 6.68% | 11.68% | 37.31% | |
60 Neutral | $2.24B | 33.05 | 3.04% | 0.34% | -76.81% | -101.09% | |
59 Neutral | $654.16M | 34.18 | 16.84% | 9.75% | 5.85% | ― | |
58 Neutral | $1.80B | -6.68 | -15.59% | 11.41% | -11.06% | 29.36% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
DBRG
DigitalBridge Group
11.80
-2.29
-16.25%
ALEX
Alexander & Baldwin
18.22
-0.04
-0.22%
ESRT
Empire State Realty
7.65
-3.25
-29.82%
AAT
American Assets
20.29
-4.85
-19.29%
UE
Urban Edge Properties
20.08
-0.53
-2.57%
GNL
Global Net Lease
8.15
0.73
9.84%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.