BRC Group Holdings, Inc. (RILY)
Valuation Overview•Is BRC Group Holdings, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 57/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
RILY demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 36.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $450.6M | -11.5% | — | — | +24.8% | |
| EBITDA | $261.2M | — | +38.6% | — | — | |
| Net Income | $213.3M | +140.2% | — | — | +38.5% | |
| EPS (Diluted) | $6.98 | +138.5% | — | +5.3% | +29.7% | |
| Free Cash Flow | $223.1M | -127.8% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 73.8% | 63.2% | 71.3% | 76.8% |
| Operating Margin | 36.8% | -6.5% | 3.3% | 12.0% |
| Net Margin | 35.6% | -14.2% | -6.0% | 2.5% |
| FCF Margin | 17.0% | 5.4% | 3.9% | 1.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $6.57 | — | ||
| Q1'26 | — | $2.97 | — | ||
| Q4'25 | — | $0.77 | — | ||
| Q3'25 | — | $-7.74 | — | ||
| Q2'25 | — | $-0.86 | — | ||
| Q1'25 | — | $-4.97 | — | ||
| Q1'25 | — | $-14.35 | — | ||
| Q4'24 | — | $-9.32 | — |
Total return is +209.3% (1Y), outperforming the benchmark by +184.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +73.7% | +64.4% | — |
| 1Y | +209.3% | +184.3% | — |
| 3YCAGR | -34.7% | -54.7% | +6.9% |
| 5YCAGR | -18.8% | -31.8% | +22.0% |
| 10YCAGR | +13.9% | +0.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about BRC Group Holdings, Inc. (RILY) valuation, health, and returns.
Based on peer relative multiples, BRC Group Holdings, Inc. appears Cheap versus peers compared to industry peers.
BRC Group Holdings, Inc. has multiple valuation anchors: Peer Relative Fair Value: $283.22. A convergence of these signals offers higher conviction.
BRC Group Holdings, Inc. displays fair financial health with a composite quality score of 57/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 8.3%.
BRC Group Holdings, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
BRC Group Holdings, Inc.'s current growth trajectory is Stable. The company achieved -11.5% 1Y revenue growth and +138.5% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 1 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for BRC Group Holdings, Inc. include: -51.5% 1-year max drawdown, high beta (2.00x market volatility). Volatility risk is characterized by a beta of 2.00x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.